Destination Hong Kong/Macau (Incentives and Meetings International)

Originally published in 2005

By Bob Andelman

Hong Kong and Macau aren’t as far away as many American meeting and incentive planners may think.

Oh, sure, getting there can take the better part of a full day flying even nonstop from Los Angeles. But once there, event attendees will find themselves bathed in first-class Western treatment while at the same time immersed in aspects of ancient Asian culture presenting both spectacle and mystery.

“Long-haul incentives have come back and we are seeing a lot of interest in Hong Kong for incentives,” says James La Valle, Los-Angeles based manager of conventions and exhibitions for the Hong Kong Tourism Board. “We have our niche. If you want to motivate either a customer base or sales staff that is well traveled, they want to go to Europe and Asia/Pacific.”

Docherty Incentives of Minneapolis brought a group of 45 people to Hong Kong in early 2005. Jeanne Seehof, who co-owns the firm with her sister Susan Millar, says there is an awful lot to like about such a trip.

“People really like Asia,” according to Seehof. “Their pricing for years was high but they’ve come down a bit. They were known as cheap years and years ago, then they got pricey; now they have an unbelievable number of five-star hotels to choose from at a good rate. It’s unique; it’s interesting. A lot of times we combine it with Beijing so groups get the entire China/Hong Kong feel.”


She says that three nights in each city is perfect for an incentive trip.

“Most people are excited to go. We have some clients who feel they can’t do it because its too far. Our smaller groups are more adventurous. The value is there, the mystery is there and the food is phenomenal; the biggest deterrent is the flight.”

For certain groups and events, Hong Kong could be an ideal meeting destination thanks to not one but two convention and exhibition centers and more than 99 hotels offering meeting space, as well as a wide range of alternative venues. There is something here to meet almost any group’s needs and budget.

The Hong Tourism Board recently launched an online RFP tool on DiscoverHongKong.com that lets meeting planners provide their specifications and search a database of approximately 100 meeting venues around Hong Kong to find the best possible matches for their programs.

“As part of our 2006 Discover Hong Kong Year we have also launched a special online product guide (http://www.discoverhongkong.com/eng/meetings/mice/index.jhtml) that offers a range of discounts, special services and privileges for meetings booked during this special year,” La Valle says. “We are increasing our promotion of Hong Kong to the meetings market as part of our global campaign. We have major direct marketing programs for both corporate and association events, advertising initiatives and in-market promotions scheduled for the first quarter of 2006 aimed at increasing the product knowledge and desirability of Hong Kong with an emphasis on reaching out to corporate decision makers involved in international meetings and incentives. Later in the year we will be running a major educational program in Hong Kong for International Association Executives.”

Trevor Owen, director of marketing for the InterContinental Hong Kong, says that US groups recently hosted at his hotel came from the banking, consulting, manufacturing, service and garment industries.

“One of the things that makes Hong Kong desirable as a destination for meetings is the air 'lift' into the city, meaning that there are so many direct flights from the States,” Owen says.

“Both Kowloon Shangri-La, Hong Kong and Island Shangri-La, Hong Kong receive terrific business from North America in 2005 and the trend is continuing through 2006,” confirms Karen Gray, Shangri-La's director of sales and marketing for North America. “We have particularly enjoyed corporate group meetings from clients including IBM, Boeing, Citigroup, Wyeth and others.”

Hong Kong Tourism Board teamed up with its convention trade partners to offer exceptional privileges to convention organizers who commit international meeting to Hong Kong, according to Paul Toner, J.W. Marriott’s regional vice president from the Asia-Pacific region. “I believe there are more opportunities than challenges when bringing groups here. The most challenging part is narrowing the breath and scope of choice since there are so many activities that meeting planners and their guests can do.”

A common misconception is that Hong Kong is only about shopping. People don’t realize Hong Kong consists of more than 200 islands. You can take trips to old-time fishing villages and see people very removed from the hustle and bustle of downtown.

In the incentive market Hong Kong is increasingly being used in combination with destinations such as Beijing, Bangkok, Chang Mai, Vietnam and Xian to provide a broader introduction to Asia.

