Slide1: Yours Truly, Tan Siew Hoon


Market Overview : Market Overview Population: 26.64 Million (as of May 06) Department of Statistics Malaysia Population Breakdown: Malay 50.4%, Chinese 23.7%, Indigenous 11%, Indian 7.1%, others 7.8% (2004 est.) Drivers of Economy: Chinese population Total Visitors to Australia (from 149K- 136K) : 8% decrease Total Visitor Nights to NSW (from 669K to 936K): 39.9% increase High Repeat Visitorship to Australia: 72%


Malaysian Government & Economy : Malaysian Government & Economy Government: Prime Minister Abdullah Badawi, under Ruling Party of Barisan National Economy: 5.9% in the 2nd quarter of 2006. Exceed 1st quarter growth of 5.5% growth (Oct 06 Department of Statistics Malaysia) BUT Unfavourable Exchange rate 1 AUD= MYR 2.64


Consumer Trends : Consumer Trends Price/ Value Conscious Longer length of stay (from 14.5N to 24.5N): 69% increase Increasingly late bookings (2 weeks) Internet savvy, but still reliant on print media and travel agents. 79%** rely on agents as key sources of information 42%** rely on travel promotions/fairs as key sources of info in planning trip 5th Highest Ave Spent (A$2278) in NSW across ALL international Markets ** MasterCard Index of Travel Survey 2nd Half 2006)


Consumer Trend- MATTA Travel Fair : >90,000 visitors RM $90M Sales Destination Competition Evergreen - China, Hong Kong & Australia New - Japan and Korea Renewed interest -UK, Europe, US Increase outbound travel from suburbs,- Eg Penang MATTA Fair - 41K visitors, RM25 million sales; Australia : Top 5 The next MATTA Fair: March 16- 18, 2007 Consumer Trend- MATTA Travel Fair


Trade Update: Aggressive NTO Competition: Trade Update: Aggressive NTO Competition NTOS (Singapore, Taiwan, Macau and Turkey Tourism Boards) focus on thematic experiences & events HK & KNTO: Targeting Muslim segment with buyer-meet-seller session, trade & media famils. British Tourism: Offering tactical funding for Visit Britain campaign


Trade Updates : Trade Updates Outbound Travel: Traditionally dominated by Klang Valley players Holiday Tours MSL Agent Cluster GEM Travel Mitra Sunway Group Focus FIT Focus Niche Market Mass Market M’sian Harmony GTT Excellence Hols Incentive Mayflower Harpers BMC Prime HTT Falcon Holiday Tours


Aviation Update: Aviation Update Flight Frequency to Sydney- 58 weekly flights- as of July 06 Direct Flights: 20x weekly (MAS 14, Austrian 6) Indirect Flights (weekly): SQ : 21x Qantas 14x British Airways 7x RBA : 3x Austrian Airlines: terminating flights from KUL to Sydney from Mar 07 onwards. MAS -Virgin Blue Agreement: Seemless connectivity (30 Aug 06)


Aviation Update: Aviation Update Low Cost Carrier: Air Asia 16M Customer base Carried >20M customers as of Aug 06 Taken over 96 (total 118) of MAS’ domestic routes as of Mar 05. Flies to Regional destinations (Bali, Bangkok, Chiangmai, Hatyai, Hanoi, Manila, Phuket, Hanoi) Free seats and low price strategy


6 Key Objectives in Malaysia Market : 6 Key Objectives in Malaysia Market Trade Education & Product Development to increase depth of experience Increase length of stay in Sydney NSW Increase dispersion to Sydney Surrounds with min 1N stay in each region Increase Spend in NSW Develop new product experiences via market segmentation Develop partnerships between agents and NSW suppliers


Key Challenges & Action Plan in Malaysia Market : Key Challenges & Action Plan in Malaysia Market


Slide12: All Australia Supplement Objective: Increase Depth of Experience & Regional Dispersion Advertorial in the Star Strategy: Integrated Best of Australia Campaign with PR/ Media Focus on Thematic Experiences


Slide13: BOA Family Coupon Booklet offering discount for 1st child Consumer Brochure Objective: Increase Depth of Experience & Regional Dispersion Strategy: Integrated “Best of Australia” Campaign Focus on Family Fun & Best of Sydney City & Country Tactical Package with Min 2N Stay in Region


Slide14: A major break-through on prime time TV featuring foreign destination, 1.2 million audience Malaysian Celebrity endorsement Total encompassing campaign of : TV broadcast , Print publicity, Online exposure , Consumer engagement via contest Call to Action : Best of Sydney Australia tactical Campaign Objective: Increase Depth of Experience & Regional Dispersion Strategy: Integrated “Best of Australia” Campaign with Travelogue Featuring Famous Malaysian Celebrities


Slide15: VJP: First Ever Malay Media Journalists (4 pax) to Sydney (July 06) Objective: Develop New Market Segment Article in Harian Metro Article in Harian Metro Article in Mingguan Malaysia Strategy: Muslim Market - Raise profile of Sydney as a Muslim-friendly destination


Slide16: Article in Harian Metro Article in Harian Metro Objective: Develop New Market Segment Strategy: Muslim Market - Raise profile of Sydney as a Muslim-friendly destination


Slide17: Objective: Formalise partnerships for the development and promotion of Sydney NSW Ads in Star Consumer Flyer Strategy: Strategic Partnerships with Holiday Tours & MasterCard International


Market Opportunities – Why Continue to Invest in Malaysia : High Affinity & Familiarity - Repeat visitation (72%) / Easy to convert 69% Increase in Length of Stay (from 14.5N to 24.5N) Good Spend: 5th Highest average expenditure per visitor (A$2277) spent in NSW Highest TIEV (A$567M) in year 2006, even with decreasing number of Malaysian visitors Strong agents support ** June IVS 06 Market Opportunities – Why Continue to Invest in Malaysia


Market Opportunities – Why Continue to Invest in Malaysia : Market Opportunities – Why Continue to Invest in Malaysia RM15 billion Infrastructure projects by Government (9th Malaysian Plan) Untapped market potential Emerging middles class Malay segment (almost 2 million Urban Malays). High propensity to travel but lacks understanding. Average annual 5.1% growth from 2006- 2015 by TFC June 06


How You Can Be Involved! Upcoming Market Opportunities- Jan- Dec 07: How You Can Be Involved! Upcoming Market Opportunities- Jan- Dec 07