Cheese Bi-monthly Report “First to Last Mile Communication”

November、December,2015

Content

Travel Update ………………..………………..…P.3-10

Market Watch …………………………….…....P.11-15

Case Study…………………...……………….....P.16-25

Media News……………….……..................P.26-31

About Cheese ……………………………….....P.32-33

Travel Update

Travel Update

First Destination October, 2015 October, 2014Change +-%

Jan.-Oct., 2015

Jan.-Oct.,2014

Change +-%

ASIA 1,115,273 990,199 12.63 10,440,154 9,408,714 10.96 香港 Hong Kong 182,691 173,328 5.40 1,695,946 1,727,143 -1.81 大陸Mainland China 318,599 302,986 5.15 2,860,714 2,760,860 3.62 日本 Japan 351,495 270,304 30.04 3,215,067 2,513,925 27.89 韓國 Korea,Republic of 47,012 56,795 -17.23 406,668 531,109 -23.43 新加坡 Singapore 25,819 22,556 14.47 278,929 249,606 11.75 馬來西亞Malaysia 16,309 16,021 1.80 177,768 172,357 3.14 泰國 Thailand 40,896 39,632 3.19 523,276 343,154 52.49 菲律賓 Philippines 16,192 11,677 38.67 154,085 113,413 35.86 印尼 Indonesia 12,820 12,921 -0.78 154,078 146,825 4.94 汶淶 Brunei 1 0 - 278 296 -6.08 越南 Vietnam 33,694 26,877 25.36 341,927 285,345 19.83 澳門Macao 47,602 42,147 12.94 433,462 417,869 3.73 緬甸Myanmar 1,801 2,071 -13.04 16,735 18,633 -10.19 柬埔寨 Cambodia 5,605 5,439 3.05 55,914 57,738 -3.16 亞洲其他 Others 14,737 7,445 97.94 125,307 70,441 77.89

AMERICA 41,081 38,433 6.89 467,842 420,643 11.22 美國 United States of America

35,795 32,289 10.86 405,784 358,497 13.19

加拿大 Canada 5,286 6,144 -13.96 62,040 62,090 -0.08 EUROPE 14,582 12,914 12.92 143,861 117,634 22.30 法國 France 3,752 3,718 0.91 36,271 33,644 7.81 德國 Germany 4,775 3,791 25.96 47,038 39,351 19.53 義大利 Italy 0 0 - 14 0 -荷蘭 Netherlands 2,589 1,989 30.17 28,486 20,284 40.44 瑞士 Switzerland 0 0 - 0 0 -英國 United Kingdom 0 0 - 0 0 -奧地利 Austria 3,464 3,410 1.58 28,512 23,064 23.62 歐洲其他 Others 2 6 -66.67 3,540 1,291 174.21

OCEANIA 10,166 8,346 21.81 96,354 99,658 -3.32 澳大利亞 Australia 8,828 6,505 35.71 83,951 71,784 16.95 紐西蘭 New Zealand 0 0 - 0 0 -帛琉 Palau 1,330 1,828 -27.24 12,247 27,750 -55.87 大洋洲其他 Others 8 13 -38.46 156 124 25.81

AFRICA 0 0 - 11 7 57.14 Grand Total 1,181,248 1,049,968 12.50 11,149,583 10,049,796 10.94

The Philippines was the fastest growing destination for outbound travelers in October 2015.

The number of outbound departures by Taiwan nationals grew 12.5% in October 2015 from a year earlier to 1.18 million, according to the latest Tourism Bureau statistics. In the first ten months of the year, outbound departures rose 10.94% year-on-year to 11.15 million.

The destination showing the highest rate of growth from January to October was Thailand at 52.49%, followed by the Netherlands (40.44%),the Philippines (35.86%), and Japan (27.89%)

*For outbound tourist statistics, Taiwan uses the first landed city rather than the final destination in compiling the figures. This is the main reason for statistical differences between Taiwan and other countries.