The most major misconception for those that haven't visited in a long time is that there were significant changes after the handover from British to Chinese control in 1997. In fact, tourism officials say Hong Kong is the same as it ever was, even under the "One country, two systems" approach to autonomy.

Hong Kong is probably the best-known part of China for US planners. But they can expect to hear a whole lot more about Macau in the coming years as its westernization continues at a lightning pace.

“Perhaps the biggest misperception that US planners have of Macau comes from a general lack of knowledge of the destination,” says Gigi Chiu, media relations officer for the Macau Government Tourist Office. “While known as a gaming and entertainment center of Asia, Macau offers much more to the international traveler. The exciting blending of two distinct cultures, architecture and cuisine make Macau unique and an exciting compliment to a visit to Southeast Asia and China.”

Macau is a compact place – approximately 17 square miles in area. It combines a unique mix of Portuguese and Chinese culture spanning 400 years of history. There are 16th century temples, 17th century fortresses, 18th century churches, 19th century palaces and shop-house terraces of the old China Coast. Some of them are available as settings for special functions and theme parties.

Modern meeting facilities in the city include multi-purpose convention centers, auditoriums, theaters and a sport complex, all offering meeting space for groups from fifty to five-thousand. Some of the venues are also good for exhibitions. Accommodations in Macau offer a broad range of accommodation from three, four and five star properties.

“You won’t find any famous company from the US or Europe that doesn’t have its regional headquarters close to here, less than three hours travel time to Macau,” says Wolfram Diener, vice president of conventions and exhibitions for Venetian Maau Ltd. “The corporate meeting business is really emerging. There is a lot of franchising going on; the potential is just huge. In America, the meeting business is reoccurring, once a year. This is starting now here. And there is more need; they need to hold meetings here because dealers are building their networks and infrastructure.

Currently the main Macau hotels that would cater to the US market are the Westin Resort, Mandarin Oriental and Landmark. US planners will likely begin hearing the call of Macau in earnest later in 2006 and 2007, as international brands such as Wynn Macau, The Venetian, MGM Grand, Shangri-La, Four Seasons, Intercontinental, Cosmopolitan, and Dorsett continue rolling out brand new product in the city. New developments in Macau will double the available rooms by the year 2007/2008. In 10 years’ time, available rooms will increase from 11,042 at the end of 2005 to 37,614.

The old Macau consisted of a lot of day trippers from Hong Kong who came to gamble. The Sands Macau was the first foray by the Vegas-based Sands gaming giant into Macau, in 2004, after the city went back from Portuguese to Chinese government control. Now the Sands is expanding its presence in an enormous way with the Venetian Macau, which will open in June 2007.

“We’re now bringing the Vegas experience to Macau,” says Eric Velo. American vice president of sales for Vegas Sands Corp. “What we’re doing here eclipses everything we’ve ever done. The Venetian will be the anchor of the COTAI Strip, what we call ‘Asia’s Las Vegas.’ The idea is to replicate the Vegas strip. What Vegas offers and what Macau is now offering is the full array of options, including multiple hotels at multiple price points. We’re bringing luxury here – and it’s not just us.”

The Macau Government Tourist Office hosted a MICE familiarization group in November and plans additional trips in 2006, as well as exhibiting at IT & ME. It also advertises on CNN.

