Presentation: China January 13, 2015

Team Introduction GSO Shanghai

Organization Wendy Wu Regional Director of Sales Working in the hotel sales industry for almost 20 years Used to work in Radisson Blu and LHW Shanghai Offfice Started to work in Meritus from January 2014 Michelle Jiang Regional Sales Coordinator Working in Meritus GSO Shanghai for more than 3 years

Information about China Market and Outbound Visitor

Country Profile Four leading cities: Beijing, Shanghai, Guangzhou and Shenzhen The second-tier cities mainly from Jiangsu, Zhejiang, Shandong & Sichuan (Chengdu and Chongqing)

Outbound Statistics Mainland China: more than 100 million outbound tours within 2014 as of the end of November, the first time in history. Overseas tourist destinations: Asia (89.5%, in which Hong Kong, Macau and Taiwan account for 70.4%), Europe (3.5%), Africa (3.0%), Americas (2.7%), Oceania (1.1%), and other regions (0.2%). China’s outbound tourism grew 10.8 folds from 8.43 million trips in 1998 to over 100 million in The six destinations receiving more than a million Chinese arrivals: Korea, Thailand, Japan, USA, Vietnam and Singapore. Source: China National Tourism Administration (CNTA)

Outbound Statistics

China’s Tourists: Facts and Figures 97% of the trips were for leisure purposes. 85% said the most important service offered by hotels is Mandarin- speaking staff. 67% prefer to make their own travel arrangements. 53% chose to book hotels online or through mobile apps. 73% will share their experiences and photos on social media. 6,707 yuan ($1,100) average spent daily when travelling abroad (excluding accommodation). Chinese tourists’ spending abroad is projected to exceed $155 billion in 2014, 20.8% increase compared with last year.

Chinese Travelers to Singapore ( )

Singapore: Visitor Arrival Analysis Overview (January – September 2014) From Jan – Sep 2014, IVA reached 11.4 mil (-3.7% YOY). Excluding China, IVA grew 1.5%. In September 2014, IVA reached 1.1 mil (-6.7% YOY). Excluding China, IVA fell 0.5%. Hong Kong (+21%), South Korea (+16%) and Vietnam (+13%) continued to be the top 3 growth markets to date as propensity for international travel continued to increase. China (-30%), Malaysia (-3%) and Australia (-3%) showed the largest absolute declines during Jan – Sep Source: Singapore Tourism Board

Singapore: Visitor Arrival Analysis

Declining Markets in YTD September 2014 China – Sep (-41%) / YTD Sep (-30%) Continuing decline in multi-destination travel: - Mainly from visitors twinning Singapore with Malaysia (-74% YOY). - Visitors twinning Singapore with Thailand also registered a 77% YOY decline. More mono-Singapore visitors: - Mono-Singapore visitors increased 22% YOY. - As a result, average length of stay among China visitors increased from 2.9 days to 4.4 days. Source: Singapore Tourism Board

On Untapped Potential from China Market

Develop New Potential Regions of China China can be divided into four business regions: Eastern, Southern, Western and Northern China. Potential cities in some region: -Eastern: Nanjing, Hangzhou, Wuxi, Suzhou, Jinan, Qingdao and Xiamen -Northern: Tianjin, Dalian and Shenyang Criteria of choosing potential regions/cities: -Direct flight (SQ, Silkair, Scoot and Tigerair) -Residents' consumption ability/overseas purchasing power -Trend of increasing outbound travel

Search Potential Business Channels Authorised Visa Agents (AVAs): - The Singapore Embassy in Beijing and Consulate-General offices in Chengdu, Guangzhou, Shanghai and Xiamen ceased to accept walk-in visa applications starting from Dec. 8, Chinese citizens can only proceed to any of their Authorised Visa Agents to submit visa application. - Total number of AVAs: 58 travel agents in China Airlines: - Contact airlines with direct flight to Singapore and transfer flight to Langkawi for future business cooperation - As for Singapore Airlines, they have own travel agent-SIA Holidays to promote Singapore hotels frequently

Requirements from GSO Shanghai

Detailed Requirements Efficient response to all FIT & group business Competitive rates/quotations Seasonal promotions especially during China long public holidays to compete with other hotels Free-sale calendar to GSO office and contracting clients promptly Support of FAM trip / Sales Mission / Road show

Travellers Requirement

Travellers Requirements from Hotels Mandarin-speaking staff due to increasing FIT travel Diversified Chinese foods for hotel breakfast Free wifi Free upgrade of VIPs/team leaders Unique exclusive experience of local culture

What Sales Hotel Need to Change to Attract to China Market

Some Suggestions Contracts or promotions in Chinese version Assign complimentary rooms to the decision makers of key/productive clients if they come to Singapore/Langkawi for site inspection Offer better rates as comparing with competitive hotels Special packages for theme travel, such as wedding package of Langkawi

What GSO Need from Hotels to Generate More Revenue

Special Requirements Flexible payment method for key clients (settle by monthly) Room allotment to key clients / shortening cut-off days in low and shoulder seasons Complimentary room policy (every 16 paying rooms to get 1 room free) Room quotations including accommodation and airport pickup for FIT Travel

5 Key Wins into Year 2014

5 Key Wins Sourced 5 new GSO accounts with well over $300K by end of 2014 Achieved FIT production to 504 nights (Ctrip with 6314 nights ） in 2014, while 261 nights (Ctrip with 3,300 nights) in 2013 Conducted 1 MHR Sales Mission for 2014 to include 2 properties participation (MOS & MMS) and 2 customer events in Beijing & Shanghai Attended IT&CM Roadshow 2014 with STB in Shanghai to promote MHR to more MICE/corporate clients of China Developed new regions of China such as Chengdu and Chongqing with productions to Singapore and Langkawi from 2014