With a new unit set up to look after the corporate and business events market, Tourism Australia expects more growth from Asia. Faith Chang talks to industry players about their expectations.

While Australian travel management companies (TMCs) have forecast good business from their Asian markets in 2005, they say a more consolidated approach and specific strategies are needed if significant growth is to be seen from these markets.

The formation of Tourism Australia’s new body – Tourism Events Australia (TEA) – is therefore timely as local TMCs will receive a boost from key strategies outlined by TEA to improve business arrivals.

At Dreamtime 2004, Australia’s premier incentive travel trade show, held between October 28 and November 2 last year in Sydney, Tourism Australia’s (TA) former acting managing director, Mr Ken Boundy, announced TEA would focus on two key areas: business events – including corporate meetings, incentive industry and associations market – and major events.

Mr Boundy told BTN Asia-Pacific new initiatives were also being worked out to drive corporate travel from Asia into Australia.

He said: “Business travel from Asia has grown 10 per cent in 2004/05, and we see markets such as Japan, South Korea, Taiwan, Hong Kong, China and even Singapore bringing large numbers of corporate travellers.

“To help assist growth in this area, a TEA steering committee including representatives from various trade associations and the events industry has been established to develop a discussion paper on the role and scope of TEA in the new Tourism Australia structure.”

Key corporate travel target markets for TA include Thailand, Taiwan, China, Singapore and South Korea.

Local TMCs said one of the issues that had to be resolved to grow the Asian market was an understanding of cultural differences that influence travel policies and working styles.

Travelogic director, Mr Craig Smith, said although it was much easier to work with his Asia-Pacific counterparts than those in North America due to proximity, there were many hurdles Australia’s TMCs needed to overcome.

He said: “Cultural issues and differences in the way corporations in Australia and those in Asia manage travel is highly important and must be dealt with before any substantial growth can occur.”

Mr Smith added because more clients were tending towards a more regional approach to corporate travel management, there were several issues TMCs needed to iron out with their Asian partners.

These include making 24-hour service available to clients, service level agreements and negotiation with overseas suppliers such as hotels and car rental companies.

“Overseas clients must understand there are differences between how air fares are negotiated here in Australia and in Thailand, for example, and if Asian clients demand a more regional approach to travel, they have to make some important changes to policies that take into account these differences in the region. A more centralised approach is needed between TMCs in Australia and our working partners in Asia.

“Because travel policies, pricing policies and supplier nature are different across cultures, an understanding of the various differences is vital so the solution put forth by a TMC to the client is feasible.”

Mr Smith expects business travel to grow between 10 and 15 per cent from Asia in the next 12 months based on referral business received from other Australian clients.

TA general manager, North Asia and business tourism, Mr Johnny Nee, admitted Australia did not do so well on some practical dimensions in Asia for the business events markets, most notably flight capacity for larger groups – both international and domestic. Visas were sometimes difficult to obtain for some Asian countries.

Other barriers include a lack of knowledge of Australia beyond the east coast gateways and a perceived over-familiarity based on previous visits to Australia.

Mr Nee said if these factors were taken into consideration, good education on the range of products available could result in a programme that would meet required needs.

However the perception of Australia as a “safe” destination is an advantage in Asia.Sydney’s meetings industry has also stepped up its efforts in Asia.

The Sydney Convention and Visitors Bureau and the Sydney Convention and Exhibition Centre had teamed their efforts in the opening of their joint office in Hong Kong, headed by Ms Sinead Yeo.

Ms Yeo will spearhead the two bodies’ efforts to draw more Asian businesses to Sydney by focusing on corporate meetings and incentive travel.

Incentive arrivals from North Asia dropped by 9.2 per cent between 2002 and 2003, and travel from South and South-east Asia has decreased by 6.7 per cent, bringing a total dip of 7.8 per cent in business travel from Asia in 2003 compared to 2002.

Confirmed business between March 2004 and June 2005 is estimated at 21,000 passengers with a total spend of A$46.2 million (US$35 million).

Other concerns corporate travellers have about Australia include the lack of ability, knowledge and capacity of some travel agents, the strength of the Australian dollar and the travel trade’s lack of understanding of the corporate end-users’ psychology.

Another challenge is the competition from Asian destinations.