Category Archives: INDUSTRY NEWS

Business travel booming in Asia Pacific

Business travel booming in Asia Pacific

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Business travel in Asia Pacific has grown by 8% annually since 2000 according to a report by the Global Business Travel Association (GBTA). Spurred by strong growth in China and India in particular, the report predicts that the Chinese business travel market will increase to USD 375 billion from USD 196 billion in 2012. Unsurprisingly, emerging markets are showing stronger growth than developed markets. As this article on the TTG Asia website reports, China will also overtake the US as the world’s biggest business travel market in 2016 and India entered the world’s top ten markets in 2012, overtaking Canada. The report tracks business travel spending and growth across 75 countries and 48 industries. More information can be found in this press release on the GBTA website.

A “new force” in Asia’s airline industry

A “new force” in Asia’s airline industry

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Asia Atlantic Airlines, a new regional carrier, was launched on August 7 at Bangkok’s Suvarnabhumi International Airport. A joint venture between Japanese travel giant H.I.S Group and prominent Thai hotelier, the Baiyoke Group, the airline will commence operations in August with two Boeing aircraft to Tokyo and Osaka. The airline will operate out of two hubs: Bangkok Suvarnabhumi and Tokyo Narita International Airport. Asia Atlantic Airline, so called because of its ambition to develop routes beyond Asia, plans to expand its network in the next 12-24 months to China, South Korea, Guam and Hawaii, as further aircraft are delivered.

According to one report, the airline aims to become “a dynamic new force in the region’s airline industry led by a passionate vision and a deep commitment to pan-Asian hospitality” with plans to focus strongly on social media to raise awareness of the airline in the region primarily through its facebook page: https://www.facebook.com/AsiaAtlanticAirlines

Asia to remain centre-stage for luxury

Asia to remain centre-stage for luxury

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Despite fears by major luxury brand owners due to the recent slowdown in the luxury market in Asia, experts predict that the region will account for between 50 and 60% of the global luxury market with the next ten years. According to the Economist Intelligence Unit (EIU), the growth will evidently be driven by China, but India will also be an important growth driver, as reported in this article on the Telegraph’s website.

The EIU claims that there are prospects of a long-term recovery despite recent events which have impacted the market such as the Japanese exchange rate fluctuation and the clampdown by Chinese authorities on displays of luxury by government officials.

Strong potential still with Chinese travellers

Strong potential still with Chinese travellers

chinatourists

Over 83 million Chinese tourists spent more than USD 100 billion dollars in 2012 according to the “2013 Report on China’s Spending of Duty Free Goods” – an increase of nearly 100% on 2010. The report released by the Research Centre for Luxury Goods and Services with Beijing’s University of International Business and Economics (UIBE) and the Fortune Character Institute states that 26% of Chinese travellers headed to Hong Kong and Macau in 2012, making these the top non-mainland destinations. While Chinese travellers are now the world’s biggest travelling spenders as reported on the China.org website, there is still huge potential for growth from the Chinese traveller market. According to another report on the International Business Times website, Chinese tourists account for almost one quarter of tax-free consumption worldwide. As explained in the article, there is still huge growth potential as 60% of wealthy Chinese have yet to spend on luxury goods and services.

Together for Taiwan

Together for Taiwan

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An early morning call in the middle of the summer vacation period from one of APTRA’s members, a global liquor company and active supporter of APTRA’s advocacy work, prompted a flurry of calls and email exchanges between the APTRA executive team and advocacy committee members on the APTRA board. The objective of that call, which was followed by a number of mails from other concerned members including supplier companies and retailers alike, was to seek APTRA’s support and engagement with the Taiwanese government to question the proposed legislation imposing strict customer data controls on travellers purchasing at Taiwan’s duty free shops.

