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					                                           APAC News
                                                                                                             Q1 2009

Inside this Issue:                                           Top News
Top News ———————————————-                            1-3
                                                             Another Challenging Year for Asian Travel
•   Another Challenging Year for Asian Travel
                                                             But recovery is foreseen towards the end of 2009
•   Demand for Luxury Travel to Continue
•   Travelers’ Leisure Plans Unaffected by Economy          2009 is shaping up to be another challenging year
•   One-Third of Travelers’ Budget for Accommodation        for the Asian travel industry based on the prelimi-
                                                            nary findings of the ITB World Travel Trends Re-
Aviation Bulletin ———————————-                       4-5
• SAS’ New Non-Stop Narita-Tromsø Service                   In 2008, oil price hikes and rising fuel surcharges con-
• Finnair Defers Mumbai-Helsinki Summer Flights             tributed largely to the weak travel performance of some
• Singapore Signs OSAs with Czech Republic, Oman            of the leading outbound source markets from Asia. And,
Travel Technology ——————————-                        5-6    according to Rolf Freitage, president and CEO of IPK
                                                            International, founder of the World Travel Monitor, the
• Australians: Regional Leaders in Online Travel
                                                            trend is likely to continue in 2009 as Asian economies
• Increased Internet Activity among Japanese Seniors
• China’s Growing Online Population
Country Highlights
Australia ——————————————————                         6-7
• Australians Took to Cruising in 2008
• Rail Europe to Tap New Markets
• Business Travel Down
China ————————————————————                           7-8
•   Strong Yuan Boosts Outbound Travel
•   Corporate Travel Practices of China up Close
•   Greece Eases Travel for Chinese
•   Little Mermaid Travels to China in 2010
India ————————————————————                            9
• Rising Dollar to Affect Outbound Travel
• Joint Visa Application Center in Mumbai
Japan ————————————————————                           9-11   Recovery Foreseen Before Year’s End
•   Cruise Travel Remains Afloat                            However, recovery is foreseen towards the end of 2009
•   European Promotions Start in March                      as initial findings in the report also point to the modest
•   Number of New Passport Holders Slowing Down             overall growth in outbound travel demand from leading
•   Poor Demand for Graduation Tours                        Asian markets, as revealed by Dr. Martin Buck, director
Korea ————————————————————                           11     of the Competence Center Travel & Logistics at Messe
• Korean Overseas Study and Travel Spending Down
• Airlines Cut Fuel Surcharges in March, April              But long haul destinations stand to lose out to short
                                                            haul travel and a rise in low-cost flights within the re-
Quick Figures —————————————                          12
                                                            gion is expected if oil prices remain low, added Buck.
Asian Nights in the Nordic Region

• 2007 and 2008 Nights
• 2008 and 2009 January-February Nights
                                            APAC News
                                                                                                                    Q1 2009
China to Remain a Key Source Market
The slowdown of Asian economies has a serious impact on the rest of the world especially for countries eager to tap
the region’s lucrative outbound market. So far, Japan has been the only Asian country to rank among the top ten
source markets for travel and tourism in the world. But in 2008, the country’s sluggish economy slowed down the
Japanese outbound market as estimated figures dropped by 1.5 million from 2007 to 16.5 million.
In contrast, China’s official outbound travel count was higher at about 40 million in spite of the country’s slowing
economic growth. And even though almost 70% of these trips were to Hong Kong and Macau, the remaining per-
centage still amounted to between 13 to 14 million, which is an increase by
14% compared to 2007. Hence, China is likely to remain a much sought-after
source market owing to the residual travel demand in the country.
Asia’s Young Consumers on the Rise
Young consumers throughout the region are also proving to be an increas-
ingly powerful market for the travel industry, as many of them consider trav-
eling to be a fundamental activity in their lifestyles.
As explained by the Economic Advisor for Asia/Pacific MasterCard Worldwide,
Dr. Yuwa Hedrick-Wong, personal travel ranks among the top discretionary
spend priorities of Asia’s youth and is something many would not want to put       The changing lifestyle of Asia’s youth has
off.                                                                               made the segment an increasingly pow-
                                                                                   erful market the travel industry cannot
Source:, March 2009                                                 afford to overlook.