HONG KONG NEWSWIRE

In December, Hong Kong's second convention and exhibition center, Asia World Expo, opened on Lantau Island adjacent to the Hong Kong International Airport. AWE offers more than 700,000 square feet of meeting and exhibition space including almost 500,000 square feet of contiguous exhibition space and a plenary hall/arena capable of seating up to 13,500 delegates for a general session… The new Four Seasons Hotel Hong Kong on Hong Kong Island has two ballrooms and seven meeting rooms, the largest of which can accommodate 535 delegates or 460 for banquets… The new Hong Kong Disneyland Hotel on Lantau Island has three function areas that can be broken up into 16 meeting rooms. Its main ballroom can accommodate up to 575 guests for a banquet or 885 delegates for a plenary session… The recently opened Lanham Place Hotel also has a wide range of meeting space available… The Hong Kong Convention and Exhibition Center announced expansion plans that would add 200,000 additional square feet of meeting and exhibition space… Exciting new attractions in Hong Kong include Ngong Ping 360, where guests can enjoy a stunning journey on Ngong Ping Skyrail, a 5.7 km cableway crossing Lantau Island from near the airport to Ngong Ping Village, a Chinese architectural themed village with unique meeting and function venues and also easy access to the famous Giant Buddha and Po Lin Monastery. Ngong Ping 360 opens this summer… Also opening this summer will be the Hong Kong Wetland Park, a new ecotourism initiative that is adjacent to the Mai Po Marshes. The park provides a range of galleries, displays and interpretive stations where visitors can learn about the area’s unique wetlands as well as explore 60 hectares of outdoor wildlife habitats. Hong Kong Wetland Park offers a unique venue for functions, retreats and meetings including a 200-seat theater and other meeting facilities… The Peak Tower at Victoria Peak looking down on Hong Kong and the harbor is getting a facelift and will soon feature a new 360-degree observation deck for events with a major impact… Accor has signed a management agreement for a new 440-room Novotel Citygate Hong Kong, located in the new Tung Chung business centre. It is scheduled to open early 2006.

FAST FACTS

TRANSPORTATION: Hong Kong is easily accessible from all corners of the world with more than 1,900 international flights per week passing through Hong Kong International Airport.

Hong Kong is the main gateway to Macau from North America.Currently air service directly into Macau is on a connection basis via Taipei. (It is expected that VIVA Macau, a new Macau-based low cost airline, will begin operations in Summer 2006, and eventually inaugurate services to a network of regional and long haul cities across Asia, the Middle East and Europe.)

CURRENCY: The Hong Kong dollar is tied to the US dollar so there are no exchange rate fluctuations that can adversely impact an event budget.

In Macau, the Pataca is the official currency. It is linked to the Hong Kong dollar, which is accepted as currency in Macau. Roughly 8 Patacas is equivalent to one US dollar.

SECURITY: Hong Kong and Macau are known as safe, clean, friendly and secure cities. English is an official language of Hong Kong and is generally used is trade, tourism and commerce in Macau, as well.

HONG KONG ATTRACTIONS: On Hong Kong Island the most famous attractions are the Victoria Peak Tram and the Peak itself; Stanley Market and Murray House and the Maritime Museum also in Stanley; Aberdeen Harbour; the nightlife districts of Lan Kwai Fong and SoHo; and the architecture of the Central and Wanchai districts.

On the Kowloon Peninsula, the main attractions include the shopping district of Tsim Sha Tsui; the unique Jade, Flower and Bird markets; the Hong Kong Cultural Center; the Star Ferry to Hong Kong Island; and the Avenue of the Stars.

The Giant Buddha on Lantau Island and the Hong Kong Heritage Museum in the New Territories are also Hong Kong highlights, as is the new Hong Kong Disneyland for certain visitor segments. Hong Kong also has a wealth of spiritual sites such as monasteries or temples for Buddhists, Taoists and Confucians that are of unique interest to western visitors.

Plus: Hollywood Road, Hong Kong Museum of Art, Hong Kong Museum of History, Space Museum, Ocean Park

MACAU ATTRACTIONS: The historic center of Macau was awarded UNESCO World Heritage status. It includes a diverse group of churches, temples, a theater, a lighthouse and a cemetery.

MACAU NEWSWIRE

Shangri-La Hotels and Resorts announced a management agreement to operate the 500-room Shangri-La Hotel, Macau, and the 1,000-room Traders Hotel, Macau, both opening in 2008. The properties will be located on the Cotai Strip… Mandarin Oriental Hotel Group will open its second luxury hotel in 2009. The 2.6 million square foot mixed-use project features 210 guestrooms including 42 suites, a 4,000-square-foot ballroom and four additional fully-functional meeting rooms and a business centre… Four Seasons Hotel Macau will feature 400 hotel rooms and up to 600 vacation suites. The development will also include a fashion mall integrated into the Grand Canal Shoppes at The Venetian Macau… Wynn Resorts (Macau) is scheduled to open in Autumn 2006. It will include 600 hotel rooms, 460 deluxe rooms, 120 suites, 20 luxury suites and six restaurants… The new 1,000-room Grand Lisboa will be linked to the existing Hotel Lisboa by an underground walkway. It will boast a five-floor casino… The 24/7 Macau Fisherman’s Wharf opened in December 31, 2005 and is a five-minute walk away from the Macau Ferry Terminal. It combines entertainment, retail, food, hotel, marina, convention and exhibition facilities in one place… The Crown Macau hotel, due in Taipa in 2007, is to include 227 rooms and feature 200 gaming tables and 1,000 slot machines… MGM Grand Macau will open in the second half of 2007 and house 600 rooms, suites and villas, a casino including 300 table games and 1,000 slot machines, as well as nine restaurants... The $8 billion City of Dreams, expected to open in 2008, will offer a mix of luxurious resort accommodations combined with an underwater casino hall; two blocks of deluxe service apartments; two four-star hotels and one five-star hotel with a total of 2,000 guestrooms; a shopping mall; and a performance hall/theatre with 4,000 seats.