Unit: Persons

Outbound Departures of Nationals of the Republic of China by Destination, October & Jan.-Oct., 2015

Travel UpdateFirst Destination

November, 2015

November, 2014

Change +-%Jan.-Nov.,

2015Jan.-Nov.,

2014Change +-%

ASIA 986,063 833,452 18.31 11,426,217 10,242,166 11.56 香港 Hong Kong 153,177 137,070 11.75 1,849,123 1,864,213 -0.81 大陸Mainland China 286,248 248,285 15.29 3,146,962 3,009,145 4.58 日本 Japan 307,177 241,429 27.23 3,522,244 2,755,354 27.83 韓國 Korea,Republic of 46,032 47,491 -3.07 452,700 578,600 -21.76 新加坡 Singapore 20,931 18,194 15.04 299,860 267,800 11.97 馬來西亞Malaysia 12,703 13,884 -8.51 190,471 186,241 2.27 泰國 Thailand 38,467 34,094 12.83 561,743 377,248 48.91 菲律賓 Philippines 13,176 9,759 35.01 167,261 123,172 35.79 印尼 Indonesia 11,487 12,093 -5.01 165,565 158,918 4.18 汶淶 Brunei 4 0 - 282 296 -4.73 越南 Vietnam 33,078 23,810 38.92 375,005 309,155 21.30 澳門Macao 46,936 34,723 35.17 480,398 452,592 6.14 緬甸Myanmar 1,472 1,983 -25.77 18,207 20,616 -11.69 柬埔寨 Cambodia 5,126 5,219 -1.78 61,040 62,957 -3.04 亞洲其他 Others 10,049 5,418 85.47 135,356 75,859 78.43

AMERICA 41,537 36,569 13.59 509,379 457,212 11.41 美國 United States of America

36,969 32,983 12.09 442,753 391,480 13.10

加拿大 Canada 4,564 3,586 27.27 66,604 65,676 1.41 美洲其他 Others 4 0 - 22 56 -60.71

EUROPE 10,084 9,096 10.86 153,945 126,730 21.47 法國 France 2,519 2,950 -14.61 38,790 36,594 6.00 德國 Germany 3,449 3,015 14.39 50,487 42,366 19.17 義大利 Italy 0 0 - 14 0 -荷蘭 Netherlands 1,461 1,442 1.32 29,947 21,726 37.84 瑞士 Switzerland 0 0 - 0 0 -英國 United Kingdom 0 0 - 0 0 -奧地利 Austria 2,651 1,688 57.05 31,163 24,752 25.90 歐洲其他 Others 4 1 300.00 3,544 1,292 174.30

OCEANIA 11,152 7,002 59.27 107,506 106,660 0.79 澳大利亞 Australia 9,952 5,575 78.51 93,903 77,359 21.39 紐西蘭 New Zealand 3 0 - 3 0 -帛琉 Palau 1,197 1,425 -16.00 13,444 29,175 -53.92 大洋洲其他 Others 0 2 -100.00 156 126 23.81

AFRICA 6 0 - 17 7 142.86 Grand Total 1,048,893 886,182 18.36 12,198,476 10,935,978 11.54

Austria was the fastest growing destination for outbound travelers in November 2015.

The number of outbound departures by Taiwan nationals grew 18.36% in November 2015 from a year earlier to 1.05 million, according to the latest Tourism Bureau statistics. In the first eleven months of the year, outbound departures rose 11.54% year-on-year to 12.20 million.

The destination showing the highest rate of growth from January to November was Thailand at 48.91%, followed by the Netherlands (37.84%),the Philippines (35.79%), and Japan (27.83%)

*For outbound tourist statistics, Taiwan uses the first landed city rather than the final destination in compiling the figures. This is the main reason for statistical differences between Taiwan and other countries.