 Demand for Luxury Travel to Continue
                                                                                   On its third year,
A strong turnout is expected at this year’s Asia Luxury Travel Market (ALTM),      the Asia Luxury
which is to be held at the Shanghai Exhibition Center from June 15 to 18,          Travel Market
                                                                                   expects a strong
2009 owing to the continued demand for luxury travel.                              turnout of partici-
On its third year, the event brings together the most important travel buyers      pants eager to
                                                                                   capture a share
from the region to meet with providers of ultra luxurious accommodation,           of the Asian lux-
elite transportation, and unique travel experiences to the most desired global     ury market.
The show has gained greater significance with exhibitors as it presents luxury
lifestyle brands with relevant networking opportunities in the region. At the
same time, it offers high visibility among Asian markets who have proven to
be more resilient to the economic crisis.
As per PATA’s Travel Monitor, Asia accounts for half of the USD 80 billion lux-
ury travel industry. It is also home to more than 2.3 million individuals with a
net worth of over USD 1 million.
According to MasterCard Insights for Asia Pacific, a large percentage of con-
sumer spending between 2006 and 2016 will be from the demand for luxury
travel and leisure that is second to the clothing and personal accessories
                                                                                   Asia is home to over 2.3 million individu-
                                                                                   als with a net worth of more than USD 1
Source: Travel Daily News, February 2009

                                          APAC News
                                                                                                                        Q1 2009

                                      Travelers’ Leisure Plans Unaffected by Economy
                                     36% of travelers from across Asia Pacific do not expect to change their
                                     leisure plans in view of the global economic situation, according to the
                                     latest survey commissioned by Visa and the Pacific Asia Travel Associa-
                                     tion (PATA) entitled ‘Determining Travel Preferences in 2009 and Be-

                                     As explained by Visa Country Manager for Singapore and Brunei, and PATA
                                     Board Director, Meranda Chan, the survey results reveal travelers will continue
                                     to travel but they are also expected to be more creative in their choice of desti-
                                     nations. For this reason, PATA President and CEO, Greg Duffell added the travel
Travelers across Asia remain unaf-   industry must create packages that meet the desire of travelers for new and
fected by the economic crisis.       reasonably-priced travel options.

Highlights from the Report:                                       • Domestic travelers from Japan, India, Chinese Taipei,
                                                                    and China to prefer to go on local holidays. Women
• Australians, Indians, and Singaporeans are the least
                                                                    were more likely than men to select the domestic op-
  likely to stop traveling or change their travel plans due
                                                                    tion; infrequent travelers were also more likely to take
  to economic fears.
                                                                    the domestic travel route.
• Travelers aged 45 and above intend to keep to their
                                                                  • Chinese, Taiwanese, Koreans, Indians, Australians,
  travel plans unlike their younger counterparts.
                                                                    and Hong Kongers. Men were more inclined to put off
• Travel plans of frequent travelers and high spend trav-           travel plans on account of the economic downturn.
  elers are unaffected.
                                                                  The online survey was conducted by Synovate last Au-
• Of the 64% of respondents who revealed that their               gust 2008. A total of 5,554 respondents from 11 key
  travel plans would be affected by the economic down-            Asia Pacific travel source markets participated in the sur-
  turn;                                                           vey that inquired about their past and future travel
        • 57% said they would still travel but look for           plans. The participants from each market were internet
          cheaper alternatives,                                   users, 18 years of age and above, and had traveled in
        • 38% plan to travel within their own country,            the past three years, or intended to do so in the next
        • 36% intend to postpone their travel plans.              two years.
• A change in destination or itinerary was a popular op-          Source:, February 2009
  tion for Singaporeans, Hong Kongers, Japanese, Tai-
  wanese, and Chinese.

 One-Third of Travelers’ Budget for Accommodation
The latest survey from Visa and the Pacific Asia Travel Association
(PATA), “Determining Travel Preferences in 2009 and Beyond”, re-
vealed that travelers spend close to a third of their budget on accom-

As revealed in the report, accommodation comprises 30% of the average
holiday budget, which excluded airfare. Food and beverages account for
22%, followed by airport duty free stores (10%), clothing and accessories
(9%), and ATM withdrawals (8%) of the traveler’s budget.

Japanese spend the most on accommodation and allot 36% of their travel
budget for it. Chinese and Indians spend the least with only 21% and 23% of
their respective budgets allocated for their travel lodgings.                          Spending on accommodation accounts
                                                                                       for one-third of Asian traveler’s budget.
Additional findings from the survey shows that the average respondent spent
USD 2,302 excluding the price of airline tickets on his/her last holiday

                                             APAC News
                                                                                                               Q1 2009
abroad. Australians spend nearly twice the average amount at USD 4,390, making them the biggest spenders among
the travelers surveyed. Indians were the second highest spenders shelling out USD 3,071 while on holiday followed
by the Chinese who spent USD 2,659.
Source: 4Hoteliers, March 2009

 Aviation Bulletin
 SAS’ New Non-Stop Narita-Tromsø Service
Beginning March 28 Scandinavian Airlines will launch a non-stop service to Tromsø,
Norway from Narita Airport. The Narita-Tromsø route offers a flying time of 10 hours.

The route was jointly planned by the Scandinavian Tourist Board (STB) and the travel agency
Club Tourism. With the flight, Club Tourism aims to commercialize the northern Norwegian city
of Tromsø and make it possible for Japanese customers to observe the northern lights up until
late March, when the climate is fairly mild in the Arctic Circle.
Source: Travel Journal International Online, February 2009

                     Finnair Defers Mumbai-Helsinki Summer Flights
                    Due to unfavorable economic conditions, Finnair has announced the temporary suspen-
                    sion of the carrier’s flights to Mumbai from May until the middle of October.

