An ever-present conundrum facing any hotel manager worth their salt is devising promotional events that capture the attention of potential guests and make a big splash in the marketplace. For Samuel Lee, head of the Sheraton Hsinchu, the answer is simple: lock ROC President Ma Ying-jeou in an elevator while a ravenous Taiwanese media horde waits in the lobby.
“This was a very effective promotion,” Lee said of the three-minute impromptu break Ma took in following his address on Taiwan’s role in the international community at the World Vision International Asia Forum in August.
“Guests began asking me if the president was staying at the hotel but I had to tell them the truth,” he said Oct. 1 in an interview with Taiwan Today. “I even tried to get Ma to stay in the hotel by offering him a complementary night’s accommodation, but the president was in too much of a rush to stop and chat.”
Fortunately, this unintentional foray into the world of ambush marketing is not the only trick in the 40-year-old Sheraton manager’s bag when it comes to boosting the profile of his 770-room hotel at home and abroad. Lee has his fingers in all manner of promotion pies, and is always open to new ideas, whether they be a four-hour all-you-can-eat-and-drink Mid-Autumn Festival barbecue where the Moet Chandon champagne flows like water, or partnering with foreign and local luxury brands to create cross-marketing synergies.
“Hsinchu is a big area that offers something for everyone. Mouthwatering cuisine, beautiful scenery and rich cultural heritage are all part and parcel of its charm. My goal is offer these experiences to guests in a warm environment with equally warm service.”
A key plank in Lee’s strategy revolves around fashioning a bona fide five-star oasis of comfort that leaves guests coming back for more. Foodies can feast three times per day at a smorgasbord or Cantonese restaurant; fitness junkies are able to sweat away to their hearts’ content at a professionally-staffed gym, which puts many non-hotel facilities to shame; and for those culture vultures looking for a hit, any one of nine general or 12 specialized tours of Hsinchu can be arranged with a call to the front desk. In addition, guests can remain in contact with the real world during their stay with a visit to the Link center, where options such as free Wi-Fi, PC workstations, magazines and newspapers are available 24/7.
While all these features play their part in helping guests enjoy a relaxing break and raising satisfaction levels, the true test of a hotel is the quality of its beds. Lee said the Sheraton is more than up to this challenge, with its Sweet Sleeper providing an “unbeatable” night’s rest.
“Our beds have nine layers of linen creating an envelope of comfort. Most foreign guests fall in love with them, but we have some way to go in convincing local guests of their merits as they prefer less complicated arrangements.”
Hsinchu County Government Magistrate Chiu Ching-chun views the Sheraton and other top hotels as integral parts of the region’s tourism appeal, and at the vanguard of private sector efforts to transform the region into one of the leading tourism destinations in Taiwan.
“There is no question that the Sheraton’s five-star service and reputation for excellence is contributing to the improvement of local hospitality and tourism standards,” Chiu said. “The presence of this multinational hotel group in Hsinchu since April last year is also a vote of confidence in the county and its future as a strong player in one of Taiwan’s signature industries.”
In addition to first-rate accommodation, Chiu said, Hsinchu enjoys the advantages of being located near Taipei and connected to the rest of the country via peerless rail and road networks. It also boasts a wide variety of attractions such as amusement parks, cycle paths and golf courses, helping lift visitor numbers to 6.14 million last year, up nearly 2.5 percent from 2009, he added.
Although mainland China is Hsinchu’s No. 1 source of overseas visitors, the county government is doing what it can to attract tourists from other destinations. Plans are on the drawing board for county officials to attend travel fairs in Europe and North America next year, and every opportunity is being taken to remind the Tourism Bureau not to put all its eggs in the Beijing basket.
“Along with local industry participants, we are working with the central government to promote Hsinchu tourism,” Chiu said. “In doing so, we hope an increasing number of visitors, irrespective of where they come from, will choose to tour the region.”
Echoing Chiu’s remarks, Lee said the Sheraton is cooperating with the county government but it is early days yet. “What we really need are people who genuinely understand marketing and communication channels. The county government welcomes suggestions but something seems to be getting lost in translation.”
In response, Chiu said that concerning promotion strategies, the county government still has long way to go to catch up. “Interacting with private sector firms helps increase our competiveness in this regard, and is a goal we want to achieve.”
A prime example of this disconnect is the almost blinkered approach of the central and local governments to mainland Chinese tourism. Even though the numbers paint a less than flattering picture of this segment’s impact on Taiwan’s economy, time, money and effort continued being poured into funding greater efforts to lure more of these tourists across the Taiwan Strait.
“Targeting the mainland Chinese market is not the only thing the Tourism Bureau should be doing.” Lee said. “This policy delivers benefits to Taiwan’s tour companies and the owners of smaller hotels, but for Taiwan’s five-star operators it does nothing at all because mainland Chinese tourists are on tight budgets.”
“The fact of the matter is that Hsinchu is not the primary choice of mainland Chinese tourists and greater resources need to be channeled into alternative marketing and promotion. We have not seen any individual visitors, and most mainland Chinese who stay in five-star hotels are communist officials who have been invited to Taiwan.”
Lee recommends the bureau refocus on the Western market and more affluent Asian countries. Putting his money where his mouth is, the Sheraton manager already plans to bring Australia and South Korea into the hotel’s customer mix, using them to improve upon a respectable 50 percent year-on-year increase in guest numbers for 2011.
