Market situation: South East Asia. MySwitzerland.com/meetings Created by: Dominique Oi Created on: September 2019

Market Situation SCIB: South East Asia 2017-09-17

1. ADB: http://ADB: www.adb.org 2. AEC: http://asean.org/asean-economic-community/ 3. IMF Global Forecast: http://www.imf.org 4. IM: http://www.internationalmeetingsrevview.com

1 MARKET SITUATION AND OUTLOOK.

1.1 Economic situation

The emerging market and developing economy of Southeast Asia is expected to grow at 6.2 percent in 2019-2020. The forecast is 0.1percent point lower than in April WEO for both years, largely reflecting the impact on trade and investment. Against a difficult backdrop that included a week final demand US-China trade and technology tensions as well as prolonged uncertainly on Brexit, momentum on global activity remained soft in the first half of 2019. There were positive surprises to growth in advanced economies, but weaker-than-expected activity in emerging market and developing economies.

Source: IMF Publications WEO Issues Update According to UNWTO trends showed strong outbound travel grew above the world average at 6 percent for ASEAN. At the same time, the global economic slowdown, the uncertainty related to the Brexit, as well as geopolitical and trade tensions may prompt a “wait and see” attitude among investors and travelers.

Market Situation SCIB: South East Asia 2019 3

Overview of the World Economic Outlook Projections In % economic growth expressed in percentages,

Source: IMF Economic Outlook Update, July 2019 The South East Asian market(s) expected economic growth expressed in percentages,

Country Prognosis Expected Economic Growth 2019 to 2020

Indonesia Stable • Strong remainder growth of 5.1 in 2019. Bank of Indonesia cuts rates for second straight meeting in August to spur growth.

• The economy expanding 5.1% growth again in 2020.

Malaysia Stable • The economy growth at 4.4% for 2019. Malaysia economy is expected to soften as softer global demand for tech and heightened trade tensions weigh on the external sector. The U.S> - China trade spat and a faster than expected deceleration in China remain key downside risks. Unchanged growth to 4.4% in 2020.

Singapore Negative • Economic growth is expected to decelerate notably this year growth to 1.2% for 2019, which is down by 0.6%. Targeted 2.0% growth in 2020

4.84.9

5.25.4

5.3

2016 2017 2018 2019 2020

Year to Year

2017

2018

20192020

0.0%

2.0%

4.0%

6.0%

8.0%

Indo…

Mala…

Sing…

Thail…

Phili…

Vietn…

5.1%4.5%

2.2% 3.0%

6.8%6.5%

5.3% 5.3%

2.9%3.9%

6.7% 6.6%5.5%

5%

2.7%3.8%

6.8%6.5%

5.1%4%

2.0%3.3%

6.2% 6.5%

Expected Economic Growth in % (2017 / 2018 / 2019 / 2020)

2017 2018 2019 2020

Market Situation SCIB: South East Asia 2019 4

Thailand Stable • Economic growth is seen losing pace this year owing to significantly softer domestic demand, a more challenging external environment and a stronger currency dragging on exports and tourism.

• While higher government expenditure should cushion the slowdown somewhat, burdensome household debt clouds outlook expects 3.2% in 20149. to 4.3% in 2018 and the economy is expected to remain strong on the back of a robust tourism expected 3.8% growth in 2019.

• Targeted 3.3% in 2020

Philippines Positive • Stable at 6.0% in 2019, unchanged from last year. • Economic growth should ebb this year relative to last

year, weighed on by weaker government consumption due to the budget mishap in H1 and slower fixed investment. Nevertheless, economic activity should gain stride in H2 on the pick-up in public spending. The U.S.-China trade dispute, weak global tech demand and a regional slowdown are key risks to the outlook

• Targeted growth to 6.2% in 2019.

Vietnam Positive • The economy will be one of the region’s star performers this year, buttressed by strong tourism, exports and industrial output. However, given the economy’s open nature, growth will be hampered somewhat by weaker global momentum.

• Trade tensions are a source of uncertainty; while they will dent global economic activity, they could also divert more investment from China to Vietnam.

• Focus Economics panelists project the economy will expand 6.7% in 2019, which is unchanged.

• Targeted growth to 6.5% in 2020.

Source: Focus-economics, 2019 (http://www.focus-economics.com) Southeast Asia is stands stably one of the largest source markets for travelling abroad, with currently $50 billion spent on such trips and increasing by 7% annually. The Lufthansa joints venture with Singapore Airlines, a direct flight from Vietnam and the numerous direct flights via Germany or Austria ensure excellent accessibility. Switzerland Tourism and Switzerland Convention Incentive Bureau (SCIB) in Southeast Asia continues to establish our country as an ideal incentive destination in the market. The projected overnights directly influence by SCIB estimated by 20,000 overnights for 2019

Market Situation SCIB: South East Asia 2019 5

1.2 Situation of the Meeting Industry & Trends.

Structure of the Market

1.3 RFP situation in South East Asia

South East Asia MICE overview: The market continues to grow and an increase of 11.5% in the period from 2019 to 2022 is realistic. In the year 2022, nearly 650,000 nights will be spent by Southeast Asian guests in the Swiss hotel industry.