                    According to Petteri Kostermaa, vice president for Route Strategy and Traffic Planning for Finnair,
                    overcapacity has driven airfare prices down but costs have remained the same. Finnair originally
                    intended to add two more flights from Mumbai to Finland for its summer schedule. The carrier
                    presently flies four times a week on the Mumbai-Helsinki route.

In the meantime, flights to and from New Delhi will continue as scheduled for the summer period. Like other carriers,
Finnair’s profitability has weakened in the midst of the financial crisis as passenger numbers have declined together
with ticket prices. As such, Finnair has also begun to cut costs, jobs, in addition to suspending routes.

KLM (Amsterdam-Hyderabad), Austrian Airlines (Wien-Mumbai), SAS (Copenhagen-Delhi), British Airways (London-
Kolkata), and Virgin Atlantic (London Heathrow-Mumbai) are the other international carriers that have also sus-
pended flights to different Indian cities in light of the decline in passenger demand from the country.
Source: Travel Biz Monitor, March 2009

 Singapore Signs OSAs with Czech Republic, Oman
Singapore has signed individual Open Skies Agreements (OSA) with the Czech Republic and Oman that
would provide full flexibility on air services operated by carriers of each respective country.

Under the provisions of the OSA, Singapore carriers may operate any number of flights from the country to points in
partner countries, and beyond to any other city in the world. Likewise, carriers of the partner country may operate
any number of flights to and beyond Singapore. The OSAs with the Czech Republic and the Sultanate of Oman were
signed in January and February this year, respectively.

To date, Singapore has concluded OSAs with the five countries of the Gulf Cooperation Council (GCC) that includes
Bahrain, Kuwait, Qatar, the United Arab Emirates, and the latest, Oman.

According to Lim Kim Choon, director-general and chief executive officer of the Civil Aviation Authority of Singapore,
air services between the Middle East and Singapore continued to increase amidst the economic downturn as proven
by the 15% growth of passenger traffic in 2008.

In the case of the Czech Republic, the OSA is a reflection of the warm bilateral ties between the two countries. At the

                                             APAC News
                                                                                                                          Q1 2009
same time, it establishes a fully liberal air services framework that would enable carriers to react quickly to the mar-
ket demands once opportunities arise, added Lim. At present, there are no direct flights between Singapore and the
Czech Republic.
Source: Asia Travel Tips, February 2009; Asia Travel Tips, January 2009

 Travel Technology
 Australians: Regional Leaders in Online Travel
The latest quarterly study released by Forrester Research of the Asia Pacific Technographics Survey
showed that Australians are the most ardent internet users in the region when it came to making travel
arrangements online.

The study revealed that half of online Australians search for airline ticket information online and that one-quarter of
those bought tickets online. As suggested by the results of the study, about 61% of Australians booked some form of
travel online in the last year.
Source:, March 2009

 Increased Internet Activity among Japanese Seniors
The latest study by comScore Japan shows a 22% increase in the number of visitors to email sites in the
past year as more seniors in the country have adopted the technology.

As explained by comScore Japan Managing Director,
Maru Sato, the development is an indication of the ma-                                                Increased internet activity
turity of the internet as a communication vehicle. With                                               in Japan attributed to grow-
                                                                                                      ing number of seniors that
the continued expansion of the demographic composition                                                have adopted the technol-
of Japanese online users, marketers will be able to reach                                             ogy.
and influence new audiences online. Previously they
were only accessed by offline media promotions such as
direct mail, added Sato.

In the past few years, classes and workshops have been
held for Japanese seniors to instruct them on how to be
                                                                    Classes and workshops
savvy internet users, teaching them how to send emails,             are held for Japanese sen-
book travels online, and also create blogs.                         iors to instruct them on
                                                                    how to be internet savvy
Based on the study, web-based email usage among us-                 users.
ers 55 years and above grew by 88% to seven million
last November 2008. The group accounted for over 20%                This development is likely the result of the increased
of all visitors to the email site category. At the same             reliance on alternative communication channels among
time, the age group spent the most time per person at               youths that include social media and accessing email via
email sites with 121 minutes per visitor, an increase by            mobile devices. About 12.4 million people throughout
11% from the previous year. The 45-54 age group con-                the country belong to social networks, which represents
tributed to the significant growth in email usage as well,          12.2% of the population.
with 5.5 million visitors in the same month. The time
spent per visitor increased to 108 minutes.                         According to Nielsen Online, the number of active home
                                                                    internet users as of November 2008 was at 49,198,183,
In contrast, email usage among groups below 35 years                down by 0.98% from October. Japan presently has one
of age witnessed only a slight increase in visits to email          of the highest rates of broad band usage in the world
sites. The 15-24 age group showed the most significant              with an estimated 30.4 million households, a penetration
decline in the email category with 7% fewer visitors and            rate of 67%.
a decrease of 34% in minutes per visitor.
                                                                    Source: Travel Journal International Online, March 2009

                                           APAC News
                                                                                                                     Q1 2009

 China’s Growing Online Population
According to the China Internet Network Information Center (CNNIC), the
country’s online population has expanded to 298 million marking an in-
crease of 41.9% from the previous year’s tally.

