uftaa congress kuala lumpur friday · uftaa congress kuala lumpur 19 april 2013 friday. session 4...
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UFTAA CONGRESS KUALA LUMPUR
19 APRIL 2013
FRIDAY
SESSION 4SUSTAINING THE TRAVEL INDUSTRY AND THE
ENVIRONMENT
A look at how Travel Agents can contribute back tothe environment as well as the society whilemaintaining a profitable business. The 2002 CapeTown Declaration on Responsible Tourism inDestinations stated that responsible tourism isabout “making better places for people to live inand better places for people to visit” ResponsibleTourism is protecting the ecological & social aspectsof a particular locale, at same time creatingsustainable tourism, providing economical benefitsto all parties involved.
SESSION 4MODERATOR
MR PHUA TAI NENGChief Executive Officer, MATTA
Mr Phua Tai Neng is currently the ChiefExecutive Officer (CEO) of MATTA. Mr Phua aswith the Government for 15 years and afterleaving the Government, he was managing theaffairs of a high profile sports association in thecountry.
SESSION 4
PANELIST
RESPONSIBLE TOURISM – FOR THE FUTURE
Y.BHG DATO’ DR. HJ AZIZAN NOORDIN
Deputy Director General,
Tourism Malaysia
Dato’ Dr Haji Azizan Noordin began hiscareer in the tourism and hospitality industry,Tourist Development Corporation Malaysia nowknown as Malaysia Tourism Promotion Board asearly as 1978 as a Tourist Officer.
Today, after 34 years in the civil service,Dato’ Azizan is still serving but more experienced.His advancement from rank and file for the past 34years had amassed a wealth of experience andknowledge that is indeed beneficial to the tourismindustry as well as the rakyat at large. He is nowthe Deputy Director General (Planning).
RESPONSIBLE TOURISM FOR THE FUTURE - THE MALAYSIA EXPERIENCE
by:
DATO’ HAJI AZIZAN NOORDINDeputy Director General (Planning)
Tourism Malaysia
RESPONSIBLE TOURISM FOR THE FUTURE 8
OBJECTIVE
9
11
2012 MALAYSIA TOURISM INDUSTRY ACHIVEMENTS
12
Achievement Total Achievement
20122020 Target
Foreign Tourist Revenue (RM billion) 60.6 168
# Arrival (mil) 25 36
Global Tourist Arrival # 9 Top 10
Global Tourist Revenue # 14 Top 10
Foreign Revenue (2011) 3rd (after manufacturing & palm oil)
Total Tourism Workforce (2011) 2.0 million
LEISUREPrimary and Secondary Market
EXPATRIATE MARKETSingapore, Thailand, Hong Kong, Vietnam,
UAE
ECO TOURISM UK, US, Germany, Scandinavia, Japan,
Australia, Korea and Hong Kong
WELLNESS TOURISMASEAN, Japan, Korea, Taiwan, Hong Kong,
West Asia, Australia, United Kingdom, Russia
EDUCATION TOURISMWest Asia, Indonesia, China, Korea , South
Africa
INCENTIVE TRAVELChina, Taiwan, Japan, Indonesia, India,
Australia, Korea
HOMESTAYJapan, Korea, Singapore, Netherlands, Australia
MM2HJapan ,Korea, India, Taiwan, West Asia, Bangladesh, Australia, UK, Indonesia
SPORTS ASEAN, Australia, New Zealand, Japan, Korea, Germany, UK. Scandinavia, Mauritius,
LUXURY/HIGH END TRAVELFrance, UK, Scandinavia, Russia, US, India, Hong Kong, West Asia
SHOPPINGASEAN, China, Hong Kong, India, Bangladesh, West Asia, Australia, New Zealand, ASEAN
HONEYMOONERSWest Asia, Italy, UK, US, China, Taiwan, India, Korea
TARGET MARKET
14
ECO-TOURISM
• It merely signifies running an industry which has a low impact on the local natural environment while reaping its economic benefits.