Macau Convention & Exhibition Association

Tel: (853) 714079, 6363318

Tel:(853) 714079


Macau Fair & Trade Association

Tel: (853) 976199

Email: mfta@macau.ctm.net

http://www.macaufta.com/index.asp


Hong Kong Tourism Board

Suite 2050

10940 Wilshire Boulevard

Los Angeles, CA 90024-3915

1 310 208 4582

fax 1 310 208 1869

http://www.discoverhongkong.com/

Hot Destinations 2005 (Incentives and Meetings International Magazine)

Originally published in 2005

By Bob Andelman

World events have a way of altering travel plans every year. In 2001, the 9-11 attacks on New York City and Washington, DC, brought air travel in the United States to a halt, drastically altering Americans’ attitude about flying overseas.

In March 2004, ten bombs exploded in four packed Madrid commuter trains, forever affecting the business and holiday plans of Europeans.

And the tsunami that washed over coastal Southeast Asia, killing more than 200,000 in the final days of 2003, cast a pall over what was a growing corporate meeting and incentive travel destination.

With the tsunami tragedy still on the front pages of newspapers around the globe, Incentives & Meetings International turned to corporate travel experts in the U.S., United Kingdom and Europe to find out where the hottest and most popular destinations in 2005 will be. Because business -- and the wanderlust of business travelers -- will always persevere.

“People have come out of the period when they were afraid to go,” says David Hackett, UK chairman of BI. “They say to us, ‘The last time we traveled was pre-9-11. What’s new? We want to come back with a difference.”

Americans are slowly returning overseas, although in small numbers and usually to tested, popular places with lots of amenities. Major European cities offer this; in Spain, while Madrid may be avoided, the dollars are going to sunny coastal cities such as Marbella.

“In Europe, Spain remains the number one destination for groups,” says Roger Tondeur, CEO of MCI Group S.A. in Geneva, Switzerland. Tondeur is also president of the Society of Incentive & Travel Executives. “And Barcelona is number one in Spain. But there are some new destinations coming up in Spain, including Zaragoza, which is the venue of the 2008 world exhibition. In Bilbao, there is a new Guggenheim Museum. And Valencia will be the site of the 2007 Americas Cup.”

Tondeur says he’s seeing greater interest in Eastern European countries, as well. “Budapest, Prague and now Warsaw are all being requested. In a lot of these countries, they are building Four Seasons, Hyatts and Inter-Continental hotels. The appeal is the previously unseen.”


Mediterranean cruises – offered by at least a dozen lines – are popular for incentive trips because they typically offer multiple ports over an eight-day itinerary.

In the South Pacific, Tahitian cruises are viewed as being safe, motivational, and working well as a great incentive for performance. The Tahitian islands conjure up a dreamy, exotic performance for many.

Undiscovered gems, according to Tondeur, include Costa Rica, Guatemala and Nicaragua in Central America, and Vietnam and Laos in Asia. “Some business is also starting to come back to Libya,” he says.

Grant McPhee handles the Asia Pacific region for Carlson Marketing Group. He, too, cites “the emergence of Vietnam & Cambodia as incentive destinations,” a development that Americans might find surprising.

Hackett says that the hottest incentive and meeting destinations among his clientele in the coming year will be Dubai, Mauritius, India and Southern Africa.

