Yours Truly,

1

• Yours Truly,
• Tan Siew Hoon

2
Market Overview

• Population 26.64 Million (as of May 06)
  Department of Statistics Malaysia
• Population Breakdown Malay 50.4, Chinese 23.7,
  Indigenous 11, Indian 7.1, others 7.8 (2004
  est.)
• Drivers of Economy Chinese population
• Total Visitors to Australia (from 149K- 136K)
  8 decrease
• Total Visitor Nights to NSW (from 669K to 936K)
  39.9 increase
• High Repeat Visitorship to Australia 72

3
Malaysian Government Economy

• Government Prime Minister Abdullah Badawi, under
  Ruling Party of Barisan National
• Economy 5.9 in the 2nd quarter of 2006. Exceed
  1st quarter growth of 5.5 growth
• (Oct 06 Department of Statistics Malaysia)
• BUT Unfavourable Exchange rate 1 AUD MYR 2.64

4
Consumer Trends

• Price/ Value Conscious
• Longer length of stay (from 14.5N to 24.5N) 69
  increase
• Increasingly late bookings (2 weeks)
• Internet savvy, but still reliant on print media
  and travel agents.
• 79 rely on agents as key sources of
  information
• 42 rely on travel promotions/fairs as key
  sources of info in planning trip
• 5th Highest Ave Spent (A2278) in NSW across ALL
  international Markets
• MasterCard Index of Travel Survey 2nd Half
  2006)

5
Consumer Trend- MATTA Travel Fair

• gt90,000 visitors
• RM 90M Sales
• Destination Competition
• Evergreen - China, Hong Kong Australia
• New - Japan and Korea
• Renewed interest -UK, Europe, US
• Increase outbound travel from suburbs,- Eg Penang
  MATTA Fair - 41K visitors, RM25 million sales
  Australia Top 5
• The next MATTA Fair March 16- 18, 2007

6
Trade Update Aggressive NTO Competition

• NTOS (Singapore, Taiwan, Macau and Turkey Tourism
  Boards) focus on thematic experiences events
• HK KNTO Targeting Muslim segment with
  buyer-meet-seller session, trade media famils.
• British Tourism Offering tactical funding for
  Visit Britain campaign

7
Trade Updates

• Outbound Travel Traditionally dominated by Klang
  Valley players

GTT
Holiday Tours
Msian Harmony
Excellence Hols
Mass Market

• Agent Cluster
• GEM Travel
• Mitra
• Sunway

Incentive Mayflower Harpers BMC Prime
HTT Falcon Holiday Tours
Niche Market
MSL
Group Focus
FIT Focus
8
Aviation Update

• Flight Frequency to Sydney- 58 weekly
  flights- as of July 06
• Direct Flights 20x weekly (MAS 14, Austrian 6)
• Indirect Flights (weekly)
• SQ 21x
• Qantas 14x
• British Airways 7x
• RBA 3x
• Austrian Airlines terminating flights from KUL
  to Sydney from Mar 07 onwards.
• MAS -Virgin Blue Agreement Seemless connectivity
  (30 Aug 06)

9
Aviation Update

• Low Cost Carrier Air Asia
• 16M Customer base
• Carried gt20M customers as of Aug 06
• Taken over 96 (total 118) of MAS domestic routes
  as of Mar 05.
• Flies to Regional destinations (Bali, Bangkok,
  Chiangmai, Hatyai, Hanoi, Manila, Phuket, Hanoi)
• Free seats and low price strategy

10
6 Key Objectives in Malaysia Market

• Trade Education Product Development to increase
  depth of experience
• Increase length of stay in Sydney NSW
• Increase dispersion to Sydney Surrounds with min
  1N stay in each region
• Increase Spend in NSW
• Develop new product experiences via market
  segmentation
• Develop partnerships between agents and NSW
  suppliers

11
Key Challenges Action Plan in Malaysia Market
12
Objective Increase Depth of Experience
Regional Dispersion
All Australia Supplement
Strategy Integrated Best of Australia Campaign
with PR/ Media Focus on Thematic Experiences
Advertorial in the Star
13
Objective Increase Depth of Experience
Regional Dispersion
BOA Family Coupon Booklet offering discount for
1st child
Consumer Brochure
Strategy Integrated Best of Australia Campaign
Focus on Family Fun Best of Sydney City
Country Tactical Package with Min 2N Stay in
Region
14
Objective Increase Depth of Experience
Regional Dispersion

• A major break-through on prime time TV featuring
  foreign destination, 1.2 million audience
• Malaysian Celebrity endorsement
• Total encompassing campaign of
• TV broadcast , Print publicity, Online exposure ,
  
• Consumer engagement via contest
• Call to Action Best of Sydney Australia
  tactical
• Campaign

Strategy Integrated Best of Australia Campaign
with Travelogue Featuring Famous Malaysian
Celebrities
15
Objective Develop New Market Segment
VJP First Ever Malay Media Journalists (4 pax)
to Sydney (July 06)
Article in Mingguan Malaysia
Article in Harian Metro
Article in Harian Metro
Strategy Muslim Market - Raise profile of
Sydney as a Muslim-friendly destination
16
Objective Develop New Market Segment
Article in Harian Metro
Article in Harian Metro
Strategy Muslim Market - Raise profile of
Sydney as a Muslim-friendly destination
17
Objective Formalise partnerships for the
development and promotion of Sydney NSW
Ads in Star
Consumer Flyer
Strategy Strategic Partnerships with Holiday
Tours MasterCard International
18
Market Opportunities Why Continue to Invest in
Malaysia

• High Affinity Familiarity - Repeat visitation
  (72) / Easy to convert
• 69 Increase in Length of Stay (from 14.5N to
  24.5N)
• Good Spend 5th Highest average expenditure per
  visitor (A2277) spent in NSW
• Highest TIEV (A567M) in year 2006, even with
  decreasing number of Malaysian visitors
• Strong agents support
• June IVS 06

19
Market Opportunities Why Continue to Invest in
Malaysia

• RM15 billion Infrastructure projects by
  Government (9th Malaysian Plan)
• Untapped market potential
• Emerging middles class Malay segment (almost 2
  million Urban Malays). High propensity to travel
  but lacks understanding.
• Average annual 5.1 growth from 2006- 2015 by TFC
  June 06

20
How You Can Be Involved! Upcoming Market
Opportunities- Jan- Dec 07
21
(No Transcript)