Unit: Persons

Outbound Departures of Nationals of the Republic of China by Destination, November & Jan.-Nov., 2015

Travel Update Taiwan’s Big Carriers Promote Special Offers

Good deals are expected at the Taipei International Travel Fair in early November, but Taiwan’s two biggest international airlines, China Airlines and EVA Airways, got an early start. They have fueled buying interest with effective marketing strategies, including offering travel fair promotions online in October and promoting special prize drawings. EVA Air said it sold 80% more tickets on its official website in October than in the same month a year earlier, and China Airlines’ online ticket sales volume during the month rose 60% year-on-year. They are hoping the promotions will turn the traditionally weak fourth quarter for the aviation sector into a strength. (Economic Daily News, Nov. 3, 2015)

International Travel Fair Draws Record Crowds

Attendance at this year’s International Travel Fair was up 7 percent from last year at 337,319, setting a new record. The hours of the final day of the fair on Monday Nov. 9 were extended to 7 p.m. to accommodate the big crowds, enabling 73,027 people to visit the show that day, the first time attendance on a workday exceeded 70,000. The travel industry also did very well during the show’s four days, with travel packages to Southeast Asia and Japan leading the way. The interest in Japan was driven by the yen’s depreciation and the move by airlines to add capacity on routes between Taiwan and Japan, which has led to substantial growth in both tours and independent travel there. Travel products to Japan accounted for 40% to 50% of sales at the fair, according to some travel agencies. Trips to China came second, with some owners of smaller businesses placing orders for tours involving 100 employees. (Nownews, Nov. 10, 2015)

Travel Update

V-Air Opens Three New Routes to Japan

Budget airline V-Air has received the green light to operate three new routes between Taiwan and Japan. V-Air will phase in service to Nagoya, Fukuoka and Osaka beginning on Dec. 15, becoming the first international low-cost carrier to serve both Nagoya and Fukuoka from Taiwan. The airline said it would celebrate the new routes by offering two rounds of promotional airfares between Taipei and the three destinations. In the first promotion, set to start on Nov.13, one-way fares before taxes will start at NT$333, and round-trip fares including taxes will start at under NT$2,300. (ETToday, Nov. 12, 2015)

Taiwan Tourism Bureau Opens Office in Shanghai

The Taiwan Strait Tourism Association, which represents the interests of Taiwan’s Tourism Bureau in China, held a ceremony at the Gran Melia Shanghai on Nov. 15 to celebrate the formal opening of a new branch office in Shanghai. The ceremony was hosted by Tourism Bureau Director-General David Hsieh and China National Tourism Administration Vice Chairman Du Jiang. The new office will be responsible for drumming up interest in Taiwan’s diverse tourism attractions and travel products in the economically prosperous Huadong region. (Tourism Bureau, Nov. 15, 2015)

Travel Update

More Flights, New Routes after Completion of Airport Runway Project

Airlines are waiting in anticipation for the nearly year-long overhaul of Taiwan Taoyuan International Airport’s north runway to be completed. The project, to be completed by Jan. 8, 2016, will give the airport two active runways again and increase the number of flights that can land and take off from 33 to 50 per hour. Airlines plan to take advantage by introducing new routes and additional flights before the Lunar New Year holiday in early February, with a big increase in flights to Japan and South Korea and new destinations in China expected. AirAsia Japan and Myanmar Airways have also applied to operate flights to the airport. AirAsia Japan is interested in offering daily flights between Taoyuan and Nagoya, Sapporo and Okinawa, with schedules still being discussed with the airport. Myanmar Airways had originally planned to launch flights in the fourth quarter, but unable to get attractive time slots, it decided to hold off until the completion of the north runway project before beginning service. (Commercial Times, Nov. 19, 2015)

Marriott to Acquire Starwood, Become World’s Largest Hotelier

Marriott International has announced it will take over rival chain Starwood Hotels & Resorts Worldwide in a US$12.2 billion deal that will make it the world’s largest hotelier. Once the merger is completed, it will leave Marriott with more than 5,500 properties and more than 1.1 million rooms in over 100 countries, and 35% of its revenue will come from outside the United States. (AP, Epoch Times Nov. 16, 2015)

Travel Update

Indonesia Pushing for more Taiwanese Visitors

Indonesia has given visa-free treatment to several countries and territories in two phases this year to help meet its goal of attracting 10 million tourists in 2015. Taiwan was included in the program, and its citizens were able to save the US$35 visa fee for travel to some of their favorite destinations, such as Bali or Batam Island off the coast of Singapore, starting on Oct. 8. Taiwan is Indonesia’s seventh biggest source of tourists, behind only Singapore, Malaysia, China, Australia, Japan and South Korea, and the Southeast Asian country hopes to increase Taiwan visitor numbers from an estimated 300,000 in 2015 to 325,000 in 2016. (TTN, Nov. 22, 2015)

