Trends, Projections and Developments Across the ASEAN Region

The importance of the 10 nation partnership among the members of the Association of Southeast Asian Nations (ASEAN) was put into perspective when delegates attending the recently concluded ASEAN Tourism Forum (ATF) 2007 in Singapore learned that tourist arrivals to the region grew strongly last year.  There were more than 56 million visitors, an 8 per cent increase on 2005.  (Of this total, 28 million came from outside the ASEAN region.)

More than 1600 buyers, sellers, government tourism officials and media from more than 50 countries participated in the annual ATF, a cooperative regional effort to promote the ASEAN region as a single tourist destination, held in the Raffles City Convention Centre and the Singapore International Convention & Exhibition Centre in Suntec City.

The annual forum brought together ASEAN tourism ministers, national tourism leaders and executive decision makers from Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam to review industry developments, exchange ideas, develop concepts and formulate specific recommendations to further accelerate the growth of tourism to and through the region.

All 10 ASEAN member nations organised media briefings for the 26th ATF with senior officials presiding to present the results of the previous year, forecast future trends and, in some instances, make major announcements about forthcoming tourism development projects.

The host country of Singapore which had the honour of presenting the first press conference announced that its tourism sector generated an estimated S$12.4 billion in tourism receipts from 9.7 million visitor arrivals in 2006. 

[Pictured: Singapore Heritage – The Chinatown Heritage Centre was one of many new attractions that ATF delegates visited during their stay in Singapore.]

Both were all-time records with tourism receipts up 14.5 per cent over 2005 and arrivals posting an increase of 9 per cent over the previous year.  The target for 2015 is to triple tourism receipts and to double tourism arrivals.

Indonesia and China were the top two markets in 2006 with Australia coming in at third place with 692,000 arrivals.  This was an 11 per cent increase for Australian arrivals over 2005.

The average occupancy rate for the hotel sector reached 85 per cent while the average room rate last year was estimated at S$164.

In 2006 Singapore launched two marketing and advertising campaigns: Singapore, Where Great Things Happen, aimed at the Business Travel and Meetings, Incentive Travel, Convention and Exhibitions market and an umbrella Uniquely Singapore brand campaign, Beyond Words.

In addition to the opening of two integrated resorts, Marina Bay Sands and Resorts World Sentosa in 2009 and 2010, respectively and the opening of the 165 metre observation wheel, The Singapore Flyer next year (See the TravelMole report of February 14) tourism officials in the island nation plan to redevelop Orchard Road and the Singapore River.

It was revealed during the Myanmar media briefing that the country registered around 630,000 arrivals in 2006.  Some 257,000 visitors transited through the international airport at Yangon.  The target is one million arrivals within the next 10 years.  Thailand and China are the top two markets for the country.

A visa on arrival scheme is being actively discussed.  Visitors on package tours are already eligible for a 28 day visa on arrival.

While architecture and history are two top attractions of the country, Myanmar is actively promoting cruise tourism.  Nearly 3400 cruise passengers arrived last year on eight liners.  White water rafting and yachting tourism are niche markets being pursued with the Myeik Archipelago considered a major yacht cruise and scuba diving destination. 

The Yangon International Airport is set to receive a new terminal.  Meanwhile Qatar Airways has commenced Doha/Yangon flights.

Cambodia welcomed 1.7 million arrivals in 2006, a 19.6 per cent increase over 2005.  Korea, the USA, Taiwan and China are the top four markets for the country.  Cambodia has 335 graded hotels offering 19,655 rooms.

The Angkor Wat temple complex remains the number one attraction though the Tonle Sap Great Lake and Mekong River dolphins (just 100 remain!) are other “treasures” of the country.  The Angkor International Tourism Exchange (AITEX) will be held in the Siem Reap Convention and Exhibition Centre from October 6 – 9, 2007.  See www.aitexconvention.com

Eco tourism in the north east sector of the country is being promoted.  Heritage tourism, Phnom Penh and the coastal area including Sihanoukville’s beaches are additional attractions. 

Sihanoukville’s new airport opened on January 15 to small aircraft making domestic flights.  The plan is to eventually turn the new airport into a hub for regional flights.

Indonesia appointed Sydney-based Integra Marketing in November 2006 on a contract basis to act as the country’s promotion and marketing office in Australia.