The numbers are expected to continue growing in 2009. Based on the study, the
number of internet users in the countryside grew by 60.8% to 84.6 million, year-on
-year. In contrast, growth in the urban areas was lower at 35.6%.
Source: TechCrunch, January 2009                                                            China’s growing online population
                                                                                            to get even bigger.

 Country Highlights
                                    Australians Took to Cruising in 2008
                                   The latest statistics from the International Cruise Council Australasia
                                   (ICCA) showed an increase of 26% in the number of Australians who took a
                                   cruise holiday in 2008.

                                   The 330,949 Australian cruisers are the proof that the cruise sector is well placed to
                                   counter the economic downturn according to ICCA Chairman, Karen Christensen.

                                   As explained by Christensen, cruise holidays have greater appeal during these tough
                                   times as they offer transport, accommodation, meals, and entertainment in one

                                   Additional figures from ICCA also show an increase in popularity of river cruising
                                   among Australians. In 2008, a record 27,645 cruisers from Australia enjoyed a
Cruising continues to gain popu-   European river cruise, twice as many as in 2007.
larity among Australians as pas-
senger statistics grew by 26%.     Source: Travel Weekly, Australia, March 2009

 Rail Europe to Tap New Markets
For 2009, Rail Europe intends to weather the economic storm by tapping into new markets such as the
youth segment as well as those who previously traveled by coach or rental car.

Based on a market research produced for Rail Europe by Match, travelers
between 18 and 39 years of age remain positive about their situations
even as the economy slows down.

Rail Europe Sales Director for Australia and New Zealand, Florence Pas-
quier, is also convinced they could persuade travelers who are traditionally
inclined to take a coach or self-drive to travel by rail.

According to Pasquier the company hopes to breakeven with last year’s
figures. 2008 was a record year for Rail Europe in Australia as revenues
reached a little over EUR 25 million and placed the Australasia region at
the top of the list of best performing regions.

Other initiatives planned by Rail Europe for the Australian market include
working with GSAs, offering incentives for travel agents, and creating in-        Rail Europe offers Rail Passes to four coun-
                                                                                  tries in Northern Europe: Denmark, Finland,
                                                                                  Norway, and Sweden.

                                            APAC News
                                                                                                                     Q1 2009
novative packages. Pasquier also revealed the likely team up of Rail Europe with strategic airline partners but did not
mention any specific carrier yet.
Source: e-Travel Blackboard Australia, February 2009

 Business Travel Down
Australia’s outbound business travel market fell by              Asia Pacific, and Australia, Libby Roy, business travel
24.3% in January 2009 compared to a year ago based               from regions around the world have experienced a simi-
on the latest figures from the Australian Bureau of Sta-         lar slump in the last three months. And though a num-
tistics (ABS), as companies have slashed travel budgets          ber of businesses have reassessed their travel policies
as a result of the global financial crisis.                      and have even cut down on traveling, many are still
                                                                 aware of the importance of traveling to meet with clients
Though a number of companies have stopped traveling
                                                                 for the benefit of their business.
altogether, the airline industry revealed that those still
traveling have traded down to premium economy on in-             The hardest hit sector for Australia’s overseas business
ternational flights. As per IATA figures, global business        travel was the conventions and meetings segment that
and first-class travel from Australia fell by 13.3% last         suffered a 38% decline from last year.
December. According to American Express Business
                                                                 Source: The Australian, March 2009
Travel’s General Manager and Vice-President for Japan,

 Strong Yuan Boosts Outbound Travel
The appreciation of the Chinese Yuan boosted outbound travel from
the Mainland during the 2009 Lunar New Year festival period.

The strong value of the Yuan resulted in lower prices of hotels and flights,
tour packages, as well as luxury shopping deals in the United States, Europe,
Australia, and Japan.

Despite the current downturn, the China National Tourism Administration               Chinese travelers to Europe spend an
(CNTA) forecasts outbound travel in 2009 would rise by 9% to 50 million with          average of USD 1,359 per person per
consumers seeking out more cost-effective travel packages and family tours.           luxury good.