As the details of the proposed tighter customer data controls were not known, APTRA proceeded to lobby the Taiwanese government to seek more information and commence a dialogue to understand the reasons and discuss how this might best be implemented, without harming the suppliers’ and retailers’ business. The challenge was all the more testing given the short consultation period of only seven days. As it has been reported in the trade media, the government decided to drop the initial plans but is still planning on introducing tight measures on data exchange practices with the customs department. Since then APTRA has been actively benchmarking data exchange practices between retailers and customs authorities around the region to ascertain the common practices and assist with dialogue between industry stakeholders and governments on such issues in the future.

What Chinese consumers want

What Chinese consumers want

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Bloomberg TV features an interview with Vogue China Editor, Angelica Cheung, who gives her insider perspective on the changing face of the Chinese consumer. Given the fast pace of change in China, which she describes as the land of opportunities where things happen all the time, brands need to adopt a multi-layered strategy as it is not realistic to set a strategy and keep it unchanged over several years. The multiple tiered nature of the Chinese market also means that it is important to take into account these different social tiers even for in-store merchandising. Watch the video here.

A bullish outlook for Chinese outbound travel

A bullish outlook for Chinese outbound travel

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Hong Kong, Singapore and Tokyo are reportedly among the preferred destinations of Chinese travellers – but as this article on International Business Times website reports, a number of US and European destinations also feature in the top 20. Intra-regional traffic within Asia Pacific remains the highest as the article graphics also demonstrate. With more than 100 million outbound passenger trips expected in 2020, up from around 80 million in 2012, around 60% of international hotels will be offering customised services to Chinese travellers to capitalize on this increasingly dominant passenger segment. In an associated article, the retail behaviour of the Chinese traveller is dissected. It is reported that 62% of luxury purchases in Europe in 2011 were made by Chinese travellers and that 75% of Chinese travellers purchase more than three luxury items when travelling. Read more here. (Scroll down below the “Charging Bull” article for the information on Chinese traveller behaviour.)

Myanmar Unveils $500 Million Tourism Plan

Myanmar Unveils $500 Million Tourism Plan

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The Government of Myanmar, alongside the Asian Development Bank (ADB) and the Government of Norway, has unveiled a Tourism Master Plan which outlines 38 development projects valued at nearly a half billion dollars that will help increase Myanmar’s tourism competitiveness. Other goals of the plan include the protection of environmentally important areas and safeguarding ethnic communities. According to the report on the website of the Asian Development Bank, if Myanmar continues implementing economic, political, and social reforms, international visitor arrivals are forecast to rise as high as 7.5 million in 2020 – a seven-fold increase from current numbers.
Read more here.

Chinese luxury travellers defined: by Hurun Report

Chinese luxury travellers defined: by Hurun Report

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The Hurun Report has published the third edition of its Chinese Luxury Traveller in partnership with the with the International Luxury Travel Market Asia (ILTM Asia).

As reported in the China Luxury Network newsletter and website, the survey reveals the lifestyle and brand preferences of China’s wealthy consumers. The report attempts to calculate the number of Chinese luxury travelers, evaluates their consumption patterns, travel habits as well as key market trends over the last year. In addition, this report examines the impact of Chinese wealth overseas. The report intended to provide a holistic understanding of the spending habits and lifestyle changes of this burgeoning, influential and ever-changing consumer class. This year the survey included questions for the first time on the ‘happiness index’ of these wealthy consumers. France as a destination is still number 1 among the wealthy Chinese travellers according to the report and French luxury goods also remain among their favourite luxury goods.

To download the full report, click here.

Inbound Indian tourism to grow with extended Visa on Arrival programme

Inbound Indian tourism to grow with extended Visa on Arrival programme

As reported in online travel & tourism news site, TTG Asia, the Indian government has given the go-ahead for the introduction of visa-on-arrival (VOA) service at five more international airports – Thiruvananthapuram and Kochi in Kerala, Goa, Hyderabad and Bengaluru. The service, which is intended to boost inbound tourism in India will be available to international travellers from 11 countries, namely Japan, Singapore, Finland, Luxembourg, New Zealand, the Philippines, Cambodia, Laos, Vietnam, Myanmar and Indonesia.Read more here…