• It is about making “better places for people to live, and better places for people to visit” – the order of these two aspirations is critical. The characteristics of RT as defined in the Cape Town Declaration on Responsible Tourism (2002) are very generic;
RESPONSIBLE TOURISM FOR THE FUTURE
BEST PRACTISE IN MALAYSIA : HOMESTAY PROGRAM
Officially a tourism product in 1995, but recognized as a potential product for international product with the launch of the rural tourism master plan 2001
RESPONSIBLE TOURISM FOR THE FUTURE 16
Minimise Negative Economic, Environmental, And Social
Impacts
RESPONSIBLE TOURISM FOR THE FUTURE 17
• Offer visitors with the traditional lifestyle of the locals
• 159 villages in Malaysia with 3,424 houses (4,717 rooms)
• Total Homestay Tourist 2012 ~ 325,258(Domestic– 259,423 ; International – 65,835 or 23.3%)
• Average Rate – USD 40 including 3 meals daily, accommodation & cultural activities
• Rail Tourism & Agro Tourism
• Plant A Tree – 14,023 trees have been planted so far
Generates Greater Economic Benefits For Local People And Enhances The Well-being Of Host Communities, Improves
Working Conditions And Access To The Industry
RESPONSIBLE TOURISM FOR THE FUTURE 18
(Total Receipt)
Involves Local People In Decisions That Affect Their Lives And Life
Chances
RESPONSIBLE TOURISM FOR THE FUTURE 19
RESPONSIBLE TOURISM FOR THE FUTURE 20
TOP 10 VISITORS TO HOMESTAY
(Country) (Visitors) (Percentage)
Makes Positive Contributions To The Conservation Of Natural And Cultural Heritage, To The Maintenance Of The
World’s Diversity
RESPONSIBLE TOURISM FOR THE FUTURE 21
Provides More Enjoyable Experiences For Tourists Through More Meaningful Connections With Local People, And A
Greater Understanding Of Local Cultural, Social And Environmental
Issues
RESPONSIBLE TOURISM FOR THE FUTURE 22
PAT (Plant A Tree) PROGRAM
Plan A Tree project at homestays registeredwith the Ministry of Tourism Malaysia toencourage foreign tourists to plant a tree at thehomestay before leaving for their country.
Encourage repeat visits among tourists to comeback & witness the development of the treethat they had planted.
Culturally Sensitive, Forster Respect Between Tourists And Hosts, And
Builds Local Pride And Confidence.
RESPONSIBLE TOURISM FOR THE FUTURE 23
• 2008 - ASIAN MARKETING EFFECTIVENESS AWARDS
Gold Award - Best Long Term Marketing and Branding Campaign
Awards for the Malaysia Truly Asia Campaign
PATA GOLD AWARD
Marketing Media Awards - Travel Advertisement Broadcast Media
- "Visit Malaysia Year 2007" - Tourism Malaysia
- Marketing Media Awards - CD-ROM
- Travel Manual Interactive CD - Tourism Malaysia
TRAVELWEEKLY (ASIA) INDUSTRY AWARDS 2008
Best Ecotourism Destination
Best Brand Campaign for Tourism Malaysia's Visit Malaysia Year
2007 campaign
2009 - GUINNESS WORLD RECORDS
Mount Kinabalu's - World's Highest Via Ferrata
PATA GOLD AWARDS
Gold Award in the Marketing Media - Travel Advertisement Print
Media Category
-‘Malaysia : Truly Asia, Truly More With Every Visit. It Must Be
Malaysia.'
ASIAN MARKETING EFFECTIVENESS (AME) AWARDS, HONG KONG
Gold Award - Best Sustained Success (Malaysia Truly Asia)
DAS GOLDENE STADTTOR (THE GOLDEN CITY GATE)
INTERNATIONAL TOURISME BORSE (ITB), BERLIN
Gold Award - Malaysia : Truly Asia ‘Truly More' Print Campaign
Adrian Advertising Awards
to date: 4 Gold, 1 Silver &
5 Bronze
Accolades
RESPONSIBLE TOURISM FOR THE FUTURE 24
RESPONSIBLE TOURISM FOR THE FUTURE 25
ACHIEVEMENTSMalaysia has won threePATA Gold Awards 2012,Tourism Malaysia wonthe coveted PATA GoldAwards 2012 in thecategories of Marketing– Primary GovernmentDestination for its ‘AMillion Experiences toShare’ campaign andMarketing Media –Travel Poster for itsposters depicting theOrang Utan, Diving,Mount Kinabalu,Homestay and SitiKhadijah Market.
Thank You
RESPONSIBLE TOURISM FOR THE FUTURE 26
SESSION 4
PANELIST
RESPONSIBLE & SUSTAINABLE TOURISM – HOW IS IT REMODELLING THE INDUSTRY?
MR. STEVE NOAKES
Board of Director, Global Sustainable Tourism Council (GSTC), Australia
Steve Noakes has been involved in the AsiaPacific tourism industry for some 35 years. He is aleading regional advocate for mainstreamingsustainability into the tourism sector and hasworked as a senior consultant/advisor to theUNWTO, United Nations Environment Program,International Labour Organisation, AsianDevelopment Bank, World Bank, bilateral donoragencies and a number of national governmentsacross the region.