A total of 46 million Chinese tourists traveled overseas in 2008, an increase of 12% over the previous year according
to statistics from the CNTA. A survey carried out by Nielsen Company and Pacific Asia Travel Association (PATA) re-
vealed Mainland Chinese travelers spend an average of USD 1,359 per luxury good in Europe, the highest amount
across all destinations.
Source: 4Hoteliers, February 2009

 Corporate Travel Practices of China up Close
The latest report from Amadeus and PhoCusWright enti-            As explained by David Brett, president of Amadeus Asia
tled “Corporate Travel Management and Practices in               Pacific, very little is still known about travel manage-
China” sheds more light on the corporate travel practices        ment in China. Hence, the report aims to promote a bet-
of China.                                                        ter understanding of the industry that is widely recog-
                                                                 nized as a potentially important economic driver in the
Based on report findings, huge opportunities abound in
the market for the travel and tourism industry. However,
companies operating in the country including multina-            Key findings from the report reveal three major
tionals, private, and even state-owned enterprises also          issues in China’s corporate travel industry:
face significant challenges.

                                            APAC News
                                                                                                                    Q1 2009
1. IT penetration remains limited with more than 80% of the companies interviewed still using paper forms in their
travel management processes. Moreover, cash remains the predominant form of payment as 90% of companies re-
vealed they continue to give their employees cash advances to cover travel expenses.

2. Corporations need to have a detailed understanding of the domestic regulatory environment as the government
continues to play a major role in travel management. At the same time, travel management companies (TMCs) in
the country are required to have a strong working relationship with Travelsky, the only government approved com-
puter reservation system (CSR).

3. TMCs also need to adapt their systems with domestic technology as localized processes, operations, and techno-
logical capabilities remain indispensable.

But the report also suggests that change is forthcoming as exemplified by the significant expansion of the domestic
corporate travel market. In addition, increased IT penetration in the country driven by the growth of credit card
adoption and the spread of broadband infrastructure in the regions is likely to rise given the technological savviness
of the under-35 generation.

As explained by PhoCusWright Asia Pacific General Manager, Ram Badrinathan, the report reaffirms the need for
companies to fully understand the unique practices of China’s corporate travel market if they are to successfully op-
erate in the country. Furthermore, it stresses the significance of crafting policies and tailor-made programs for the
local environment, added Badrinathan.
Source: 4Hoteliers, February 2009

 Greece Eases Travel for Chinese
In a bid to boost its tourism industry, the Greek government announced that
Chinese travelers can now apply directly for a tourist visa in order to travel to
Greece by themselves without having to join a tour group.

The Greek government is targeting newly married couples from China, entic-
ing them to come explore Greece on their own.

The new policy is part of the government’s economic stimulus plan to stave off
the economic downturn.
Source: Travel Daily News, January 2009
                                                                                     The Greek government eases travel
                                                                                     regulations for Chinese travelers in a
                                                                                     bid to boost its tourism industry.

 Little Mermaid Travels to China in 2010
                                                The Little Mermaid will travel to China to participate in the World Expo
                                                2010 in Shanghai. From May to October, the Copenhagen landmark
                                                and one of Denmark’s top tourist attractions will be the focal point of
                                                the Danish Expo Pavilion. The Little Mermaid’s visit to China is ex-
                                                pected to promote wider cooperation between the two cultures. During
                                                its absence, Chinese artwork will be on display at the Copenhagen
                                                Harbor as well as in other places throughout the city.

                                                The decision to send the beloved statue to China has been met with
                                                much protest. However, many believe the move would help boost
                                                tourism from China throughout Denmark.
                                                Source: Embassy of Denmark, Beijing, February 2009
Chinese tourists to Denmark that spend only a
few days in the country travel mainly to the
Danish capital to see the Little Mermaid.

                                            APAC News
                                                                                                                   Q1 2009

 Rising Dollar to Affect Outbound Travel
 Europe, domestic travel expected to profit
The Indian outbound market will be affected by the depreciation of the Rupee as
the value of the US dollar strengthens. According to Dhruv Shringi, CEO and Co-
Founder of, the difference in dollar value compared to the same time
last year is about 30%. As a result, the fluctuation of the exchange rate is likely to
lead to expensive holiday products that could reduce the number of overseas trav-
elers. Hence, the already low-performing outbound market reeling from the reces-         Europe, domestic travel to profit
sion could slow down further.                                                            from rise of US dollar’s value.

However, the rise of the value of the Dollar is expected to benefit the European market as the rates of the Euro and
Pound are cut. As revealed by Veena Patil, Chairman and Managing Director, Kesari Tours Pvt. Ltd., international
travel to European and UK destinations would be cheaper than traveling to the US or South East Asia.

At the same time, the situation could lead to an increase in domestic tourism with holiday goers choosing to travel
locally than internationally. Though industry experts are optimistic the current economic downturn would not seri-
ously affect the outbound market, they do foresee a shift towards more economical, budget, and value-for-money
travel deals as holidays abroad become expensive as a result of the currency fluctuations.
Source: Travel Biz Monitor, March 2009

 Joint Visa Application Center in Mumbai
A joint visa application center was recently setup in Mumbai by VFS Global, a consular services facilitation company
in India. The center, called the “Schengen Visa Application Center” (SVAC), will service visa applications for travelers
to the following Schengen member countries: Austria, Belgium, France, Italy, the Netherlands, and Switzerland. Ac-
cording to Sanjay Bhaduri, VFS Global chief operating officer, the SVAC in Mumbai is the third center to open in the
country. A fourth SVAC is scheduled to open in New Delhi.

