TTG Asia
Asia/Singapore Friday, 19th December 2025
Page 802

Spain, South Korea revive disrupted tourism pact

0

Spain and South Korea signed a new memorandum of understanding (MoU) at a preparatory conference in Barcelona last week, paving the way for the resurrection of a joint tourism plan that was thwarted by the outbreak of Covid-19 at the start of 2020.

The ceremony was attended by South Korean president Moon Jae-in and the host country’s industry and tourism minister, Reyes Maroto.

A renewed tourism development pact between Spain and South Korea will rebuild both economies and shape a more resilient tourism future

Both expressed hopes to recuperate the growing tourism numbers registered between the two countries before the pandemic struck and to work together to make the sector more sustainable.

Maroto stressed that Spain was beginning “to see a horizon of hope” as it recovered from the worst of Covid-19, and had so far managed to fully vaccinate some 27 per cent of the population.

“(South) Koreans are welcome in Spain and we want to receive them very soon,” she said, pointing out that Spain is the country with the third biggest collection of attractions on the UNESCO World Heritage list.

“Now it is time for us to build the future together after Covid,” she added,

Not only would the accord help in rebuilding economies, “it will also take on the transformation of the tourism model to make it more resilient, sustainable, inclusive and digital,” she added.

Moon said that the reopening of tourism was important for the economies of both countries. “It is my wish that Spain and (South) Korea will lead with this collaboration to open up a sustainable tourism model.”

The original MoU was signed by Maroto and South Korea’s minister of culture and tourism, Park Yang-woo, in Seoul in October 2019.

A joint working group will now share data and work together in key areas such as tourism promotion, digital marketing, market intelligence and the development of intelligent and sustainable destinations.

Special emphasis will be put on the areas of gastronomy, cinema, medical and business tourism sectors, the Spanish government revealed.

South Korean arrivals to Spain soared from 43,000 at the start of the 2010s to 630,000 in 2019, behind only China (699,000) and Japan (686,000) in the Asian market.

While Spanish arrivals to South Korea have been increasing, figures only reached 30,000 in 2019.

Into the woods

0

Singapore reduces stay-home notice for travellers from higher-risk locations

0

77% of APAC travellers ready to take to the skies again

0

Australian domestic tourism projected to reach record high by 2025

0

Wyndham expands Pakistan portfolio with seven signings

0

IHG makes triple signing in Thailand

0

Green financing for hospitality sector thrives in Singapore despite travel downturn

0
  • More hotel groups, hotel developers securing green loans
  • Green loans on the rise; finance sector plays its part to support government and private sector’s sustainability agenda
  • Green financing encourages sustainable business practices, engagement with responsible travellers

The pandemic may have devastated Singapore’s travel and tourism industry but green financing for hotel properties has remained buoyant and experts expect even stronger investments ahead.

Major financiers and industry players TTG Asia spoke to indicated that sustainability efforts to green properties will likely accelerate post-pandemic and green financing seems poised on an upward trajectory too.

Ascott Residence Trust secured a S$50 million five-year green loan from DBS Bank to finance lyf one-north Singapore

The focus on sustainable financing in the hospitality sector has grown significantly over the years as travellers become more aware of the environmental and social impact they have on local ecosystems and communities, according to Lam Li Min, head of real estate and hospitality, sector solutions group, group wholesale banking, UOB.

Last year, Park Hotel Group secured its first green loan of S$237 million (US$176.1 million) under the UOB Real Estate Sustainable Finance Framework. Launched in 2019, it was the first-of-its-kind for the sector established by a Singapore bank. The framework sets out the eligibility criteria, including sustainability strategy, objectives, ratings and performance targets, for companies to meet when applying for green loans or sustainability-linked loans.

Tan: Green financing nudges hotel operators towards integrating sustainability into their businesses

Tan Shin Hui, executive director, Park Hotel Group said: “Sustainable financing for the hospitality sector is like a carrot on a stick for hotel developers and operators to incorporate sustainability in their business strategy and decisions. This development in financing encourages companies to consider environmental impact of their investments and new business initiatives. It also motivates hotel developers and operators to measure and evaluate the positive difference they are making on the environment.”

This month, Worldwide Hotels Group also inked its first green loan facility worth S$405 million for its new hotel and commercial development, 8 Club Street, with Maybank Singapore. The agreement with the Group is one of the largest bilateral green financing for a hospitality asset in Singapore to date.

Maybank Singapore has also dished out S$250 million in Islamic green financing to property investment chain, Royal Group back in March – said to be the world’s first for hospitality. The funds will go towards the upcoming Raffles Sentosa Resort & Spa Singapore and the existing Sofitel Singapore Sentosa Resort & Spa. This marks Royal Group’s first foray into sustainability finance, according to Gregory Seow, head of global banking, Maybank Singapore.

Seow: Pandemic has sharpened sustainability focus for hospitality stakeholders

“Within the hospitality sector, there is increasingly more focus given to green financing as the pandemic is a wake-up call for sustainable financing. We do see more clients embedding sustainability into their business models to show their stakeholders that they take ESG (Environmental, Social and Governance) targets seriously and will work towards the desirable outcomes they aim for,” Seow added.

Ascott Residence Trust (ART) will use its S$50 million five-year green loan from DBS Bank in January this year to finance its maiden development project and co-living property, lyf one-north Singapore.

