Greenland Hotel and Tourism Group (GHTG), the hotel and tourism arm of China-based Greenland Group, has picked Singapore as its springboard for regional expansion with the launch of its overseas operations centre (OOC) in the city-state earlier this month.
The centre will serve as the group’s Asia-Pacific hub for providing hotel advisory and management services to real estate entities in the hospitality segment.
“Singapore is known to be a regional hub with connectivity to the rest of the world that appeals to many multinational companies; it offers a complete range of financial and legal services and has sophisticated infrastructure that will certainly facilitate regional and international travel,” said William Lau, general manager of the OOC, on the reason for choosing to set up base in Singapore.
He cited the Republic’s close proximity to the company’s three priority markets of Indonesia, Thailand and Vietnam, as well as the presence of many major asset owners, developers and potential partners in Singapore as other key factors.
Lau said that as vaccination rates accelerate and restrictions ease, now is an “opportune time to pursue new hospitality and tourism opportunities in the region”.
He noted that pipeline data from Tophotelprojects showed that in South-east Asia alone, both 2021 and 2022 will see 121 new hotels open; with another 88 properties lined up for 2023, and 238 projects already on the books for 2024 and beyond.
This significant expected growth of hotel assets will lead to an oversupply, resulting in a highly competitive market and increased demand for hotel management services like GHTG, explained Lau.
He said that property owners and developers can not only tap into the group’s expertise in full life-cycle asset management, but also its “one core, two wings” developmental model, where its core hotel business is supported by its tourism and exhibition wings.
This will enable them to gear up for quicker recovery, and to optimise real estate yield and value by driving tourists and exhibition traffic to properties, he added.
The group, which operates more than 50 hotels in 60 cities across the world, aims to grow its regional footprint by launching its three signature brands – the luxury-focused Primus, upscale business brand Qube, and lifestyle brand Q-Box.
Lau said the company’s growth pipeline focuses on key gateway cities with an initial focus on its priority markets, and an aim to expand to 15 gateway cities by 2024. The group is also set to open two properties in the region come 1Q2022 – the Q-Box Hotel Johor Bahru in Malaysia and Qube Hotel Tasmania in Australia.
In addition, the group also specialises in advising on the integration of hotel assets into “Hotel+” destination concepts, and managing such micro-destinations, given its experience operating hotels within integrated complexes in various cities across China.
With the pandemic causing long-lasting shifts to travel patterns, Lau stressed that hospitality and tourism businesses will need to innovate and rethink their offerings, such as creating micro-leisure/holiday destinations.
“As demand for domestic travel increases, both for leisure and for work, demand for ‘Hotel+’ experiences will also intensify,” said Lau. “Businesses will need to pivot towards creating ‘Hotel+’ micro-destinations to cater to evolving demands.” He cited examples such as the integration of business events offerings or a leisure park with hotel assets.
Lau added that the group’s advisory services on managing such micro-destinations “will enable businesses to tap into the anticipated rebound of tourism, maximising the value of their land and emerging stronger from the pandemic”.
The World Travel & Tourism Council (WTTC) has launched a new report that highlights the pain points to restore international mobility, and recommendations to drive the recovery of the travel and tourism sector, while enhancing its resilience.
With the pandemic bringing international travel to an almost complete standstill due to border closures and severe travel restrictions, travel and tourism suffered more than any other sector over the past 18 months.
The sector’s contribution to global GDP fell from nearly US$9.2 trillion in 2019, to just US$4.7 trillion in 2020, representing a loss of almost US$4.5 trillion. Furthermore, some 62 million travel and tourism jobs were lost.
The report, in partnership with the Ministry of Tourism of Saudi Arabia, highlights WTTC’s latest economic projections which reveal the sector’s recovery is set to be slower than expected this year, largely linked to continued border closures and challenges linked to international mobility.
The sector’s contribution to GDP is expected to rise by a modest 30.7 per cent year-on-year in 2021, representing only US$1.4 trillion increase, and at the current rate of recovery, travel and tourism’s contribution to GDP could see a similar year-on-year rise of 31.7 per cent in 2022.
Meanwhile, the sector’s jobs are set to rise by a mere 0.7 per cent this year, representing only two million jobs, followed by 18 per cent increase next year.
The report reveals pain points that focus on the urgent challenge to restore international mobility, framed by the need to address the weaknesses of the sector shown during the pandemic by redesigning a more sustainable, inclusive, and resilient future.
It demonstrates how international border closures, uncertainty due to changing rules, the prohibitive cost of testing, and the lack of reciprocity and uneven vaccination rollout have hindered the recovery of the travel and tourism sector during the past 18 months.
Julia Simpson, president & CEO, WTTC, said: “The travel and tourism sector is key for many livelihoods which continue to be affected by the failure to harmonise and standardise Covid-19 regulations worldwide. There is no excuse for a patchwork of regulations; countries need to join forces and harmonise the rules. Many developing countries rely on international travel for their economy and have been left devastated.
“As it stands, only 34 per cent of the global population have been fully vaccinated, showing that there are still large vaccine rollout inequalities globally. A swift and equitable immunisation plan, alongside worldwide reciprocal recognition of all WHO approved vaccines, is needed to safely reopen international travel and promptly resume the economic activity.”
The report outlines recommendations to achieve a swift recovery of the travel and tourism sector, including a focus based on international coordination to reopen borders, fair testing conditions, digitalisation for travel facilitation, as well as sustainability and social impact at the core of the sector.