With the SVAC, travelers will no longer have to spend a lot of time applying for their visa as the center will facilitate
the application process for the six Schengen countries from a single location.
VFS Global has revealed its intention to add more Schengen countries to the SVAC portfolio but no specific countries
were mentioned at this time.
Source: Travel Biz Monitor, February 2009

 Cruise Travel Remains Afloat
Cruise travel appears to be faring better than expected as bookings are at
level with last year’s owing to the efficient planning strategies of travel
agencies. Bookings for several destinations are also steadily growing,
buoyed in part by the increasing strength of the Japanese Yen versus
other global currencies.

At JTB Royal Road Ginza, bookings for overseas fly-and-cruise products in fiscal         Cruise travel bookings are fairing
2008 grew by 13% from fiscal 2007. Reservations for fiscal 2009 (April-December)         better than expected for 2009 as
                                                                                         the increasing value of Japanese
have increased by 77% from the previous fiscal period. The agency remarked that          Yen boosts interests for cruising
many consumers who postponed their travel plans last autumn because of the eco-          destinations.
nomic slowdown are now rebooking for tours scheduled to depart in April 2009 and
after. At the same time, current tour prices are lower than last year’s levels.

                                             APAC News
                                                                                                                          Q1 2009
Hankyu Express International (HEI) recreated its Alaska summer cruise tours for fiscal 2009 but has expanded it to
accommodate 1,400 participants. It has also extended the number of departures from four airports. To date, over
800 customers have booked for the summer Alaska tours owing to the convenient charter flights operated by Japan
Airlines and the reasonable tour prices.

HEI expects to attract 8,000 tour participants for the coming fiscal period. PTS Corp. will be marketing its PTS Pre-
mium luxury cruise products and reasonably priced PTS Value products to secure tour bookings for fiscal 2009. The
demand for tours began to pick up momentum in January owing to the reasonable pricing of Mediterranean and
European products brought about by the depreciation of the Euro.
Source: Travel Journal International Online, March 2009

 European Promotions Start in March
The Japan Association of Travel Agents’ (JATA) Visit World Campaign (VWC)
20 Million Promotion Office will start its VWC 2009 Europe Advertising Cam-
paign by the middle of March. The campaign includes a series of advertise-
ments in the Asahi Shimbun, one of the largest nationally circulated news-
papers in the country.

JATA aims to jumpstart consumer demand for overseas travel with advertis-
ing inserts within and after April 2009 when fuel surcharge levels are ex-
pected to be reduced substantially. The VWC office project to develop the
European market began in November 2008.
Source: Travel Journal International Online, March 2009                                  JATA campaign aims to jumpstart de-
                                                                                         mand for overseas travel to Europe
                                                                                         among Japanese consumers.

 Number of New Passport Holders Slowing Down
The total number of Japanese passports issued in 2008               While the majority of campaign participants were resi-
was only 3,829,784 — less than the previous year’s                  dents of prefectures in and around Tokyo, residents from
count of 4,209,097 based on statistics from the Ministry            the Shizuoka and Ibaraki prefectures had the highest
of Foreign Affairs (MOFA). It was the first time since              participation rate in the campaign, an indication of the
2005 that passport numbers did not reach the four mil-              high expectation of regional residents prior to the open-
lion mark.                                                          ing of the Mt. Fuji Shizouka and Ibaraki airports. A num-
                                                                    ber of participants also hailed from prefectures located
Regardless, the passport campaign initiated by the Visit
                                                                    far from Tokyo such as Aomori, Kagoshima, Shimane,
World Campaign (VWC) 20 Million Promotion Office of
                                                                    and Kochi.
the Japan Association of Travel Agents (JATA) welcomed
an additional 27,147 new passport holders during the                The number of passport holders is a reflection of the
last quarter of 2008. The success of the campaign was               level of intent among consumers who plan to travel
attributed to the collaborative efforts of the travel indus-        overseas.
try and relevant organizations.
                                                                    Source: Travel Journal International Online, January 2009

 Poor Demand for Graduation Tours
The poor demand for graduation tours among Japanese youths has resulted in poor sales at major travel
agencies for the period of 2008-2009. Traditionally, sales tended to grow from December to March as
graduates consider this time as their last opportunity to travel before entering the workforce.

                                             APAC News
                                                                                                                   Q1 2009
Tour bookings for graduation travel are showing negative growth from last year
due to the worsening Japanese economy. The wait-and-see attitude recently
adapted by consumers hoping for tour prices to drop with the decline of fuel sur-
charges by late April has also contributed to the poor performance of graduation

At many travel agencies handling graduation tours trends indicate a preference
for short-haul destinations particularly those offering moderately-priced products
like South Korea, where prices have fallen due to the appreciation of the Japa-
nese Yen. Another destination, Guam, offers tour prices at below JPY 20,000.

