ASEAN Hip-Hop scheme seeks to spur intra-regional travel

ASEAN Hip-Hop scheme seeks to spur intra-regional travel

Agence France-Presse, Kuala Lumpur

Southeast Asia's revitalized travel industry has launched a new program offering airfare, hotel and tour discounts to spur travel within the region amid growing restrictions on entry into the United States and the mounting costs of traveling to Europe.

Tourism in the region was hit hard early last year by the Severe Acute Respiratory Syndrome (SARS) epidemic but the numbers are up again and the industry hopes the ASEAN Hip-Hop Pass will give intra-regional tourism an added boost.

Last year, tourist arrivals to the 10 countries of the Association of Southeast Asian Nations (ASEAN) fell by nearly 15 percent to 37.49 million people, from nearly 44 million in 2002, according to the ASEAN secretariat.

The sector is a major revenue-earner for ASEAN countries, generating US$27.7 billion in tourism receipts in 2002, excluding Brunei, or 4.8 percent of ASEAN's gross domestic product.

Sebastian Lo, executive director of the Kuala Lumpur-based ASEAN Tourism Association which launched the Hip-Hop scheme last month, said it would run until March 25 next year to promote ASEAN as a single destination.

More ASEAN residents are turning to the region for their holidays following stringent security checks at airports in the United States due to terrorism fears, and the strong European currency, he said.

"ASEAN is not like Europe. We are not as connected because we don't have the land advantage and there's no single air pass that's encouraging people to visit more than one country," Lo told AFP in an interview.

"We must not neglect ASEAN. There's 550 million people in this region and we think there's a huge market potential for such a product."

For $399, the Hip-Hop pass offers travellers three flight coupons to two destinations, with travel to begin and end in the country of origin -- such as Singapore-Bangkok-Manila-Singapore.

Each additional flight coupon costs $150, with a maximum purchase of six, for economy class travel on nine participating airlines, mainly national carriers. There must be a minimum stay of five days and a maximum of a month for the total journey.

Pass holders get discounted rates of $35, $50 and $70 for a night's stay in participating three-star,four-star and five-star ASEAN hotels respectively. They can opt for a $30 tour pass which provides airport transfer and a half-day city tour.

Lo said the Hip-Hop pass, sold by airlines and travel agents in all ASEAN countries, allowed tour companies to formulate new travel packages as it widened their network of destinations, especially to Indochina which was previously not that accessible.

He said the association was in talks with governments in Cambodia, Laos, Myanmar and Vietnam to open up domestic travel. Pass holders can now only fly to just one destination in those countries.

Plans are in the pipeline to recruit smaller carriers to develop a more competitive airpass, as well as international carriers flying regional routes such as Emirates and Gulf Air to expand the scheme, he said.

"We are talking to smaller players like Bangkok Airways, Indonesia's Merpati and Malaysia's no-frills AirAsia to develop a second airpass which will allow more flexibility in pricing in the next six months," he said.

Lo said travel confidence in the region had rebounded after last year's sharp slump, reflecting a strengthening of regional economies and pent-up demand for travel.

"2003 was a loss year but this year, I think the confidence has come back. People may avoid certain cities that are seen as high risk for terrorism for instance but that's not stopping them from traveling anymore," he said.

Economists said the Hip-Hop scheme appeared promising but more efforts must be made to woo foreign travellers because the majority of ASEAN's residents would not be able to afford it.

"ASEAN's per capita income is very low, ranging from around $100 for Myanmar to between $300 and $500 for Cambodia, Laos and Vietnam. It's only $800 in Indonesia and below 1,000 in the Philippines," said Nizam Idris, an economist with Singapore-based IDEAglobal.

"The scheme has potential if it is expanded for more non-ASEAN travellers."