Singapore Launches ‘Inspire 2.0’ Tourist Incentive Plan

The Singapore Tourism Board has launched a 2.0 version of its “In Singapore Incentives & Rewards” (INSPIRE) plan to attract more Taiwanese visitors and promote business travel and conventions. Under the reward program, travel agencies, hotels, entertainment parks, top attractions, and the aviation sector offer integrated travel incentives and create value-added experiences. To accommodate the changing Taiwan tourist market, the Tourism Board has enhanced its original INSPIRE program with the addition of two more partners, bringing the total to five: the Changi Airport Group, Gardens by the Bay, Resorts World Sentosa, Sentosa Development Corporation and the Singapore Turf Club. (United Daily News, Dec. 19, 2015)

Travel Update

Tickets for Added New Year’s Flights to Go on Sale on Dec. 28

The Civil Aeronautics Administration (CAA) has approved a first group of flights between Taiwan and China that will be added to accommodate the surge in travelers during the Chinese New Year holiday, and airlines will be allowed to pre-sell tickets on their websites for these flights from Dec. 28 to 29. International airlines have applied to provide 129 additional flights (63 to Shanghai Pudong, five to Beijing, and 61 to other destinations) during the holiday period from Jan. 25 to Feb. 22, 2016, while Chinese airlines have applied for 539 extra flights (183 to Shanghai Pudong, 36 to Beijing and 320 to other destinations), according to the CAA. Airlines may still adjust their plans to add flights during the holiday based on market demand, and the CAA suggested that travelers contact the carriers or travel agents to get the latest schedules. (Liberty Times, Dec. 25, 2015)

Market Watch

Market Watch Taiwan’s Economic Growth to Fall Below 1% in 2015: TIER

The Taiwan Institute of Economic Research (TIER) has lowered its forecast for Taiwan’s economic growth in 2015. In its latest forecast issued on Nov. 5, the TIER estimated full-year growth at 0.83%, down 2.28 percentage points from a previous projection in July. TIER President Lin Chien-fu said the additional domestic demand that should have been fueled by lower fuel and housing prices never materialized and exports have remained weak because of the sluggish global economy. TIER Economic Forecasting Center Director Gordon Sun said growth in 2015 Q4 would likely fall short of 0.9%, leading to the downward revision for full-year growth to below 1%. If exports continue to plunge by double digits in the Q4, the full-year projection could be lowered again, Sun said. (Commercial Times, Nov. 6, 2015)

Taiwan’s Economy to Turn Around in Six Months: Ifo

The global economic climate has cooled considerably, according to the Ifo World Economic Survey. The survey, issued on Nov. 12, showed an Ifo Index of 89.6, down six points from the previous survey in August. Ifo Institute experts said Taiwan’s economy was hurt by lackluster capital expenditure and private consumption in the fourth quarter but felt it would begin turning around in six months. Wu Ming-huei, the director of the National Development Council’s Department of Economic Development, said the questionnaires for the latest Ifo survey were distributed in October when exports were contracting, the purchasing managers’ index was lower and consumer confidence was down, which influenced the results. Wu stressed, however, that the overall economic climate had not worsened, and she predicted confidence in the economy would soon return. (Economic Daily News, Nov. 13, 2015)

Market Watch

Unpaid Leave in Taiwan on the Rise

A total of 5,292 workers were on unpaid leave as of mid-November, four times as many as at the end of October and the highest number in 43 months, according to Ministry of Labor figures. The 45 companies with workers on unpaid leave were mainly electronics companies and manufacturers, but were not concentrated in any particular region in the country. The unpaid leave generally involved one or two unpaid days off a week, the statistics showed. (United Daily News, Nov. 17, 2015)

Taiwan’s 4G Per Capita Data Usage Highest in the World

Taiwan’s 4G Internet data usage per capita per month is the highest in the world, said Far EasTonechief sales and marketing office Maxwell Cheng on Nov. 16. He said 4G data usage per person in Taiwan is 10GB per month, far higher than the average of 4GB per month seen in market leader South Korea, the 2-3GB averaged in Europe and the United States, and the less than 1GB averaged in China. The figure was also about 2.5 times higher than the 4GB per month used by 3G subscribers in Taiwan, with some 4G subscribers in Taiwan using as much as 1,000GB in a month.