Beh Siew Kim, CEO of ART Management and Ascott Business Trust Management, said: “Being the first hospitality trust in Singapore to secure a green loan reinforces ART’s commitment to do our part for the environment and the communities we operate in. In 2020, we increased the number of green properties in ART’s portfolio by about four times compared to 2019. To date, 21 properties in the ART portfolio have obtained green building ratings and certification.”

According to a 2018 UN World Tourism Organization report, hotels account for about one per cent of global greenhouse gas emissions as an industry – so it is crucial for hospitality businesses to embark on ways to reduce their carbon footprint.

Greening makes business sense
Apart from being able to secure green financing for their projects and combat climate change, integrating green practices into their properties will ultimately benefit the bottomline for hotel owners and operators as guests trend towards travelling sustainably and responsibly too.

Seow pointed out that both government and the private sector have also been advocating the sustainability agenda as a differentiator on the country, as well as on a company level.

From 2019 to 1H2020, the Monetary Authority of Singapore revealed that Singapore corporates have borrowed S$10.2 billion through green and sustainability-linked loans, and S$4.8 billion of green and sustainability bonds were issued from Singapore. There is an increased traction for real estate owners and developers to opt for green loans.

As at mid-2020, the green share of total loan and bond transactions in Singapore remains modest at less than five per cent, reflecting the significant opportunity for growth ahead. Seow added: “The finance sector will continue to play our part in promoting sustainable financing for the hospitality sector.”

Thai cabinet approves further reopening for international arrivals this July

0

Thailand’s popular tourist islands – Koh Samui, Koh Phangan and Koh Tao – will once again beckon international tourists from July 15, a decision that the Thai cabinet green-lighted today.

The move is expected to bring Thailand’s beleaguered tourism industry closer to recovery, joining an earlier decision to reopen Phuket to tourists from July 1.

Koh Samui will reopen to international tourists from July 15

Cabinet spokesperson Anucha Burapachaisri said Koh Samui, Koh Phangan and Koh Tao in Surat Thani province are loved for their beaches, dining establishments and Full Moon parties.

On the same day, transport minister Saksayam Chidchob delivered a progress report on Thai aviation capability, in response to prime minister Prayut Chan-o-cha’s commitment last week to reopen the country in the next 120 days.

The Thai Transport Ministry has asked the Civil Aviation Authority of Thailand to allocate flight schedules for Phuket’s airport. Some 134 flights have been scheduled per day initially for summer, and approximately 320 for winter.

Should the reopening take off well, the number of international flights to Thailand is expected to climb to 13,354 in July – from 5,698 flights in May 2021. Passenger numbers are expected to increase from 79,226 in May 2021 to 146,448 in July. Tourist arrivals are expected to grow 10-fold in July 2021 from a year ago.

To ensure the health and safety of locals and fellow travellers, people from low-and medium-risk countries will need to serve a 14-day quarantine upon entry into Thailand while those from elsewhere must serve a 21-day quarantine in a designated facility. The government is deliberating on the definition of low-, medium- and high-risk countries.

High hopes among Japan’s luxury travel sector for 2022 rebound

0

With Japan’s borders closed to most nations, the country’s high-end inbound tourism is not expected to bounce back until 2022 at the earliest, predicts local luxury travel players.

Yuko Inamasu, representative of high-end cultural experience provider Toki, says interest in Japan remains high among Asia countries, especially Hong Kong. If travel bubbles are established, Toki’s focus will be the Asia market for the rest of 2021 and the rest of the world from spring 2022.

Apart from Tokyo and Mount Fuji, first-time visitors to Japan may also be more keen to exploring the regions

Hiro Miyatake, co-founder and COO of Bear Luxe Corporation, a network connecting Japanese luxury travel suppliers and global travel designers, says 2022 is the “concrete bet” for when the country’s luxury travel rebound will occur, although “the majority of clients are eager to travel to Japan as soon as borders open”.

Luxury travellers who visit post-pandemic are likely to want longer stays in fewer destinations as well as more authentic experiences with a stronger focus on responsible travel.

Miyake predicts visitors will have a more “slow and deliberate” approach and a desire for “meaningful and mindful travel”. There is also likely to be increased demand for social, sustainable and ecological travel, according to Inamasu.

Another priority for the high-end visitor is community engagement, making Japan well-placed to meet their needs. The uptick in unique accommodations, from traditional ryokans to boutique hotels and luxury villas, has seen many lodgings promote their community, including craftspeople, artisans, chefs and farmers.

Japanese destinations that showcase their unique local characteristics can expect to fare well, said Miyake, noting the growing interest among luxury travellers for “gastronomic experiences, not just dining in a special restaurant, but also in learning about farm-to-table (initiatives).”

First-time visitors are expected to continue to prioritise Tokyo, Kyoto, Osaka, Hiroshima and Mount Fuji, but they may also be more interested than before in exploring the regions due to greater ease of social distancing and the slower pace away from crowds.

Among repeaters, Toki is seeing growing demand for rural areas as well as Niseko in Hokkaido, and Okinawa. Bear Luxe is also enjoying interest in Niseko as well as Nikko (Tochigi Prefecture), Setouchi (Okayama Prefecture) and Kyoto, which Miyatake attributes to the investment and development of Japanese luxury hotels in these areas, which was triggered by Tokyo’s hosting of the Olympics.