Hope 2009: A new beginning

‘The metro-centric traveller would continue to seek experiential holiday options’

P Manoharan Director, Tourism Malaysia, India Market

The year that went by:

The year 2008 has been a challenging year for the tourism industry globally. The present economic crisis has had its implications on the tourism sector as well. We have seen the trend changing from 'vacation' to 'staycation', with businesses postponing or putting on hold their incentive movement. Globally, the aviation industry has seen many of the international airlines getting grounded due to spiralling ATF prices in Q2.

This resulted in the overseas vacations getting impacted and the value-for-money deals gaining prominence with short-breaks being the focal offering from destinations. Malaysia achieved the set target arrivals of more than half-a-million (501,563) in Indian tourist arrivals between January and November 2008 registering an increase of 30.1 per cent over last year. We are optimistic to close 2008 at 540,000 with a high target arrivals set for 2009.

Trends in 2009

We can expect bigger organisations further consolidating in the Indian market with mergers and collaborations emerging as the next success mantra. For the year 2009, the focus would remain towards bringing within the ambit of travellers, an international holiday experience at a competitive price proposition. The metro-centric traveller would continue to seek experiential holiday options with a focus on itineraries in which the travellers are personally engaged through self-drive, diving, golf, spa holidays etc. The High Networth Individuals (HNIs) would look at splurging on high-end indulgences be it wedding, honeymoons, anniversary celebrations or stays at high-end signature properties.

The tier-II and tier-III cities will be the emerging source markets for future destination marketing initiatives to position brand Malaysia with a greater trade push and enhancing tourism yields. While joint promotions with Indian Travel Trade would continue to keep Malaysia visible and a top of choice holiday destination.

Key areas that need to be seriously looked at to boost growth in 2009

The need of the hour is to come together with industry partners to overcome issues faced in the year 2008. In the present day scenario, smart alliances are the way forward for international tourism boards. Tourism Malaysia has adopted this strategy by introducing time-bound tactical campaigns jointly with various NTOs as well as airlines from India offering packages at competitive price, we would like to continue this exercise in 2009 to sustain and grow the numbers.

Critically important would be the support to the trade in terms of incentives to mobilise the arrivals to Malaysia. Trade networking therefore, will now assume more prominence for metro as well as non-metros cities. Creating travel awareness and motivating the tour operators is the key area of focus in 2009. The travel trade should feel confident in selling the product. Long-established relationships between NTOs and agents, especially in the case of Malaysia, would play an important role towards mobilising the trade. Tourism Malaysia's focused marketing approach has been directed to create a loyal distribution network across India. Besides this, all necessary assistance and guidance is provided to specialist tour operators catering to the needs of niche segment. The key to keeping new and returning tourists interested would be in reaching out to niche markets, introducing new products and destinations that appeal to Indian travellers. Tourism Malaysia is looking to offering "luxury lifestyle" holiday and niche experiences with longer stays for the high-net-worth individuals and young FIT market. Alternately, short-breaks featuring active indulgences would also be a key highlight for the leisure segment.