EMERGING MARKET: EAST MALAYSIA (SABAH & SARAWAK)
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1 EMERGING MARKET: EAST MALAYSIA (SABAH & SARAWAK) Tourism Industry Conference 25 April 2016
2 Malaysia Landscape at a Glance: East Malaysia as a region of importance East Malaysia constitutes 20% of the overall Malaysia population. While less populated and cosmopolitan than Peninsula Malaysia, it is an area rich of natural resources. Total population of Malaysia: 29.9m* (Sabah 3.61 mil; Sarawak 2.64mil) *Source: Malaysia Department of Statistics, 2013
3 Malaysia Landscape at a Glance: Limited international flights; Direct air connectivity to SG Malaysia is directly connected to Singapore via 3 East Malaysian cities Kuching, Miri, Kota Kinabalu. City No. of Flights (One-way weekly service) One-way weekly seats Seat Capacity AirAsia SilkAir Malaysia Airlines Kuching 19 3,172 1, Miri 10 1, Kota Kinabalu Total (% of market share) 14 2,310 1,260 1, (8.8%) 7,198 3,600 1, *As at March 2016
4 Key GDP growth drivers to lead the way for East Malaysia s economic development 2 out of 5 Economic Corridors in Malaysia are based in East Malaysia Sabah Development Corridor and Sarawak Corridor of Renewable Energy By 2025, State GDP/capita by 3X State GDP by 4X >900,000 new jobs Major developmental projects announced as part of Malaysia s Budget 2016 to strengthen economic activities: development of Sarawak s toll-free Pan- Borneo Highway spanning 1,090-km which is expected to be completed in 2021 with an estimated cost of RM16.1 billion Commencement of highway construction work worth an estimated RM12.8 billion from Sindumin to Tawau in Sabah, spanning 706-km By 2030, State real GDP by 5X >1.6mil new jobs
5 The East Malaysian Traveller: Stays longer, spends more on Shopping and travels with families Leisure travellers constitute 72% of the total East Malaysia traffic to Singapore bigger proportion of leisure travellers compared to whole of Malaysia. The East Malaysia leisure traveller stays 1.02 days longer than the general Malaysia leisure traveller. Spends 64% of the total expenditure on shopping, more than the general Malaysia leisure traveller 92% of East Malaysia visitor arrivals are repeat visitors, of which 85% visit SG at least once in the last 2 years. More than half of visitor arrivals from East Malaysia travelled with their families (children & extended families). Source: STB Overseas Visitor Survey, 2014
6 Consumer insight studies show the potential of the East Malaysia leisure market MOTIVA- TORS LEARN NEW CULTURE WHY IS IT RELEVANT? There is some desire to know how the world lives Believes travel is key to children s exposure and enrichment; learning outside of the classroom VERBATIM STORIES Go check out other countries, see how they modernise and advance Travelling is a sort of self-improvement Must bring kids out to see (the world) because if we don t bring them, they will become frogs in the well. REJUVENA- TION Allows them to get away from the usual routine A way to pamper self & family, and de-stress It s a treat for myself Always working very tired To relax. Because there s stress from work and in daily life BONDING WITH FAMILY & FRIENDS Time for family bonding as parents have limited time with children Enjoyment and creating new memories with friends Source: STB Focus Group Discussions (FGDs), 2014 Improve bonding time with family. Spend quality time with them Happy because can be with family, go out with family
7 How can we tap into the East Malaysia leisure market? INSIGHT WHAT CAN WE DO? STRONG EMPHASIS ON FAMILY SENSE OF EAST MALAYSIA HAVING LIMITED VARIETY Focus on the learning/enrichment aspects; when travelling, the family not only enjoy and bond, the children get to learn too Showcase shared experiences rather than individual experiences Communicate novelty through creating awareness on new attractions or changes made to existing attractions Create desire for repeat travel by having something new to offer for every trip VALUE-SEEKERS As a price sensitive market, it is important to emphasize value, through bundled products, promotions to be tied to peak travel periods
8 Key engagements in FY15/16 KNOWING THE MARKET Identify target audience and understand consumer behaviour Develop channels & cultivate relationship with outbound travel agents Trade update session with SilkAir
9 Key engagements in FY15/16 MARKETING CAMPAIGN Build awareness and reach out to consumers through the right touch points Marketing campaign with key opinion leader, Aaron Aziz Focusing on family and long weekends travel Buying into the right touch points such as regional dailies
10 Key engagements in FY15/16 MARKETING CAMPAIGN Build awareness and reach out to consumers through the right touch points 52 Weekends Guide Showcasing the many events and activities held in Singapore in 2016
11 Key engagements in FY15/16 TACTICAL PROMOTIONS Partner trade stakeholders to create promotions targeting at East Malaysians 3 Bursts of Tactical Promotions with Singapore Airlines/ SilkAir 23% of tickets sold ex-kota Kinabalu and Kuching
12 Key engagements in FY15/16 TACTICAL PROMOTIONS Partner trade stakeholders to create promotions targeting at East Malaysians AirAsia Travel Fair (Kuching) 16 & 17 April Tie-up with AirAsia to offer Buy 2, less RM200 promo 84% increase in total sales over 2015
13 Upcoming Plans for FY16/17 OBJECTIVES Further penetrate the emerging market of East Malaysia; increase visitor arrivals and length of stay Deepen engagement and build a strong network of trade partners PLANS: 1. AirAsia Travel Fair (Kota Kinabalu) 30 April & 1 May 2. Trade updates in Kuching and Kota Kinabalu End July/ August 3. East Malaysia trade fam Early October 4. Continuation of marketing efforts
14 Trade Engagement Calendar FY16/17 ACTIVITY Buka puasa networking session (KL) Trade update session (KL) Trade update (BTMICE) Trade update (East Malaysia Kuching & Kota Kinabalu) In-market travel fair Trade fam (KL travel agents) Trade fam (Bumi travel agents) Trade fam (Corporate travel agents) Trade fam (East Malaysia travel agents) Trade appreciation dinner DATE End June Mid July End July July/ August August/ September September Late September Early October Mid November
15 Key contacts Winx Loo Assistant Manager STB Malaysia Serene Woon Area Director STB Malaysia
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