In contrast, graduation tour products to Europe, which are now more reasonably
priced than before at JPY 100,000 have not sold as fast as those to short haul        Graduation tours are traditionally
destinations.                                                                         considered by Japanese youths as
                                                                                      their last opportunity to travel be-
Source: Travel Journal International Online, February 2009                            fore entering the workforce.

 Overseas Study and Travel Spending Down
Korean spending on overseas study and travel have declined significantly since last November 2008 ow-
ing to the declining value of the Korean currency and the country’s slumping economy.

According to the Bank of Korea (BOK), the expenditure on overseas study fell by 51.5% from the previous year to
USD 167.7 million, the largest year-on-year fall since January 1998.

Previously many South Koreans have spent large sums of money for their children to study overseas due to their
enthusiasm for high-quality education. But today many of the men that stay home to support their families abroad,
the so-called “goose fathers”, are suffering from the cost of overseas education due to the depreciation of the won.
In 2008, the Korean won became one of the world’s worst performing currencies as its value plunged 25.7% to the
US dollar.

Spending on overseas travel by South Koreans also dropped by 68.1% to USD 473.9 million compared to the previ-
ous year, marking the steepest decline since 1998 after the Asian Financial Crisis.

Data released by the Bank of Korea (BOK) on the country’s international balance of payments in January 2009,
showed overseas spending on travel declined by 54.7%. Spending on overseas business trips also declined in Janu-
ary by 55.7% from USD 345.3 million to USD 152.8 million. Overseas study expenditure fell by 38.1% from USD 506
million to USD 313.4 million.
Source: The Korea Times, January 2009, Digital Chosunilbo, March 2009

 Airlines Cut Fuel Surcharges in March, April
For the first time since July 2005, Korean Air and Asiana Airlines, Korea’s leading carriers, will not impose additional
fuel taxes on international flights in March and April given that the price of global oil prices has fallen.

Previously, international air travelers paid USD 41 (EUR 32) on flights to the Americas and Europe while flights to
China and Southeast Asia were charged an additional USD 18 (EUR 14).

For international routes, fuel tax rates are set bimonthly in line with the mean price from the month before.

Source: Digital Chosunilbo, February 2009

                                          APAC News
                                                                                                                               Q1 2009

Quick Figures
2007 and 2008 Nights

DENMARK                           2007 (Y1)                   2008 (Y1)                   Change in % (Y2)
             Y1                                                                                                         Y2

           320,000                                                                                                      25%
                                                       19.51%                                                 296,466

           256,000                                                                                                      20%

           192,000                                                                                                      15%

           128,000                                                                                                      10%
                                                                        5.38%                111,958

           64,000     84,925 81,307                                                                                     5%
                                      50,782 55,388
                                                      7,851   9,383
                                                                      36,468 38,430
                  0                                                                                                     0%
                        Japan           China           Korea          Australia      Other Asia           Total

           -64,000                                                                                                      -5%
                       -4.26%                                                                            -4.08%

          -128,000                                                                                                      -10%

          -192,000                                                                     -13.24%                          -15%

                                             APAC News
                                                                                                                             Q1 2009

FINLAND                                2007 (Y1)               2008 (Y1)                 Change in % (Y2)
              Y1                                                                                                     Y2
           350,000                                                                                                   17.5%

           300,000                                                                                313,628 312,470    15.0%

           250,000                                                                                                   12.5%

           200,000                                                                                                   10.0%

           150,000                                                                                                   7.5%
                           156,047 153,954

           100,000                                                                                                   5.0%
            50,000                                               1.54%                                               2.5%
                                                               22,798 23,148    41,204
                       0                                                                                             0.0%
                               Japan            China           S-Korea          Australia           TOTAL
            -50,000           -1.34%                                                                  -0.37%         -2.5%

           -100,000                                                                                                  -5.0%

           -150,000                                                                                                  -7.5%

                                      2007 (Y1)                2008 (Y1)                 Change in % (Y2)
             Y1                                                                                                       Y2

           60,000                                                                                                     30%
                                                                                   21.69%                   55,466

           40,000                                                17.15%                                               20%

           20,000                                                                                                     10%
                           21,207   20,935
                                                                       10,152            14,285
                                                      10,094   8,666            11,739
                   0                                                                                                  0%
                              Japan             China           Oceania         Other Asia             Total
           -20,000          -1.28%                                                                    -4.96%          -10%

           -40,000                                                                                                    -20%

           -60,000                                                                                                    -30%

           -80,000                                                                                                    -40%
          -100,000                                                                                                    -50%

                                       APAC News
                                                                                                                                  Q1 2009

NORWAY                          2007 (Y1)                       2008 (Y1)                      Change in % (Y2)

          500,000                                                                                                          40%