He has served on the Boards of NGOs such asthe Pacific Asia Travel Association, GlobalSustainable Tourism Council and Sustainable TravelInternational.
Responsible & Sustainable Tourism –
How is it remodelling the industry?
Steve Noakes
Topics:
Planet &people
Sustainability Demand GSTC Travel agency
groups
Thanks for the photo
Photograph by Kris LeBoutillier
Less is more at Castaway Resort on Koh Lipe island, ThailandGuests dine on fresh local fare while cozily
seated on breeze-fanned platforms.
http://travel.nationalgeographic.com/travel/countries/southeast-asian-beaches-photos-traveler/#/outdoor-dining-castaway-resort_21944_600x450.jpg
Nice planet.Good place for travel.
Asia & the Pacific
Image from Voyager 1 (1977)
Beyond our moon –7.25 million miles from Earth
Thanks NASA for the photo.
Humans on spaceship earth. Impacts & resource use
“Earth provides
enough to satisfy every man's needs, but not every man's greed.”
Mahatma Gandhi
http://gandhifoundation.org/
SUSTAINABILITYGanges River Festival
Photograph by David Lazar
Hindu pilgrims bathe in the Ganges hoping to wash away their sins.
http://travel.nationalgeographic.com/travel/countries/india-photos/#/shower-festival-ganges_6744_600x450.jpg
SUSTAINABLE TOURISM
CHAPTER 1
EMERGENCE OF SUSTAINABLE TOURISM
34
Tourism demand - continuous growth in post WW2 period.Expansion of Asia Pacific.
Green demand -Who wants responsible approaches to tourism?
Trip Advisor (2012) : 700+ US travellers surveyed
71%: will would make environmentally friendly choices this year
57% : “often” make eco-friendly travel decisions, such as their choice of hotel, transportation, or food source
41% “mostly” believe hotel claims to be eco-friendly, 32 % “rarely” do and 20 % “don’t know”.
21% would be “green believers” if they were able to see a hotel’s environmentally-friendly certification
61% rarely feel informed about whether hotels are truly eco-friendly – and 13% say they never do.
“Green initiatives are an increasing priority for hospitality businesses that are trying to reduce their environmental footprint”
Jenny Rushmore, Director of Responsible Travel TripAdvisor.
http://www.multivu.com/mnr/49260-tripadvisor-eco-friendly-travel-survey-voluntourism-go-green
Neilson (2012): 2012 Global Corporate Citizenship Survey28,000 consumers in 56 countries
Almost half of global consumers are willing to pay more for products from companies that show a commitment to social responsibility.
62% prefer to work for these companies
59% prefer to invest in these companies
http://www.brandchannel.com/home/post/Nielsen-Report-Corporate-Citizenship-040312.aspx
Consumers in Asia Pacific (55%) rate higher than any other region in willingness to pay extra for products & services from socially-responsible companies
Industry responding: TUI sustainability goals
Marketplace confusion on terms & ecoloabels
GSTC: The international body for :
1. fostering increased knowledge &understanding of sustainable tourism practices
2. promoting the adoption of universal sustainable tourism principles
3. building demand for sustainable travel
www.gstcouncil.org
GSTC programs:
International standardsettingDestinations
Education & trainingMarket accessAccreditation
Global sustainable tourism CRITERIA
• Sustainable management• Socioeconomic impacts• Cultural impacts• Environmental impacts (including consumption of resources, reducing pollution & conserving biodiversity and landscapes)
Hotels & Tour Operators criteria + Destinations criteria
So far, 15 standards have achieved GSTC recognised status
1. Travelife for Hotels and Accommodations
2. Austrian Ecolabel for Tourism (Österreichisches Umweltzeichen)
3. Biosphere Responsible Tourism
4. Certification for Sustainable Tourism (CST) for hotels
5. EarthCheck Company Standard
6. Eco-Certification Malta
7. Ecotourism Australia's ecotourism standard
8. Ecotourism Australia's advanced ecotourism standard
9. Ecotourism Ireland Certification Programme
10. European Ecotourism Labeling Standard (EETLS)
11. Fair Trade in Tourism South Africa (FTTSA)
12. Japan Environmentally Sustainable Accommodations International Standard (ESAIS)
13. Rainforest Alliance standard for tourism operations
14. SustainaProgram (STEP)
15. Travelife Sustainability System for Hotels and Accommodationshttp://www.gstcouncil.org/about/news-a-announcements/713-travelife-achieves-recoble Tourism Eco-Certification gnized-global-sustainable-tourism-council-status-for-its-tour-operator-and-travel-agents-standard.html
Examples of national travel agency organisations engaging with GSTC
http://www.asta.org/BusinessServices/content.cfm?ItemNumber=3652&navItemNumber=3732
October 5, 2010: ASTA Joins Global Sustainable Tourism Council.