2 TARGETS.

2.1 Qualitative.

• The on-going key focus to establish a network with decision maker(s) among corporate clients (insurance, automotive, banking lifestyle brands) directly or through incentive agencies and ground operators.

• SCIB SEA continues to in building up this year the contacts to all player(s) within the ASEAN region.

• Focus MICE activities in (Indonesia, Singapore, Malaysia, Thailand, Philippines and Vietnam), organise different events with the well-established MICE travel agencies and

30%

30%

20%

10%

10%

SEA - Market Segmentation %

General Corporate Companies

Insurance CorporateCompanies

Banks - Bank Insurance

Pharmaceutical / Doctors

Education / Uninversity

Market Situation SCIB: South East Asia 2019 6

their corporate clients. • Evaluate this year potential corporate companies in South East Asia to have an in depth

know-how and establish the connections. • Work with partners to create unique opportunities to increase value and quality. • Continue the market research in the association field. • Create value through greater creativity and innovative marketing. • Use various platforms to actively network and put Switzerland on clients’ top mind.

2.2 Quantitative Goals

• Number of qualified contacts in the database: 2’050 • Qualified client contacts: 700 • Number of days with customers: 55 • Number of requests: 140 • Number of conferences, meetings and incentives in Switzerland:110 • Number of directly influenced overnight: 15,000 • Web visitors on meetings/incentives: 2,500

3 CURRENT DATABASE SITUATION.

Further details of past, present and future marketing activities can be found on www.stnet, which can be accessed by using your personal username and password.

4 CONTACTS.

Switzerland Convention & Incentive Bureau Dominique Oi MICE Manager Southeast Asia Phone: +65 6468 2766 (DID) / Mobile: +65 9828 6777 Email: dominique.oi@switzerland.com Website: www.mySwitzerland.com/meetings

Kind Contacts

MICE Agents 1051

Corporate Clients 225

MICE Media 6

MarketingActivities SCIB – Budget SCIB – SOUTH EAST ASIA

SOUTH EAST ASIA01/01/2020 –31/12/2020

Sales calls in all core markets: Indonesia (Jakarta,Surabaya), Thailand, Singapore, Malaysia (KualaLumpur, Penang), Philippines & Vietnam (Hanoi,HCMC)

SCIB: Sales Call0

SCIB SEA will represent onbehalf- Partners to provide lastestpromotion

Comments Cost CHF

01/01/2020 –31/12/2020

- Session for agencies offices all over South East Asia:Kuoni, G2, Panorama, MIKI.- Participants can join the live visual & audiopresentation from any locations in the Asia via internet.- Time: 10h00 Swiss time.- The sessions are being recorded and uploaded onMySwitzerland.comin order for clients to access thewebinars at any time.- Follow-up email to all registered clients is sent bySCIB and include partners’ contact details andpromotional material.- Participating partners to receive full contact details ofthe planners.

SCIB: Webinar trainig for MICE agencies, partners500

Open to Subpartner

Comments Cost CHF

01/08/2020 –31/08/2020

Study trip for best corporate clients to Switzerland.Market: Singapore, Malaysia, Thailand, Indonsia,Philippines- 12 Corporates- 02 Collaborating Agency or Hotel Chain personneltop management- 01 Media if applicable- 01 SEA SCIB

SCIB: Study Trip to Switzerland for/with corporateclients 0

Land arrangements to behosted by partnersFlights & Swiss Travel Pass tobe hosted by SCIB

Comments Cost CHF

01/09/2020 –30/11/2020

- Combination of purely Meetings events in themarkets with corporate, agencies and associations:SCIB will plan a roadshow in all main SEA countries topresent Switzerland as a MICE destination.(Bangkok, Indonesia, Singapore, Malaysia, Philippines,Vietnam)* A rotation of 3 countries will be selected and finalizeat later stage based on economy situtation

SCIB: Roadshow and Sales Calls in South EastAsia 5'000

Price exclude all flight costand hotel accommodation inall main cities.Price include all events andtransporation to the eventvenue/sales calls.Supplememt fee of CHF 500for shared table if partnerbring another partner supplierfrom the same region

Comments Cost CHF

01/01/2020 –31/12/2020

Advertorial for MICE in Switzerland on- News Papers- MICE Related magazinesIntergrate with partners in the content and providingadvertisement space in the supplement for eachparticipating partners* Based on interest and budget of the partners., SCIBwill create a package for a media presence in themarket of interest.

SCIB: Advertorial for MICE in Switzerland0

Providing of raw material andprove reading.

Comments Cost CHF

Printed: 18/09/2019 - Page 29