The number of 4G subscribers in Taiwan broke through the 10 million mark in October, a milestone achieved in only 17 months, faster than anywhere else in the world. (Commercial Times, Nov. 14, 2015)

Market Watch

Taiwan to Hold Presidential, Legislative Elections on Jan. 16

Taiwanese voters will be going to the polls on Jan. 16, 2016 to elect a new president and a new Legislature. There are three tickets vying for the presidency and vice presidency (listed in order of their candidate number): Eric Chu and Jennifer Wang, nominated by the Kuomintang; Tsai Ing-wen and Chen Chien-jen, nominated by the Democratic Progressive Party; and James Soong and Hsu Hsin-ying, nominated by the People First Party. The three parties all nominated vice presidential candidates who are not members of the respective parties. Wang and Chen are unaffiliated, while Hsu is a member of the Minkuotang. (Wikipedia,2015)

2016 Presidential Campaign Failing to Stir Passion

Taiwan’s public has long been disenchanted with the country’s general political environment and partisan wrangling. That, along with a big gap in the polls between the leading presidential candidates that has taken some of the suspense out of the race, has resulted in a rather “chilly” 2016 presidential election campaign. There has been a lack of focus because of the big difference in the polls, similar policy proposals across parties and ambiguity among the candidates on controversial issues, and voters seem to be less engaged in the campaign than in the past. (TVBS, Dec. 21, 2015)

Market Watch

Consumer Confidence in December Lowest in 20 Months

Taiwan’s consumer confidence index (CCI) fell for the eighth consecutive month in December to its lowest point since April 2014. The index fell 2.59 points in December from a month earlier to 81.61, according to the Research Center for Taiwan Economic Development at National Central University on Dec. 28. The center said Taiwan’s economy would not be worse next year than this year, but it did not expect to see a turnaround until Q3 2016 at the earliest.

Two constituents of the CCI – confidence in consumer prices and the labor market –improved in December because of the sustained low level of prices in Taiwan and the generally stable unemployment rate. But confidence in the domestic economy, stock market, personal finances and durable goods purchases all fell during the month, pulling the index lower. (Commercial Times, Dec. 29, 2015)

Case Study

Promotional Campaign for the Chimelong International Ocean Resort

BRIEF RECAP Participating Clients: Chimelong International Ocean Resort on Hengqin Island in Zhuhai and selected vendors

Campaign Period: Nov. 16, 2015 ~ Jan. 3, 2016

Campaign Objectives: To position the Chimelong International Ocean Resort as a world-class theme park and

generate interest in the resort among Taiwanese consumers to get them to want to go there

Campaign Strategy: Use integrated TV, newspaper, Internet and outdoor advertising to highlight how amazing

Chimelong International Ocean Resort is and promote it as a “must-visit” destination

Campaign Features Creative Concept

Build up the Chimelong International Ocean Resort brand, emphasize that a visit to the resort will leave children

feeling like they are the most fortunate children in the world

Media Exposure

TVC(30 seconds)

Print Media: Embedded special reports covering the distinctive features of Chimelong International Ocean Resort

Taipei Metro Posters/Ads: Placed on the BanNan Line (Blue Line), which transports the most office workers of any line

in the city

Internet: Ads placed on the Web portals and news sites with the highest traffic as well as social media platforms and

smartphone media with the highest stickiness.