Feb 4, 2013: Travelife Standard for Tour Operators and Travel Agents has achieved ‘recognized’ GSTC certification status.
UFTAA’s Mission Statement – an organisation that …
‘… enhances the world travel and tourism industry and a sustainable tourism.’
How can UFTAA continuously improve its leadership for:(i) sustainable business approaches by its members?(ii) catering to the growing global market for sustainable
tourism products?
Thank you
http://travel.nationalgeographic.com/travel/countries/india-photos/#/varanasi-train-station_6745_600x450.jpg
Varanasi Train StationPhotograph by Thomas Holton/Getty Images
Q & A
Session
NETWORKING BREAK
10.30 – 11.00 am
SESSION 5
AIR FORUM
The IATA Agency Program – “ Somethingold and new. This session will seek to inform onnew developments in IATA’s Agency Program(Resolution 800f – Agent Financial Standards)and something old (Resolution 850p – FinancialSecurity alternatives). What Travel Agents (andairlines) should know about the new criteriaand their ability to address IATA guaranteerequirements should the need arise”
SESSION 5PANELIST
AIR FORUM
MR. RAY HARTWEGDefault Insurance Program (DIP)
Ray has worked extensively on developing automation anddistribution systems for clients in Asia since 1988. He was formany years the Vice President of marketing for Aerotel – Air NewZealand’s GSA in The Philippines
As regional Director, Agency Accreditation Services forIATA for seven years, Ray was intimately involved in thedevelopment and implementation of IATA’s new Agency Programproducts in 40 Asia-Pacific countries. As supervisor of IATA’sAgency activities in Asia and the Pacific, Ray was uniquelysituated to develop an expertise in distribution unavailableelsewhere.
Ray held a variety of positions with Flying Tiger Line, at thetime the world’s largest all-cargo airline. His last position asManager, Pacific Pricing & Industry Affairs gave Ray extensiveexperience in the Far East as well as industry related activities.Ray is an alumnus of the University of Connecticut and theFletcher School of Law and Diplomacy (Tufts University) withextensive cross cultural experience having lived in Europe, NorthAmerica and several Asian countries.
Session 5: Air Forum - DIP
Raymond A. Hartweg
Director,
Travel & Aviation Risk Solutions Ltd. (TARS)
1997-2010 - USD17M (238)
What is a DIP? From Resolution 850p –Financial Securities
Objective
For Airlines -
To provide a familiar cover of up to 100% of airlines’ risk from the default of an IATA agent (bank guarantee equivalent);
For Travel and Cargo Agents -
To offer a cost effective alternative to expensive financial guarantees
Benefits for BSP AirlinesCoverage
Approx YY (9/16/35/45) days of losses for passenger
Approx XX (45) days of losses for cargo
Covers Agent’s current level of financial guarantee
(tailored to current practice)
Guaranteed timely payment (14-30)
Peace of mind and
Improvement in agent-airline relationship
Benefits for BSP AgentsLow cost alternative to meet IATA’s financial
requirements - reduces costs
Several Payment options, no mandated lump sum, improves cash flow (Q/SA/A)
Release of equity for business purposes - no deposit requirements nor liens on working capital - NO BANK GUARANTTEE
Tried & Tested Service - ThailandLaunched AUG 97Economic upheaval JUL 9798% of marketAll airlines participatedAgents – TMC + moreMarket share > 70%Claims ‘97-’02 – USD2.07M
(23)
Simplifying your Business
Current Approach Flawed & Failing
• BG & DIP fundamentally different instruments
• Too Complex
• Single market approach makes it less viable to insurers
• No spread
• Concentrated risk
• Limited volume
• Little or no growth
BG DIP
Bank Guarantee safer than insurance?•Bank Failures in USA – 2008-2012 (FDIC & Weiss Rating)
•301 with over USD1B in assets!
•USD677B in assets!
•Banks – low reserves ; Ins- 115%+
Two Telling Quotes:
•“Most insurance companies are smaller, sounder and safer than most banks…” – and
•“Unlike banks, they also tend to become more financially stable the bigger they get since the risks run by individual policyholders are not correlated.”