          375,000                                                                                      423,154

          250,000                                                                                                          20%

          125,000                                                                                                          10%
                                                         3.4%                              154,269
                           107,661            45,861
                                     70,694            40,609            41,620
                                                                41,980            45,119
                 0                                                                                                         0%
                        Japan          China             Korea           Australia Other Asia                 Total
         -125,000                                                                     -1.8%                                -10%
         -250,000                                                                                                          -20%

         -375,000                                                                                                          -30%

         -500,000                     -35.1%                                                                               -40%


                                2007 (Y1)                       2008 (Y1)                      Change in % (Y2)
            Y1                                                                                                             Y2
         400,000                                                                                                           40%

         300,000                                                                                                           30%

         200,000                                                                                                           20%


         100,000                  113,871                                                  118,383                         10%
                           101,882      102,037          2.92%                                               11.18%
                                                       20,004 20,588
                                                                     42,044 49,788
                 0                                                                                                         0%
                       Japan           China             Korea           Australia Other Asia                 Total
         -100,000                                                                                                          -10%
                                     -10.39 %

         -200,000                                                                                                          -20%

                                                   APAC News
                                                                                                                                              Q1 2009

2008 and 2009 January-February Nights
DENMARK                2008 January-February (Y1)                                         2009 January-February (Y1)
                 Y1                     Change in % (Y2)                                                                               Y2

               35,000                                                                                                                  35%

               30,000           27.68%                                                                                                 30%
               25,000                                                                                                                  25%

               20,000                                                                                                                  20%

               15,000                                                                                                                  15%
               10,000                                                                                     12,518                       10%
                5,000          7,045                                                                                                   5%
                                               5,000    4,844     955    346    2,892
                      0                                                                 2,343

                -5,000           Japan           China             Korea         Australia       Other Asia            Total           -5%
               -10,000                                                                                               -5.42%            -10%

               -15,000                                                           -18.98%                                               -15%

               -20,000                                                                            -29.5%                               -20%

               -25,000                                                                                                                 -25%

               -30,000                                                                                                                 -30%

               -35,000                                                                                                                 -35%

FINLAND               Y1
                                         2008 January (Y1)              2009 January (Y1)             Change in % (Y2)
*nights for
January only      20,000                                                                                                          50.0%

                  15,000                                                                                              15,745

                  10,000                                                                                                          25.0%

                   5,000                                                                                                          12.5%
                                                                                 615     2,085    1,716
                           0                                                                                                      0.0%
                                       Japan             China          S-Korea          Australia                 Total
                  -5,000               -6.5%                                                                                      -12.5%
                                                        -16.8%                                   -17.7%
                 -10,000                                                                                                          -25.0%

                 -15,000                                                                                                          -37.5%

                 -20,000                                                 -45.2%                                                   -50.0%

                                         APAC News
                                                                                                                                     Q1 2009

ICELAND*                      2008 January-February (Y1)                          2009 January-February (Y1)
             Y1                                                                                                              Y2
                              Change in % (Y2)
            6,000                                               138.3%                                                       150%

            4,000                                                                                                            100%

            2,000                                                                                                            50%

                                           310                             653     721       714
                                                       309      274
                  0                                                                                                          0%
                         Japan                 China            Oceania            Other Asia                Total
                                               -0.3%                                 -1.0%
           -2,000                                                                                                            -50%

           -4,000                                                                                                            -100%

           -6,000                                                                                                            -150%
                                                                                              *Overnight stays in hotels only

NORWAY       Y1               2008 January-February (Y1)                           2009 January-February (Y1)
                              Change in % (Y2)
           24,000                                                                                                            100%

           18,000                                                                                                            75%

           12,000                                                                                                            50%

            6,000                                                                                 7,405                      25%
                              3,885    2,387
                                                        1,608   650        2,106 1,760
                  0                                                                                                          0%
                        Japan            China               Korea     Australia Other Asia                   Total
            -6,000                     -13.70%                                                                               -25%
                      -18.99%                                                                               -25.74%
           -12,000                                                                                                           -50%

           -18,000                                                                                                           -75%

                                             APAC News
                                                                                                                                    Q1 2009

SWEDEN           Y1                2008 January-February (Y1)                      2009 January-February (Y1)                Y2
                                   Change in % (Y2)
               50,000                                                                                                        100%

               40,000                                                                                                        80%

               30,000                                                                                                        60%

               20,000                                                                                                        40%

               10,000                                                                                                        20%
                                   8,853   9,281 8,666
                                                         2,005           5,189
                      0                                                                                                      0%
                            Japan           China         Korea          Australia Other Asia                 Total
                                           -6.63 %                       -20.81%
              -10,000                                                                                                        -20%
                          -17.16%                                                                           -20.12%
              -20,000                                                                                                        -40%

     Sources: VisitDenmark, VisitFinland, Tourmis, Statistics Iceland, Statistics Norway and Statistics Sweden