Creative ProductNewspaper Ads

Creative ProductNewspaper Ads+ Advertorial

Creative Newspaper Ads+ Advertorial

Upaper Cross Page

Creative Supertaste Magazine CT Weekly Magazine

Creative Product Banner Design

Cut 1 Cut 2 Cut 3

Cut 1 Cut 2 Cut 3

Creative Yahoo news homepage banner

Creative Education Parenting Family Life style website homepage

CreativeTaipei MRT—Bannan Line Cabin Poster

Media News

Aviation Sector Ad Spending in Traditional Media from Jan. to Oct. 2015

Airlines’ Ad Spending, Jan.-Oct. 2015

50,488 50,033

9,662 7,842

4,356 3,501 2,902 2,333

-

10,000

20,000

30,000

40,000

50,000

60,000

• Sources: Nielsen Media Research, XPRN

• Unit: NT$1,000 (Note: Covers newspapers, magazines, radio, terrestrial TV, cable TV and outdoor media)

The aviation sector spent NT$131.12 million on advertising in traditional media in Taiwan in the first 10 months of 2015. EVA Airways had a 39% share of the total to lead the sector, followed by China Airlines at 38%.

Ad Spending Share by Media Type

• Sources: Nielsen Media Research, XPRN

• Unit: NT$1,000 (Note: Covers newspapers, magazines, radio, terrestrial TV, cable TV and outdoor media)

• Brands covered: EVA Airways, China Airlines, Cathay Pacific, AirAsia, Scoot, Tiger Air, TransAsia Airways and Jetstar

The aviation sector concentrated its ad spending on traditional media, investing the most in cable TV, newspaper and outdoor advertising.

Media Ad spending

Cable TV NT$36,221,000

Newspapers NT$35,853,000

Outdoor NT$23,698,000

Magazines NT$19,323,000

Radio NT$11,636,000

Terrestrial

TVNT$4,385,000

28%, Cable TV

27%, Newspapers

18%, Outdoor

15%, Magazines

9%, Radio

3%, Terrestrial TV

Ad Media Preferred by Each Brand

• Sources: Nielsen Media Research, XPRN

• Unit: NT$1,000 (Covers newspapers, magazines, radio, terrestrial TV, cable TV and outdoor media)

EVA Air, AirAsia, TransAsia Airways and Jetstar preferred advertising in newspapers; China Airlines & Cathay Pacific preferred TV commercials; Scoot preferred magazine advertising, and Tigerair relied mainly on radio & outdoor media. AirAsia and TransAsia Airways relied on cable TV commercials nearly as much as print ads.

20,359

5,519

19,734

3,356

1,209 1,747 2,124 1,275

-

5,000

10,000

15,000

20,000

25,000

Eva Air ChinaAirlines

CathayPacific

Air Asia Scoot Tigerair TransAsiaAirways

Jetstar

Terrestrial TV

Cable TV

Newspaper

Magazine

Radio

Outdoor

Media Ad Spending Share By Month in 2015 Jan-Oct.

• Sources: Nielsen Media Research, XPRN

• Unit: NT$1,000 (Covers newspapers, magazines, radio, terrestrial TV, cable TV and outdoor media)

• Brands covered: EVA Airways, China Airlines, Cathay Pacific, AirAsia, Scoot, Tiger Air, TransAsia Airways and Jetstar

April to June was the peak advertising period; 16-17% of the year’s ad spending came during each of those months, with a total of NT$65.75 million spent. Other peak months were October and January.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Amount 19,265 6,311 7,167 20,679 22,890 22,179 4,739 3,097 5,558 19,233

Percentage 15% 5% 5% 16% 17% 17% 4% 2% 4% 15%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

-

5,000

10,000

15,000

20,000

25,000

About Cheese

About Cheese

*Digital Marketing Company*Dedicated Internet marketing

division

*Insightful online media digital

marketing research

*Internet publicity tool

development

*Internet campaign planning

and execution

*Media Integration Company

*Precise marketing strategies

*Clear understanding of clients’

needs

*In-depth industry breakdowns

*Insight into consumer behavior

*On top of market trends

*Travel Advertising Company *Creative ad campaigns

*Ideas that meet clients’ needs

*Highly efficient

*Omnimedia ad production

capabilities

*High-quality creative standards

CHEESE ― The Travel AD Specialist

Thank You

If you are interested in what we can do

for you or have any ideas or

suggestions, please contact us.

Cheese Marketing Integration

Guangfu S. Rd., Lane 260, No. 24, 3th Fl.,

Taipei, Taiwan (105)

Tel: 02-2721-9664

Fax: 02-2741-6286