Source: FT – J. Gapper - 12Dec12
Banks exempt from review – insurer’s not – R850p
0
50
100
150
200
250
300
350
400
450
500
2008 2009 2010 2011 2012 Total
Banks
Insurers
A-rating requirement
• Limited supply (in any year less than 40 w/w
• Nearly all off-shore (MY exception)
• Being Rated -overrated (AIG 2008) – 85B+
• Ignores – good firms & local RE content
Cut Through Agreement
•No local responsibility (no retention)
•Ultimate Guarantor no relationship with
IATA – approval process local.
•Collect claim where?
•What procedures apply?
•Who makes this call?
Retention
•Insurance Regulations
•Local commitment
•Logical to vet locally vs. ultimate guarantor being off-shore?
•Negotiate with ??
A Way Forward•Consult – prior to taking action
•Risk Assessment & Management – What is assessment process? Avoid BIGGER is better mind-set
•Think beyond borders
•Transparent & Partnership role
•Keep it Simple – new P&S?
•3.5 to 9 pages
•15 vs 3 definitions! (2 contrary to R866)
•One-size-does-not-fit-all
•Timeliness (5 days)
•“Additional financial loss” – a deal breaker for insurers;
•If DIP in place of BG & covers same risk –why try to improve on terms?
Breaking Clouds ?
Risk Assessment & Cover
Cover Profile 2002 -11
Per Agent – Cap #1
MYR 1.89M – Ave Annual Default
MYR9.2M – Per Agent Cover
Per Annum – Cap #2
MYR7.4M – 2011
MYR30M – Annual Cover
Ave. Agent Default Size
USD42,571
44 Agent defaults/Year
0
5
10
15
20
25
30
35
Agent Annual
Cap #1
Cap #2
Five Questions To Consider
1. If your financial review is satisfactory – why do you still need to provide a financial guarantee?
2. Why are you not in a DIP? Why is there no DIP in my country?
3. Do I know the PSAA, my rights and my country’s financial criteria (hint in your Travel Agent Handbook)?
4. Do you know how to contact your TAC?
5. Is it time for an UFTAA-wide DIP?
JOIN THE BSP-MALAYSIA DIP NOW!
WHY JOIN RHB INSURANCE‘S
DEFAULT INSURANCE PROGRAM (DIP)?
LOWER COSTS SAVES YOU MONEY
NO COLLATERAL
FREES YOUR COMPANY ASSETS, IMPROVES YOUR BALANCE SHEET.
KNOWN FIXED COST
FITS INBUDGET PLANNING
PROTECT YOUR PRIVATE ASSETS
NO PERSONAL INDEMNITY OR DIRECTORS’ GUARANTEE REQUIRED.
PAYMENT FLEXIBILITY
THREE PAYMENT OPTIONS PROVIDE FLEXIBILITY AND MORE POTENTIAL SAVINGS
EASY ADMIN ONE-PAGE REGISTRATION, SINGLE INVOICE, MATCHING RECEIPTS
INSURANCE KNOW YOUR COSTS IN ADVANCE
ANY BSP-DIP AGENT CAN JOIN THE DIP!
THE DIP IS: IATA APPROVED Agent Association SUPPORTED BOTTOM LINE - SAVINGS
CONTACT RHBI NOW!oGET “NO-OBLIGATION” QUOTES!oASK A FELLOW AGENT ABOUT
RHBI TODAY!
EMAIL ALL INQUIRIES TO:[email protected]
Q & A
Session
NETWORKING LUNCH
12.30 – 2.00 pm
EXTRAORDINARY GENERAL ASSEMBLY
UFTAA GENERAL ASSEMBLY
• Approval of minutes of
General Assembly 2011
EXTRAORDINARY GENERAL ASSEMBLY
UFTAA GENERAL ASSEMBLY
• Finance Report
EXTRAORDINARY GENERAL ASSEMBLY
UFTAA GENERAL ASSEMBLY
• Discharge of Mandate
EXTRAORDINARY GENERAL ASSEMBLY
UFTAA GENERAL ASSEMBLY
• Reports
EXTRAORDINARY GENERAL ASSEMBLY
UFTAA GENERAL ASSEMBLY
• Elections
EXTRAORDINARY GENERAL ASSEMBLY
UFTAA GENERAL ASSEMBLY
• Deadline for recommendation
& resolutions
NETWORKING BREAK
4.00 – 4. 30 pm
EXTRAORDINARY GENERAL ASSEMBLY
UFTAA GENERAL ASSEMBLY
Resolutions &
Recommendations
CLOSING REMARKS BY
PRESIDENT OF UFTAA
MR. MARIO BEVACQUA
CLOSING COCKTAIL
7.00 pm
20 APRIL 2013, SATURDAY
POST CONGRESS EXCURSION TOUR TO THE STATE OF SELANGOR
8.00 am – Gather at the Lobby!
THANK YOU