Northstar

TWA 7 Feb 2012

Issue link: https://read.uberflip.com/i/88186

Contents of this Issue

Navigation

Page 4 of 7

DESTINATION www.travelweeklyweb.com Sharing knowledge on the hotel industry in KL Dato Eric Lim,the managing director of Cititel Hotel Management Sdn. Bhd. (CHM Hotels), has been in the hospitality fraternity for four decades. He joined CHM Hotels, a subsidiary company of IGB Corporation Berhad in1996 to spearhead the Cititel brandname and the development of hotel properties for the Group. On oc cupanc ies in Kuala Lumpur: The occupancy in greater Kuala Lumpur ran an occupancy in the high 60s versus mid 60s in 2010. The fi ve- stars average rate surpass US$105 or above 10 per cent increase over 2010. Growth for four-star hotels ran in the low 70s versus mid 60s in 2010 and the average rate was approx. US$65. Hotels commanding a larger base of business traffic achieved a better rate of US$75 in 2011 versus US$65 in 2010. For the three-star, occupancy was in the mid 70s with an average rate of around US$60. On US and European markets: The USA represents a small fraction of the leisure traffic into Malaysia and Kuala Lumpur and therefore the impact is nominal. The European markets also decline. On Kuala Lumpur's appeal as a destination: As a destination, Malaysia and Kuala Lumpur continue to present great value as our rates are still the Views of Ritz-Carlton's GM On Ri t z - Carl t o n ' s p e r- formances: Ritz-Carlton targets to finish in the mid 70 per cent occupancy at an average room rate of RM500 (US$164). Its principal markets are Singapore, Hong Kong, Europe, especially United Kingdom and Australia. It is targeting markets like China, India and Russia. MICE business contributes 30 per cent. We are not revising our forecasts downwards as our primary source of business is regional , Middle East, and emerging markets. Our North American business is about five per cent of our base and European business remains steady despite the economic reports. On KL's growth: I believe I am the second longest serving expat GM in town, after nine years in Kuala Lumpur. KL has transformed as a destination during the time I have been in Malaysia- improving infrastructure, building world-class conference centers, and even new highways. During my tenure, the Ritz-Carlton has added a 25-room conference center, a second swimming pool, a new spa, and a residences tower, making the hotel an ideal destination for both business and leisure. ON what KL can do to make itself a leading destination for MICE: KL should do more to position itself as a first-world city, with world class hotels, and a superb infrastructure. Malaysia remains a high-value, politically stable, disaster- free nation and is an at tractive de s t ina t ion for bus ine ss and conferences. We have great night- life, cultural diversity, a world-class airport, and famous delicious food. Malaysia is so much more than a honeymoon or holiday destination most attractive in the region. With first class infrastructure, especially our super highways and scenic landscape, large shopping malls, diversity of culture and festival events and several large convention venues, both leisure, business and the MICE segments should not have a lack of choice. On performance of Cititel Hotel Group: For CHM Hotels (Cititel Hotel Group), the Malaysian Hotels enjoy nearly 60 per cent of its business from Asia with approx 80 per cent are on business. Our share of the European leisure market is relatively small. Our key markets shall continue to be in the Asia Pacific region with growth potential through online channel where by the reach has enabled us to tap into other longer haul business segments as well. – Dato' Eric H K Lim managing director, Cititel Hotel Management and I would hope to see the long- term opportunities for business balanced with the beautiful islands and beaches as Malaysia markets itself to the world. – Stephen Cokkinias , general manager of Ritz-Carlton Hotel MyCEB strives for growth in business tourism MyCEB, established in 2009 and fully operational in July 2010, has 34 staff. Its annual budget is RM50million with RM25 operational budget and RM25m to support the attraction and hosting of international business events. The establishment of MyCEB has been to accelerate the growth of the international business events market for all of Malaysia. Its recently introduced 'Kesatria1Malaysia' programme – 17 kesatrias (meaning knight or warrior) have been offi cially appointed to help develop the business tourism industry – a move welcomed by those in the industry who reckon that Kuala Lumpur and Malaysia has what it takes to attract high end visitors. KL has seen steady growth in hosting international conventions over the past 10 years – from 34 in 2001 to 79 in 2010. The opening of the Kuala www.travelweeklyweb.com Lumpur Convention Centre in 2006 helped strengthen KL's competitiveness internationally. MyCEB's goal is to grow business tourism arrivals from 1.2 million visitors to 2.9 million by 2020. Malaysia was recognised as the 3rd Most Price Competitive in the World (Travel & Tourism Competitive Report 2011, World Economic Forum). It has leaped a notable three spots to the 28th position in the latest ICCA, International Congress and Convention Association country rankings. Malaysia is also attracting larger international conventions. In 2010 it had the highest average attendance for international conventions with third 755 attendees after India and China. This has been largely due to its greater capacity to host larger events at venues such as the Kuala Lumpur Convention Centre and the Borneo Convention Centre Kuching. 07 FEBRUARY 2012 | TRAVELWEEKLY ASIA ■ | 5

Articles in this issue

Links on this page

view archives of Northstar - TWA 7 Feb 2012