Eco tourism and marine tourism are two niche markets that Indonesia is promoting this year with a particular focus on West Sumatra, North and South Sulawesi and West and East Nusa Tenggara.  Maluku was singled out as being one of the 10 best diving sites in the world.

Indonesia received 4.8 million tourists in 2006.  Australia contributed some 213,000 visitors.  The average expenditure is around US$100 per day with the average length of stay recorded at just over 9 days in 2006. 

Pictured: Yogyakarta -The reconstruction of the World Heritage listed Borobudur is complete following last year’s earthquake.]

The reconstruction of Borobudur is complete following last year’s earthquake.  The hotel reconstruction in Yogyakarta is nearly complete with occupancy now hovering around the 70 per cent mark.  Meanwhile, hotel occupancy in Bali has increased though four and five star hotels “are still suffering” even though they are reportedly charging three and four star rates.

Indonesia is anticipating a boost in arrivals following the forthcoming Pacific Asia Travel Mart in Bali being held on the holiday island from September 25 – 28.  This event which is expected to attract more than 1000 buyers and sellers will be staged at the Bali International Convention Centre.

Breaking Through was the theme of the presentation made by the Philippine Department of Tourism.  The nation of islands attracted 2.84 million visitors in 2006, an 8 per cent increase over 2005.  The projection for 2007 is just over 3.2 million arrivals with the 5 million mark expected to be broken by 2010.  Korea is the most important market for the Philippines.

Australia is fast emerging as a major source market, however, as it reached 101,313 arrivals in 2006.  Consequently it was announced at the press conference that there will be increased investment and focus promotion programs in strategic markets such as Australia, Russia, Germany and the USA/Canada.  “More resources will be put in focus markets like Australia.”

There are just 10 flights a week from Australia which represents 2,788 seats.  “There is a need for more seats across the board.  Growth is being hindered by the lack of capacity.  An open skies policy needs to be adopted and implemented to sustain growth.”

The number one appeal of the Philippines is eco tourism though spas, golf and diving are also important niche markets.  Shopping can’t be ignored, however, because Manila now has the largest mall in Asia.

Meanwhile Thailand is gearing up for a big birthday and a mega event in 2007.  His Royal Highness King Bhumibhol Adulyadej turns 80 on December 5.  There are a number of festivals planned to commemorate the birthday of the longest reigning monarch in the world. 

[Pictured: The former TAT Director in Sydney, Phornsiri Manoharn, is the new Governor, Tourism Authority of Thailand, based in Bangkok.]

As well, the kingdom will host the Thailand Travel Mart 2007 Plus from June 7 – 10.  The event which combines the Thailand Travel Fair with the “Amazing Gateway to the Mekong Subregion” will be held in the Impact Exhibition and Convention Centre (See www.tourismthailand.org until a dedicated website is launched for TTM 2007 Plus)

Thailand will host the ASEAN Tourism Forum in Bangkok from January 18 – 26, 2008. See www.atf2008thailand.com

A mega event set for later this year is the Bangkok Marathon.  Some 50,000 runners are expected to participate in this sporting spectacle in November.

Music buffs are getting ready for two significant festivals being held in Thailand this year.  The Pattaya International Music Festival will be held from March 16 – 18 while the Hua Hin Jazz Festival is set for June 8 – 10.  These events will attract Thai and international artists. 

The Thai tourism industry ended last year with a total of 13.76 million visitors.  Revenue from tourism was around 468 billion baht or about $19.5 billion.

The key word for tourism in Thailand these days is “high end”.  The emphasis of the current tourism policy is “to attract high end, quality tourists who want to learn about Thai life without destroying natural resources.”

The Lao People’s Democratic Republic has had two solid years of growth in a row.  In 2005 the one million arrivals mark was reached for the first time.  In 2006 there were 1.2 million arrivals which generated some US$160 million in foreign exchange.  The country is hampered “by the limited number of guides and hotel capacity”.

Eco tourism, cultural tourism and historical tourism are the three main tourist lures in this nation of 5.9 million people which has 68 ethnic groups.

The country has three international airports including one in the southern town of Pakse.  Next month this market town will be linked to Bangkok with Bangkok Airways.  A survey is being carried out for the planning of the new Luang Prabang international airport.  Meanwhile the highway connecting Kunming, China and Laos and then Bangkok is under construction.

