November 2024
TICA
mice
UPDATE
Chiang Mai's Business Events Revival
Rajat Chatterjee,
General Manager of Chiang Mai Marriott Hotel
- What specific challenges did the flooding pose to hosting MICE events during and after the disaster?
Answer: The flooding on October 4th and 5th presented significant challenges, particularly for movement of guests in and around the city. Earlier in late September, we experienced minor flooding, similar to what happened in 2022, which didn't disrupt operations. However, the October floods were far more severe. By the evening of the 4th, water levels had risen significantly high that even six-wheeler trucks couldn't navigate the streets. Fortunately, our hotel wasn't impacted since all facilities in the hotel were operational, however, despite our advance preparations, including renting large vehicles, guest movement became impossible by late night.
On the morning of the 5th, we had many guests needing to leave the hotel. With no transportation available, we coordinated with local government agencies to secure transportation for guests to depart the hotel.
We had incoming groups in the next few days of the flooding, including a large one from Hong Kong 10 days later. They were understandably concerned, so we immediately reassured them with regular updates, photos, and calls. By showcasing the hotel's readiness and the city's rapid recovery, we built their confidence, and the event went on successfully.
Within days, the city returned to normal. Thanks to coordinated efforts from the government, local businesses, and the community, the clean-up was swift. As a hotel, we also supported nearby properties by accommodating their guests when they couldn't access their respective hotels. We also supported the government agencies in cleaning the neighbourhood.
The flooding tested our preparedness, but early warnings and strong collaboration made all the difference. While the days during the flood were tough, the collective response was inspiring, and business operations resumed quickly. This spirit of cooperation, coupled with transparent communication, ensured that our guests and clients felt supported throughout.
- What lessons have you learned from this event, and what measures are you planning to implement to ensure better disaster preparedness in the future?
Answer: I believe our disaster preparedness was strong, but every situation teaches you something new. One key lesson was the importance of refining our action plans and improving coordination with external local and government agencies. After the flood, we conducted a thorough review with our team to analyze our response and identify areas for improvement.
Now, we have a phased action plan based on water levels at key monitoring points. For instance, when water levels upstream reach 3.5 meters, we initiate phase one - securing additional food supplies, preparing sandbags, and moving essential staff in-house. If levels reach 4.5 meters, we escalate our actions, ensuring transport solutions like SUVs and higher trucks are ready.
Communication with guests is equally critical. We inform them about potential issues in advance, allowing them to adjust plans while ensuring the property remains fully operational. During the last flood, even at 5.4 meters, all F&B outlets and services were running smoothly.
Our contingency plans, backed by Marriott's global expertise, are now more robust. And yes, we're also hoping for kinder weather in the future! - Are you offering any special incentives or packages to encourage MICE planners to return to Chiang Mai and Chiang Rai?
Answer: Absolutely. We're seeing strong interest in MICE events, and we've crafted special packages tailored to the size and timing of events. November was an exceptional month for Chiang Mai - better than even pre-COVID years - with robust MICE activity across the city, including our property.
We're also expanding our offerings. By the end of this month, we'll have nearly 3,000 square meters of state-of-the-art MICE space, including a new 400-square-meter ballroom with cutting-edge LED screens on all four walls. These screens allow us to create immersive experiences - anything from a beach in Phuket to a jungle setting with elephants - all within the meeting room.
With increasing flights from Korea, the Middle East, and soon India, we're very optimistic. Flooding hasn't impacted demand. Chiang Mai remains a vibrant, resilient MICE destination, and we're confident the city is moving forward.
Impact on Business Operations
Precautionary Measures
Restoring Confidence
Warunee Khammeru,
General Manager of Duangtawan Hotel Chiang Mai
- How has the recent severe flooding affected your MICE operations, including bookings, cancellations, and revenue?
Answer: At Duangtawan, we experienced flooding twice. During the first round, the area around our hotel wasn't affected, which gave us the confidence to reassure MICE groups that flooding wouldn't impact our property. However, after the second round of flooding, we had to relocate five MICE groups to 4-star hotels in the Nimman and Huay Kaew areas, resulting in revenue of 8.5 million THB.
The relationships between hoteliers proved vital during this time, as we urgently needed to move guests and MICE groups while maintaining the same rates and conditions.
Unfortunately, we had to close the hotel for the entire month of October, resulting in a revenue loss of 18 million THB. During this period, we also had to repair critical equipment, including 2 chillers, 2 boilers, 2 main distribution boards (MDBs), 3 water pumps, and 18 laundry machines. All repairs were completed in time for the hotel's reopening in November.
Reopening by November 1st was crucial because we had significant events lined up, such as Loy Krathong, which had been fully booked two months in advance, and 17 MICE groups-5 international and 12 domestic. The total cost of recovery, including repairs to machinery, furniture, operational equipment, and office spaces, was approximately 50 million THB.