“Those four destinations have become hot for us. Perhaps the most interesting is Dubai because with Emirates long distance, this is now a direct route from the US,” he says. “With the rapidly expanding choice of hotels, including some outstanding properties for both incentive and business meetings, I am sure that this will be a destination of choice for the future. It offers complete contrast to anything within the Americas.”

Safety remains an issue, of course. But Hackett credits Dubai tourism officials with accomplishing “a fantastic job to make people forget their location.” He points to the Kingdom’s $10 million fund for luring the global travel media to Dubai to see in person what all the fuss was about.

“They got so many column inches that people forgot where Dubai was,” he says. “Ten years ago it wasn’t on UK planners’ lists. Now every hotel is represented there. They have built incredible hotels, like Hawaii did. They built them to be themed and extraordinary, as Atlantis and Disney have done. Medinat Jumeirah is a complete destination in itself – 18 restaurants, bars, nightclub entertainment, a shopping plaza, enormous conference facilities, indoors and outdoors. It’s unrivaled. Unless you go to somewhere like Vegas, you won’t find a hotel as comprehensive and extraordinary.”

According to Hackett, Dubai’s Royal Mirage has the same visual impact on guests as the Bellagio or Venetian. And Burj Al Arab is a huge hotel built in the shape of a spinnaker sail. Every suite – and it is suite-only – is 160 square meters, split-level. One restaurant is subterranean; another is suspended off the side of the building.

“These are world-class hotels made for incentive programs,” Hackett says.

As for South Africa, Hackett acknowledges that the bombing of a Planet Hollywood in Capetown has diverted business travelers from that city. But he adds that Zambia, Botswana and Mauritius have been untouched by international politics.

“These are safe destinations,” according to Hackett. “We live in a world where, as a planner, I have to say, nowhere gives you perfect safety. Who would have guessed at the bombings in Bali or Madrid? We’ve lived with terrorism for longer than Americans have. If you want to go in pursuit of somewhere different, there are considerations. Risk is still a factor. We all accept corporate responsibility when we plan these.”

Somewhat ironically, Hackett says that his audience wants incentive trips that offer adventure.

“They no longer want to do coach site-seeing,” he says. “You know: ‘On your left is a cathedral, on your right is an ancient monument.’ They’re looking for an experience. In Africa, we take them on the banks of the Zambezi – kayaking or white water rafting below Victoria Falls. These are exciting. From that base you can also go game viewing in Botswana. It’s a magnificent experience.”


Dennis Pinto knows East Africa and India. As managing director of New York-based Micato Safaris, a destination management company specializing in leading tours into those areas, he says they are rising in international esteem and attractiveness.

“We are seeing a tremendous amount of consumer demand for both Africa and India,” Pinto says. “For the first time in over a decade, corporate incentive groups are traveling to India. Virtually every incentive-caliber property in India is sold out for 2005 in spite of significant new building in the last two to three years.”

Pinto responds to increasing demand for incentives featuring a strong adventure component, whether it’s ballooning in East Africa, game ranger training in South Africa, or hiking in the foothills of the Himalayas in India. He attributes this to the increasing number of baby boomers now winning these trips.

Not that these trips are a snap.

“The first and greatest challenge is to choose the right DMC,” Pinto says. “Unlike domestic travel or even programs to the Caribbean and Europe, exotic destinations require a far greater reliance on a DMC. The right DMC has the connections to make things right when things inevitably go wrong. An inexperienced DMC can jeopardize the success of the trip.”

Other challenges include: securing sufficient airlift to the destinations, especially Africa and India, where there is a shortage of air capacity, and currency fluctuation. The right DMC can properly hedge dollar/local currency exposure and/or secure guaranteed rates in dollars to maximize value for program organizers.

Undiscovered gems in these areas include Kenya’s Lamu Springs, an island destination in the Indian Ocean that is blissfully small, devoid of cars, and life moves at the pace of the many donkeys that are used there. In Tanzania, Tarangire National Park is a 525-square miles of wild, unspoiled land with huge herds of elephants roaming the vast savannah. Pinto calls Botswana “one of Africa’s best-kept secrets. With its abundance of wildlife and scarcity of people, it is a natural paradise ‘discovered’ by the discerning traveler only about a decade ago.”

