Significant challenge

For the purpose of our Annual Industry Survey, we defined the emerging destinations in Asia Pacific as being Cambodia, Laos, Nepal, the Pacific Islands, Sri Lanka and Vietnam. Out of the 434 respondents, Vietnam received 25.12 per cent of the vote, Cambodia 8.06 per cent, Pacific Islands 7.14 per cent, Sri Lanka 6.22 per cent, Laos 3 per cent, Myanmar 2.76 per cent and Nepal 2.07 per cent. China (p38) and India (p52), although still developing themselves, performed significantly well enough across all categories to earn their own write-ups. Vietnam ability Vietnam is still the giant of the emerging destinations in Asia Pacific. Its 25.12 per cent share of the vote is a one per cent reduction on 2005, but it is still a long way ahead of Cambodia, its nearest rival. Things appear to be going well for Viet-nam's tourism industry with foreign arrivals in the first 11 months of 2005 rising 18.8 per cent to 3.2 million people, according to the Vietnam National Administration of Tourism. Increasing pressure Emerging destinations across Asia Pacific have faced several significant challenges over the past 12 months. Myanmar is under ever increasing pressure to enter into the democratic process, Indonesia has taken a battering in the Australian media over recent cases involving young Australians in jails there and Bali was struck by another terrorist attack in October, just as it seemed to be regaining its feet after the 2002 bombings. Overshadowing these is the ongoing possibility of a regional outbreak of bird flu, which is an issue affecting all of the countries covered by our survey, regardless of destination status. "Vietnam is proving to be an attractive CEI destination at present," says Debbie Chee, director of sales and marketing at the Duxton Hotel, Saigon. "CEI business among hotels has grown 20 per cent on last year. Vietnam was the venue for the 2003 Southeast Asian Games and the venue for the 2004 5th Asia-Europe Meeting of 29 world leaders and their high-level delegations. "This year it will host the 14th APEC Summit. Apart from these mega events, there are other various-sized CEI events being held for foreign visitors to Vietnam." Fredrick Arul, general manager of Melia Hotel, Hanoi, also sees a bright future for Vietnam. "Although Vietnam is seen as a novel destination by CEI organisers, the country has not yet woken up to its potential," he says. "In an attempt to penetrate the market and introduce Vietnam at international tourism fairs abroad, the Vietnam Meeting and Incentive Club was established two years ago by Vietnam Airlines, the national air carrier. Most of the nation's big hotels and resorts are members, including Melia Hanoi." Key concern Analysing the performance of emerging destinations can be a risky affair. While the majority of destinations on our list are approaching something leaning towards political stability, there are many external factors — natural and manmade — that can have a big effect on all countries across Asia Pacific. This concern is borne out in our survey responses. According to our readers, the most important factors involved in selecting an incentive destination are security (41 per cent), pricing (15 per cent) and accessibility (11 per cent). Destination familiarity (4 per cent) and language barriers (4per cent) are the least of our respondents' worries. Across the region, the top threats our respondents believe will influence business are security (49 per cent), political instability (18 per cent) and regional conflicts (7 per cent). However, where the emerging destinations can compete well is in the area of pricing, which our 434 respondents listed as being the most important influence on the CEI industry across Asia Pacific in the coming 12 months. Some 33 per cent selected this option, with economic growth (32 per cent) and infrastructure (12 per cent) taking the next two places.