One of the biggest challenges during and after the disaster was restoring customer confidence. Many clients had seen the flooding on social media or experienced it firsthand, which made them hesitant to host MICE events. As Chiang Mai suppliers, we had to work extensively with media channels to provide accurate information and emphasize that the flooding receded quickly, with the impact limited to the Night Market and Chang Klan areas. MICE events could still be held in unaffected areas such as the Old City, Huay Kaew, or Nimman.
By November 1st, Chiang Mai City officially announced that it was back to normal operations.
- What lessons have you learned from this event, and what measures are you planning to implement to ensure better disaster preparedness in the future?
Answer:- We need to establish a comprehensive flooding crisis management plan and conduct regular training, similar to our fire safety training with hotel staff and government agencies.
- We will create a list of hotel partners, including agreed-upon rates and signed contracts.
- We will strengthen our supplier chain management.
- We will enhance collaboration with the government, particularly with sectors that support hotels and ensure the safety of tourists, in order to protect the image of Chiang Mai and Thailand.
- Are you offering any special incentives or packages to encourage MICE planners to return to Chiang Mai and Chiang Rai?
Answer: During this high season, Chiang Mai is hosting many special events organised by TAT and the local government to help the city make a strong comeback. These events attract FIT guests, and we hope MICE groups will also take advantage of these benefits. At Duangtawan, we are promoting our MICE packages on our website, www.duangtawanhotelchiangmai.com, as well as on the TCEB app.
- What are the USPs of Northern Thailand and specifically your property, especially when it comes to hosting business events?
Answer:- A variety of direct flights from short-haul markets such as Korea, Singapore, Hong Kong, Japan, China, Taiwan, and Malaysia.
- Domestic flights from Bangkok to Chiang Mai every 40 minutes.
- A mix of 3-5 star hotels, sufficient to accommodate large MICE groups at reasonable prices.
- A night market area within walking distance that can host MICE events for up to 2,500 people, and the Nimmanhaemin area, also within walking distance, can host up to 1,000 people with a convention space.
- Chiang Mai is now being promoted as a Green MICE and low-carbon destination for FIT.
- Numerous CSR areas and programs to offer alongside MICE activities.
- A variety of special venues suitable for gala or awards dinners.
- A wide selection of local street food and international cuisine to cater to different preferences.
- Six universities are available to support the hosting of MICE groups.
Impact on Business Operations
Precautionary Measures
Restoring Confidence
USPs of Northern Thailand
Sittipong Wongsomboon,
General Manager of Northern Smile Travel
- How has the recent severe flooding impacted your travel operations, including bookings, itineraries, and client demand for travel services?
Answer: The flood had a significant impact on many of my suppliers and the roads leading to certain destinations. One major issue we faced was customer cancellations. Additionally, we had to cancel several trips because we were unable to pick up clients due to inaccessible routes. Many of our suppliers were also unable to receive their own supplies, which disrupted their operations and forced them to cancel bookings as well. This was the extent of the disruption I experienced, but it affected most travel agents, even those whose offices weren't flooded. Their systems were still impacted, which compounded the challenges.
- Are there any collaborative initiatives between your company and government or local authorities to rebuild and promote Northern Thailand as a resilient and attractive destination?
Answer: The government has made efforts to assist us, not specifically for MICE travel, but in a broader context for northern Thailand, particularly Chiang Mai and Chiang Rai, and for those affected by the flood. A couple of months ago, following the flood, the Ministry of Tourism reached out to ask how they could help.
We requested support for the upcoming TTM+ event in June, asking the Tourism Council of Chiang Mai for 50 booths for northern Thailand's travel businesses, either at a discount or under a similar arrangement.
Additionally, the government has offered programs like TAT's Khon La Khreung, which covers half the cost of certain purchases, with a maximum subsidy of 800 baht. This translates to a saving of 400 baht for travelers. While this mainly benefits domestic tourists and provides only short-term relief, it is still somewhat helpful.
In the long term, however, this kind of support is a small part of the overall solution. I don't believe it will significantly impact or reassure travelers.
- What strategies is Northern Smile Travel using to reassure travelers and MICE planners that Northern Thailand remains a reliable and desirable destination?
Answer: We've made efforts to promote certain trips, especially after the first flood, which we initially thought would be the worst. We created activities to showcase areas in Chiang Mai that were unaffected by the flood. However, a few weeks later, the second, much more severe flood hit, and our efforts to reassure travelers didn't have much impact on tourism.
In reality, only about 10% of Chiang Mai was affected by the floods. We've focused on promoting destinations outside the city center or those that weren't impacted. Despite our efforts, the promotion hasn't had a significant effect. In Chiang Mai, our priority has been cleaning up and removing debris around the city.
We're doing our best, and the local government is also supporting us, although their response was slightly delayed due to the overwhelming challenges they faced.
For MICE planning, we continue to promote our products and programs, but it's difficult to predict what will happen next October. We're hopeful it won't be a repeat of this situation.
Impact on Business Operations
Collaboration with the Government
Restoring Confidence
