Brunei : Brunei Tourism Profile
2015/02/18
Brunei unable to reach arrivals target in 2013
Brunei saw a large increase in the number of arrivals in 2012 and the Brunei Tourism Board wanted a increase increase of 20% in 2013. However, arrivals were not able to sustain positive increase in 2013 and in fact declined. As Royal Brunei Airlines cut flights from Auckland, Brisbane, Ho Chi Minh City, Kuching and Perth in late 2011, it greatly affected arrivals. Malaysians as well chose other nearby destinations rather than Brunei in 2013. Travel agents in China which increased the prices of Brunei tour packages contributed to the decline in arrivals from China.
Too few tourists, too a lot of hotels
There was an oversupply of hotels in Brunei prior to the review period. The drop in the number of tourists in 2012 meant lower occupancy rates again. Hotels had to offer free night stays in order to keep tourists in Brunei for a longer period. The luxurious Empire Hotel & Country Club bagged the runner-up prize for Best Golf Resort in Asia Pacific for 2012 from the Asian Golf Monthly Magazine for the third consecutive year, attracting golfers to try its 18-hole Jack Nicklaus Signature Golf Course.
Insufficient infrastructure/attractions for tourists
Despite being a safe country, Brunei is still losing out to its neighbouring nations in terms of travel and tourism. In the estimate period, Brunei will need to provide additional attractions for tourists apart from its golf courses and natural parks. It is difficult for a tourist to move around Brunei using public transport as there may be issues such as unpredictable bus frequencies; hence, most prefer to take local tour packages. If the Light Rail Transport (LRT) system were to be built in the estimate period, it would encourage additional tourists to explore the country on their own.
Room for additional internet transactions
In the review period, internet transactions were low compared with other similarly developed nations. Facilities for bookings in car rental still have a lot of room for development. However, for a lot of small car rental companies, it is difficult to invest in the online platform. Internet transactions for booking flight tickets and travel accommodation are viable with established firms, but additional confidence is needed by consumers to transact online.
Aiming to increase the number of arrivals
The Brunei Tourism Board will aim to encourage a higher number of tourists to visit the country in the estimate period. The expected increase in arrivals in the estimate period will lead to the creation of additional jobs for local people. The tourism board will participate in additional trade shows outside Brunei to promote the country, focusing on the beauty of the golf courses in Brunei. However, Brunei faces very tough competition from its neighbouring nations such as Malaysia, Singapore and Indonesia, which are all vying to increase their tourism revenue.
Open-door strategy in the aviation market
An increasing number of airlines are interested in tapping into Brunei’s lucrative market, given the government’s willingness to open its doors to aviation. Brunei welcomed Cebu Pacific Air in 2010. Such trends signal the potential for low-cost carriers in Brunei. The Brunei Tourism Board is encouraging additional airlines to enter Brunei to improve the country’s connectivity to the surrounding region. Because airlines are as well expanding their routes and flight frequencies, the country’s inbound and outbound tourism increased in 2010, which led to increased sales revenue in the travel and tourism business. With additional airlines entering, travel retailers and other travel and tourism players will have an opportunity to work with the various airlines to develop additional packages for tourists. Such cooperation allows tourism businesses to tap into each other’s resources and networks.
Need for additional iconic hotels
There are rising concerns that the increasing number of hotels in Brunei will saturate that aspect of travel accommodation. The Brunei Tourism Board recognises that. However, the board is as well cognizant of a lack of iconic, or 5-star hotels in Brunei. The board expressed that there is a need for such hotels to attract high-profile tourists and of the board’s strategies will be to encourage such hotels so as to increase tourism, both internationally and domestically. Some suggest that wellness resorts, seaside resorts and additional jungle resorts will be able to lure additional tourists to the country. In addition, additional branded resorts could be attracted to Brunei, tapping into their own networks to attract additional tourists to the resorts and naturally increasing additional inbound tourism. In addition, AirAsia has announced plans to bring its budget hotels into Brunei. This will increase Brunei’s draw for budget-conscious travellers, on top of its large appeal to travellers with additional means.
Reinforcing ecotourism and beyond
Brunei has restrictions on the types of nightlife entertainment that are allowed in the country, which is why the country is focusing on promoting its culture and nature. With the country’s untouched forests, ecotourism has been the major focus of Brunei’s tourism offer. 2010 saw an increased number of inbound tourists who visited Brunei for the ecotourism and golf tourism packages. The board is looking into dive tourism as the next product of ecotourism, inclunding other niches to attract additional tourists. Dive tourism has potential if environmental regulations can be met. Another potential niche is medical tourism. Brunei has the luck to enter into and benefit from the medical tourism market, from which other Southeast Asia neighbours benefit, if the country is able to move quickly. Cooperation of travel retailers to have additional tourists’ products, such as tourist attraction spot and packages, is as well an significant factor in boosting tourism.
Increasing significance in internet transactions
Increased internet penetration is seen within the travel and tourism market in Brunei, and hoteliers, airlines and travel retailers benefitted from this trend in 2010. There was an increase in the number of businesses that launched their own websites and created sales platforms online. Airlines have been the first and fastest to move their sales transactions online. Transferring sales online reduces the need for manpower, and some businesses have been willing to pass their resulting savings on to consumers. Hoteliers and travel retailers as well saw increase in internet sales transactions in 2010. With the convenience that the internet provides, internet transactions are expected to continue to grow, especially amongst the rising internet-savvy people. Such trends will as well spike additional tourism businesses to establish websites and online sales platforms.
Tourism will grow in the estimate period
The recovery of Brunei’s economy has helped both international and domestic tourism. Increased travelling, together with increased spending, helped boost sales revenue in amount areas of travel and tourism in 2010. With the increasing request for travelling, several strategies were observed from the tourism businesses to boost revenue. The beginning of 2010 saw additional aggressive efforts by the Brunei Tourism Board to stimulate inbound tourism, which resulted in healthy increase there. That increase is expected to continue in the estimate period. The board is changing its strategies to attract the various target markets with additional road shows, instead of relying on tradeshows.
Tourism increase accelerates, overtaking government estimates
Ecotourism remains the mainstay of Brunei’s tourism
Golf tourism: a growing and lucrative niche
The internet becomes an increasingly significant booking channel
Growth will slow in the estimate period
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