What trends are you seeing in the needs of international visitors and how are you accommodating them?
The way travellers around the world think about luxury is changing. Things like quality time and rare experiences now define luxury travel more than luxurious spaces. Ecotourism, which aims to allow travellers to experience and learn about the natural environment, culture and history of a region, is now attracting attention. In this case, luxury tourism could be described as encountering nature that only exists there and experiencing food that can only be eaten there.
We believe that by offering these real experiences (unique to) each local area, we can meet the needs and trends for our luxury customers.
What are your growth plans in Japan?
We are trying out new initiatives such as operating a hotel near Kansai International Airport. (Surveys show that the) criteria for choosing an airport hotel were price, access and cleanliness, and airport hotels were mostly used only for sleeping. I want to create an airport hotel that can offer a fun stay as a hotel concept.
Also, we opened Risonare Osaka at Hyatt Regency Osaka in December 2022. This hotel is a new initiative for us as it is part of a “hotel-in-hotel” structure. When Hyatt Regency Osaka was built, it had a decent market size so 300 rooms were created to match that demand. However, due to the pandemic, market demand is changing. Tourists will become more numerous than business travellers. Osaka is oversupplied by accommodation and hotel competition is tough. Filling up 300 rooms became the issue, so we came up with the idea of two brands collaborating. While Hyatt Regency Osaka is strong in some markets, Risonare is strong in others, particularly among families with children. I wanted to try filling the entire 300 rooms by bringing together these two hotel brands.
How about your growth plans for overseas?
Our vision for the future is not only to operate in Japan, but also to become a globally competitive hotel management company. The Japanese are originally famous for their hospitality so I want to do something to change the fact that Japan cannot compete globally in the hospitality-focused industry of tourism. Now, we are targeting the US because it is the launching pad for the global hotel industry.
One of our ongoing plans is to open a Japanese-style hot spring inn (ryokan) within three to five years in the US. If we are recognised there, we will have more opportunities to expand in other regions. I believe the hot spring inn is a unique accommodation and has elements of a Japanese cultural theme park. There are about 1,200 hot spring spots in the US, such as (in) California and Colorado. As the number of foreign visitors to Japan from the US has increased in recent years, the level of understanding of (the) Japanese culture has also increased. Japanese-style hot spring inns in the US, therefore, are likely to be both desirable and successful.
Hoshino Resorts’ history goes back to 1914, when its first ryokan hot spring inn was established – so what is your secret to success?
In order to operate all Hoshino Resorts properties equally, the culture must be flat, and not the organisation itself. This is not an idea we came up with, but is based on American author Kenneth Blanchard’s theory of organisational management. This theory is the guiding principle for creating a flat culture and solving various onsite problems at Hoshino Resorts.
Our staff are always aware and discovering something new while serving customers, and without this awareness and discovery, it is difficult for hotels to function properly. Therefore, the most important element of management is that the employees think for themselves. Problems come up onsite and solutions should be decided immediately. Carrying out the decision-making process onsite, rather than at our headquarters in Tokyo, is our essence. Our job at the headquarters is to provide the right environment and invest in the system. It is important to create an organisation where each resort acts independently.
He joined Belmond in 2020 as divisional managing director for Asia-Pacific where he has since led the company’s Asian hotels through the pandemic, developing and implementing plans of ambition as well as playing an active role in multiple steering committees that have led to the rollout of strategic initiatives across the company.
Singapore tourism is expected to recover to pre-pandemic levels by 2024 on the back of a strong recovery trajectory in 2022 and continued growth momentum this year, said Singapore Tourism Board (STB) officials at this morning’s Year-in-Review conference.
Exceeding STB’s forecast of four to six million visitors, the city-state’s international visitor arrivals (IVA) hit 6.3 million in 2022 – about 33 per cent of 2019’s IVA – with key source markets Indonesia (1.1 million), India (686,000) and Malaysia (591,000) leading the way.
Tourism receipts are estimated to reach S$13.8 billion (US$10.4 billion) to S$14.3 billion, about 50 to 52 per cent of 2019’s takings with top markets, Indonesia, India and Australia contributing S$1.1 billion, S$704 million, and S$633 million respectively.
The average length of stay in Singapore was about 4.81 days (post-quarantine period), compared to 3.36 days for the same period in 2019.
Arrivals were boosted by a number of marquee events in 2022, such as the Formula 1 Singapore Airlines Singapore Grand Prix 2022 that drew a record attendance of 302,000, and Singapore Fintech Festival, which attracted a record turnout from over 115 countries.
In tandem with the stronger demand for leisure and business travel, Singapore’s hotel industry posted an AOR of 79.1 per cent from April to December 2022, compared to 87.3 per cent in the same period in 2019. ARR during this period increased by 17 per cent to S$260, while RevPAR went up by 6.2 per cent to S$206.
In 2022, Singapore’s position as a regional cruise hub also strengthened with more than 230 ship calls and a passenger throughput of 1.2 million, about two-thirds of pre-pandemic levels in 2019.
With increasing flight connectivity and capacity as well as China’s gradual reopening, STB expects the growth momentum to spill into 2023. IVA is expected to reach around 12 million to 14 million visitors, bringing in approximately S$18 billion to S$21 billion in tourism receipts – around two-thirds to three-quarters of 2019 levels.
STB chief executive Keith Tan said the IVA projections are impacted by China’s speed of recovery – “how fast they open and flights are restored”.
He expects to see Chinese arrivals returning to 30 to 60 per cent of 2019’s numbers by the end of 2023.
Moving into the new year, STB will continue to support the development of new and refreshed offerings, such as Bird Paradise @ Mandai Wildlife Reserve, and pump S$110 million into boosting business and leisure events over the next two years. The new year has kicked off strongly with some high-profile events, such as Art SG, South-east Asia’s largest art fair, and Sail GP, which made its Asian debut last week.
Destination marketing through the SingapoReimagine campaign will be intensified in all key markets while the SingapoReimagine Marketing Programme will help local tourism and lifestyle businesses promote Singapore.
To alleviate the manpower crunch, STB will continue to help the tourism sector ramp up hiring, support manpower needs and provide assistance for digital transformation industry-wide. As of September 2022, the total tourism workforce is around 65,000 – about 78 per cent of 2019 levels.
Summing up, Tan said: “To sustain our growth in 2023 and beyond, we will expand our partnerships, build up a rich year-round calendar of events, ramp up investment in new and refreshed products and experiences, and continue to support industry efforts to build the capabilities they need to meet consumer demands.”