A second bridge over the Mekong River between Laos and Thailand has opened.  Savannakhet Laos and Mukdahan Thailand are now directly connected and visas on arrival are available for overland travellers.  A third bridge over the Mekong is planned between Laos and Myanmar. 

Vietnam is projecting that tourism arrivals will be between the 5.5 million and 6 million mark by 2010 with foreign exchange earnings between US$4 and $5 billion.  The country received 3.5 million tourists in 2006.  Australia was in sixth position with 172,500 arrivals.

[Pictured: Saigon – Ho Chi Minh’s colourful heritage and rich culture are being promoted as major tourism attractions.]

The country currently has 2700 hotels (25 in the 5-star category) and more than 78,000 rooms. 

While visits to remote areas to see minority people are a major lure, cruise tourism has become increasing popular.  Hailong Bay is the epicentre of the domestic cruise industry with facilities being improved to cater to increased visitor numbers.

Vietnam Airlines has launched an Indochina Air Pass which is designed to be a cost effective means of travelling through Vietnam, Laos and Cambodia.

An international event is being planned for later this year in the quaint French colonial hill station of Dalat.  The Dalat Flower Festival will be held in December.

See www.vietnamtourism.gov.vn for details of the year’s events.

Vietnam’s first representative tourist office is expected to be opened in Japan next year.  More representative tourist offices are expected and Australia is high on the list “because of the growing importance of the market source”.  However, a visa on arrival scheme is not being considered for Australia at this stage.

Malaysia began the year with “One Golden Celebration”, the theme for Visit Malaysia Year 2007 (VMY07) which marks “50 years of nationhood, progress, peace and prosperity”.  See www.malaysia.travel/consumer/vmy.  A total of 240 events are planned for VMY07.  

Five mega events are planned for the year including the F1 Grand Prix during the first week of April, the Colours of Malaysia which showcases the ethnic and cultural diversity of Malaysia in May and June, the Kuala Lumpur International Tattoo being held from September 7 – 9 and the World Music Festival. 

The latter event is set for Kuching from July 20 – 22.  This will be the 10th anniversary of this renowned festival with the best performers from the past nine years making music back dropped by the lush jungles outside Kuching.

Malaysia is targeting 20.1 million arrivals this year which are expected to generate some US$12.7 billion.  Last year there were around 17.5 million arrivals.  Between January and October there were just over 231,000 arrivals from Australia.

[Pictured: The well presented Tourism Malaysia booth promoted the many events scheduled during Visit Malaysia Year 2007.]

On the tourism development side Kota Kinabalu in Sabah is expecting more growth with the promotion of its eco tourism resources.  As well, the city is now considered a significant shopping destination with the opening of new malls.

The feasibility of a high speed train that would link Singapore and Kuala Lumpur in just 1 ½ hours is being examined.  As well, consideration is being given to the construction of a dedicated cruise terminal in Penang. 

Brunei Darussalam received 836,000 visitors last year. (The population of this independent country on the island of Borneo is 372,000!)  This was a 2.6 per cent increase over 2005.  Actual tourist arrivals (those staying at least one night in paid accommodation) are around the 123,000 mark, however. 

Brunei, now tagged The Kingdom of Unexpected Treasures, is being branded as a high quality destination but not for people looking for nightlife and discos.  Peace and tranquillity are the subtle lures of the country that were stressed during the press briefing. 

Meanwhile, eco tourism and nature tourism products are being promoted along with cultural tourism (water villages and long houses), heritage tourism (the Royal connections) and sports tourism with golf and diving predominating and wellness and health tourism.  Brunei has already opened sophisticated health spas with more upmarket facilities set to be developed.

Brunei is also looking to extend its marketing and promotional arm in key markets with the establishment of tourist offices though the budget for these has not yet been approved.  “There is a definite need to appoint a marketing representative in Australia.”

The country is proposing to commemorate the 40th anniversary of His Majesty the Sultan’s Coronation Ceremony, the 25th anniversary of the country’s independence and the 62nd and 63rd birthdays of the Monarch which fall between July 2008 and August 2009 with Visit Brunei Year – Celebrating Brunei ‘08/09.  The year of festivities will concentrate on different official and religious celebrations as well as many sporting and cultural activities.   

Exclusive Report by Thomas E. King, TravelMole’s Travel & Lifestyle Editor