“The U.S., Japan and Hong Kong are our three top sources of overseas customers, Lee said. “We are missing those Australians and South Koreans who are visiting Taiwan but not staying with us … more needs to be done to better understand these markets.”
To this end, members of the hotel’s sales team are set to participate in travel fairs Down Under next year, and closer working relationships will be established with online travel agents in South Korea. “The name of the game is letting people in these countries know there is a Sheraton in Hsinchu and it is ready, willing and able to meet all their needs,” Lee said.
The meetings, incentives, conferences and exhibitions market is another area that offers establishments such as the Sheraton Hsinchu a raft of opportunities. Over the past few years, the central government has targeted the industry and MICE-related tourism products for promotion, aiming to build Taiwan into Asia’s undisputed MICE hub. By the end of 2011, the Bureau of Foreign Trade expects these efforts to have created 130,000 new jobs, trained 2,560 MICE professionals, attracted US$430 million in private investment and generated US$83.3 billion of direct and indirect benefits.
At present, the Sheraton holds a small but lucrative slice of the domestic MICE pie, and is working to expand its client base outside construction, insurance and pharmaceutical companies. With at least one major event held at the hotel each month, client feedback has been positive but more needs to be done in tapping this niche market opportunity.
“Focusing on Taichung and Kaohsiung is the best way forward for now,” Lee said. “For example, one insurance company in Kaohsiung has 1,500 people in its office, so hosting a seasonal from a firm of this size is big business.”
Lee is justifiably proud that his hotel is the only one in Hsinchu capable of landing major MICE bookings. Rival establishments such as the Ambassador, Carlton, King Yatt, Lakeshore and Royal are simply not large enough to enter the market. In fact, as the second largest hotel in Taiwan behind the Grand Hyatt Taipei, the Sheraton Hsinchu is well positioned to be Taiwan’s MICE flagbearer.
But regarding the international MICE market, Hsinchu is still not moving ahead, despite central and local government agencies making all the right noises. Lee commends public officials for setting their sights on this business, but feels something is lacking in the execution. He suggests appointing a MICE tsar to help cut through the red tape, take inventory of the country’s MICE-related services and facilities and promote these overseas.
“Earlier this year we visited the Government Information Office and Ministry of Foreign Affairs to let them know there is a five star hotel in Hsinchu ready, willing and able to host MICE events. But as they are not familiar with us yet, it will take time for word to get out.”
Cooperating with Hsinchu Science Park Administration and travel agents such as Taipei-based Golden Foundation has delivered up MICE bookings for the hotel, but it is the Tourism Bureau that Lee perceives as the key to unlocking this market’s potential.
“We met with them once but they wanted to know what Hsinchu can offer the overseas MICE market. So, we had to go back to the county government and try to work with them. We have told them that we need some assistance with local coordination but it really is a case of wait and see.”
Chiu, who acknowledges the import of the MICE industry to Hsinchu tourism’s bottom line, sympathizes with Lee’s position and said more is being done to improve coordination between hospitality and tourism operators, and the local and central governments.
“The MICE industry is a valuable niche market that can deliver benefits to all participants,” he said. “The county government is striving to put in place a promotion system that will ensure Hsinchu is at the top of the list when international and domestic opportunities arise.”
One success born of Lee’s efforts to boost his hotel’s profile with the central government was the 14-day Taiwan by Rail tour, which wrapped up Sept. 17 in Taipei. Comprising 51 rail enthusiasts from Australia, Japan, Germany, New Zealand, the Philippines, Spain and the U.K, the group stayed in the Sheraton for one night on the recommendation of the GIO.
“Many of the participants were pleasantly surprised to discover there was a Sheraton in Hsinchu,” Lee said. “I am confident they will return home and share their positive experience here, helping get the message out about what the hotel and region has to offer.”
Bringing more groups such as Taiwan by Rail to Hsinchu is a goal of the central and local governments, and one that looks likely to be realized following the recommencement of full operations on the historic Neiwan Line from the middle of next month. Situated in the easternmost part of Hengshan Township, Neiwan is one of Taiwan’s three remaining branch lines constructed during the Japanese colonial era (1895-1945).
Although service between the Taiwan Railways Administration station in Hsinchu City and Neiwan was halted in 2007 by work on the new Liujia Line, passenger numbers did not suffer noticeably. But in recent TRA customer satisfaction surveys, some respondents expressed disappointment with the section of the line they could ride, citing overcrowding and difficulty accessing stations as reasons for not taking the train again.
Chiu is not discouraged by these objections, however, and welcomes the chance to work hand in hand with the TRA and Tourism Bureau in promoting the Neiwan Line. “The reality is that this rail route will soon be hosting tourists from all over the country and abroad. With the right promotion and support, there is every reason to expect the line can take its rightful place at the head of Taiwan rail trip table.”
For Lee, the Neiwan Line is another feather in Hsinchu’s cap that will hopefully bring more visitors to the region and to his hotel as well.
“We are a new establishment that no one comes close to in terms of service and facilities, he said. “What is needed is more developments in the same vein that will promote the hotel’s name overseas and let people know we are here in Hsinchu.” (JSM)
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