For Kenya, the Mara Safari Club and Kichwa Tembo camp in Maasai Mara are popular destinations. At the exclusive Mount Kenya Safari Club, visitors can walk in the footsteps of Sir Winston Churchill, Clark Gable and Mick Jagger and be given the celebrity treatment themselves. In Mozambique, an ideal program would combine bush and beach, such as Indigo Bay and Sabi Sabi.

Hackett has a bold, blunt assessment of India, an up-and-coming, exotic destination that many Americans may not feel is ready for primetime.

“India is a tough destination to go to by yourself. It’s smelly, it’s chaotic,” he says. “And if you go to India, you’re likely to get some stomach bug. All those prejudices are true. But if you go on a 5-star program with a group, you can minimize those. If you’re in top hotels, there are tight hygienic controls. The top issue is food and toilets. Is the food good to eat? And are the washrooms going to be acceptable? Going by yourself you won’t have that care factor, that detail. We just came back from a program in India for BMW dealers. These guys can go where they want in the world. When we launched India, there was a lot of hesitancy from the group. It took us a while to persuade them to embrace the idea. But the post-event feedback was that it was the best thing they’ve ever done. Yes, they confronted the harsh reality, the poverty, and the many issues of India. But the reports were fantastic. If you book Bermuda, expectations are very high. When we booked India, expectations were very low. But their experiences of it were extraordinary.”

In years past planners couldn’t offer India for incentives. But government and business interests there believe that the world is prepared to pay a premium to see the wonders of the world and major investments are being made in modernization, renovation, facelifts and new hotel construction.

“Amarvilas – near the Taj Mahal –is absolutely beautiful,” Hackett says. “Fabulous gardens, swimming pool, reflecting pool, courtyards with fountains – it is something Europe cannot afford to build. Every single bedroom has direct sight of the Taj Mahal. One of the Seven Wonders of the World is a pretty good hook for an incentive program.”

Karen Newberry, an international destination specialist for Maritz Travel Company, says that her clients are more willing to travel further from home than in recent years. “The problem in Europe is the exchange rate with the euro makes those destinations very expensive,” she says. “Italy is really expensive, but I still have clients going there. We have clients who love doing the Tuscany area. But they’re getting away from Rome, Florence and Venice.”

The dollar stretches further in Switzerland, so places such as the Victoria-Jungfrau Grand Hotel and Spa Interlaken, are drawing fresh eyes.

“Montreux is like the French Riviera of Switzerland,” Newberry says. “It has different things you can get to quickly – mountain excursions, vineyards and wineries.”

Australia remains popular with Maritz clients.

“The biggest challenge is the airfare,” Newberry says. “A lot of clients like to put their people in business class, which means a much higher budget.”

Fijian cruises are also on the rise this year.

“Fiji is a destination that, in the past, has been limited to wealthy people with plenty of discretionary income,” Newberry says. “Over the past few years, a cluster of hotels has been built on the main island. There is a new Hilton and a Sofitel. There are also plans for a new Marriott. In the Coral Coast, the Shangri-la has gone through a renovation to be more Fijian in style. A brand new Inter-Continental Hotel will open in 2007 with a Vijay Singh golf course. You won’t meet friendlier people than the Fijians. They’re so service-oriented. They want to help and show you their country. Everything is clean and they are proud of their heritage.”

Tondeur reports more emphasis being placed on activities that communicate company values and culture. “Companies are getting away from the fantasies, the fighting, and adventure and into activities that mean something, that are in tune with the brand,” he says. “It could be building a village or a children’s playground. You are donating, doing good in the neighborhood.”

Spa Treatments continue to grow in popularity with increasing male participation – often to the detriment of golf, says McPhee.

“Our clients are also looking for destinations that offer events or touring experiences that give participants a stronger sense of the local culture and history,” he says. “We want our clients to feel rewarded and pampered but we also like to them to develop an understanding of the destination and it’s culture as we believe that this enhances the overall experience and creates ongoing recall. When we are developing incentive travel programs, we are also finding an increase in demand for optional tours and free time from our clients. This is giving each participant more flexibility and allowing them to individually personalize their itinerary to their own tastes.”