Guangzhou leads strong China hotel development pipeline
China’s hotel construction pipeline continues to remain robust in 3Q2020 amid Covid-19 headwinds, despite trending slightly down from a peak in the previous quarter, according to analysts at Lodging Econometrics (LE).
In the latest China Construction Pipeline Trend Report, analysts at LE report that China’s total hotel construction pipeline remains robust at 3,409 projects (634,119 rooms), up one per cent by projects and rooms year-over-year. These project and room counts are, however, down slightly over peak 2Q2020 totals, which were the highest seen in China during this lodging real estate development cycle.
There are currently 2,208 projects (405,530 rooms) under construction in China, down year-over-year 13 per cent by projects and eight per cent by rooms. Like last quarter, projects scheduled to start construction in the next 12 months experienced another quarter of substantial year-over-year increases of 85 per cent by projects and 44 per cent by rooms, to stand at 746 projects (122,014 rooms).
These year-over-year highs in the next 12-month stage are attributed to a record number of pipeline projects within the upscale, upper midscale, and midscale chain scales. Projects in the early planning stage stand at 455 projects (106,575 rooms), up six per cent by projects and one per cent by rooms year-over-year. In 3Q2020, China opened 185 new hotels totalling 23,605 rooms.
Guangzhou leads China’s pipeline with 137 projects (26,615 rooms), followed by Chengdu with 131 projects (26,064 rooms). Next is Shanghai at 125 projects (23,296 rooms), then, Wuhan with 101 projects (13,899 rooms) and Xi’an with 95 projects (16,882 rooms).
Franchise companies topping China’s construction pipeline are Hilton Worldwide with record totals of 535 projects (107,848 rooms); InterContinental Hotels Group (IHG), also recording all-time high project and record counts with 424 projects (90,906 rooms); and Marriott International with 336 projects (90,333 rooms). Next is JinJiang Holdings with 250 projects (25,127 rooms) and AccorHotels with 201 projects (34,655 rooms).
Hilton Worldwide’s top brands are Hampton by Hilton, at an all-time high, with 325 projects (50,100 rooms). Hilton’s second-largest brand, also at an all-time high, is Hilton Garden Inn with 68 projects (15,653 rooms). IHG’s leading brand in China is Holiday Inn Express, at a record count, with 205 projects (34,785 rooms) and then Holiday Inn, with a record number, at 69 projects (17,184 rooms).
Marriott International’s top brands are Marriott Hotel & Resorts with 67 projects (20,150 rooms) and Fairfield Inn with 47 projects (7,219 rooms). Another noteworthy brand for Marriott is Four Points Hotel, which is at a peak for projects and rooms count in China with 37 projects (11,048 rooms). Leading brands for JinJiang Holdings are 7 Days Inn with 106 projects (8,341 rooms), followed by Vienna Hotel with 75 projects (7,394 rooms). AccorHotels’ leading brands are the Ibis brands with 79 projects (8,341 rooms), and Mercure Hotel with 57 projects (9,407 rooms).
According to research by LE’s market intelligence team, hotel construction projects in most major cities have resumed as the country continues to maintain control of Covid-19.
Malaysian healthcare providers take consultations online to reverse medical tourism slump
Malaysia’s medical travel sector is turning to tele-consultation and digital services to provide continuity in foreign patient care as travel restrictions suppress medical tourist arrivals and dent hospital revenue.
Malaysia Healthcare Travel Council (MHTC) CEO, Sherene Azli, anticipates a 70 per cent reduction in hospital receipts to between RM500 million (US$122.3 million) and RM600 million by this year-end – a shadow of 2019’s performance. Last year was a record-breaking year for Malaysia’s medical tourism sector, with some 1.3 million medical traveller arrivals on record, making the country the top destination for medical tourism in the world.
Nadiah Wan, CEO, Thomson Hospital Kota Damansara and group CEO of TMC Life Sciences, explained that medical tourism arrivals were reduced due to tight border controls and travel restrictions that have also translated into stricter government requirements that medical travellers have to abide by as well as complex logistics and safety measures that medical facilities must undertake.
Speaking on the Collaboration for an agile future in healthcare travel panel during the insighHT2020 virtual conference organised by MHTC, Nadiah added that the pandemic has also altered the profile of medical tourists to Malaysia. Prior to the pandemic, Thomson Hospital used to receive customers mainly from South-east Asia seeking fertility treatment, which is an elective procedure. Today, medical travellers are approaching the hospital for critical procedures such as brain or cardiovascular surgeries.
Fellow speaker, Ronald Koh, president/CEO, Penang Adventist Hospital, said the pandemic and travel crisis have put private hospitals in Penang, a top medical tourism destination in Malaysia, on “survival mode”.
To reverse the slide in foreign customers, Penang Adventist Hospital has invested in digital solutions to allow doctors to conduct tele-consultations with patients who are unable to travel to Penang for treatment, as well as to prescribe digitally, receive virtual payments and deliver medicines to the homes of foreign patients.
Stanley Lam, CEO of Mahkota Medical Centre in Melaka, noted a mindshift among doctors who have learnt to adapt and use online platforms for tele-consultations.
On its part, MHTC is helping to drive a rebound in the industry through a three-prong strategy: aggressive publicity and branding campaigns showcasing Malaysia’s excellence in healthcare while at the same time building trust and new partnerships; providing support and facilitating end-to-end infrastructure including the adoption of digitalisation; and thirdly, building Malaysia as a thought leader in medical tourism.
Building back better
What is the future of travel? At this very moment last year, my vision of the future was one of abundant travel opportunities, made possible by convenient air services, some of which at affordable price points, that allow anyone to travel anytime. More destinations are opening up for tourism, fresh hotels are springing up in exciting destinations, and the growing presence of specialised tour and activity suppliers that present destinations in new light also serve to inspire travel and encourage exploration of new places.
Who would have guessed that the travel landscape would change so drastically this year because of a single virus? I would never have imagined travel to become so inaccessible, that only business-critical trips may be permissible, that costly and invasive swab tests are compulsory for travellers to be cleared for take-off, and that one may need to jump through more hoops to secure a travel visa and government-issue entry approval.
Travel and tourism for one and all who can afford it – in terms of time and money – no longer exists.
While the absence of travellers is a relief for communities struggling with overtourism, it has also provided a sobering realisation that we cannot do without tourism, for it touches many aspects of our life in positive ways – as an employer, a consumption stimulator for other industries, a supporter of community development, and a contributor to conservation efforts.
Can we rise from the ashes as responsible and appreciative travellers who make every trip count for something? Or, as professionals in the travel and tourism trade, ensure our work leaves a legacy for the communities we touch?
In these early days of tourism recovery, the answer seems promising. Hospitality players are partnering small businesses and communities within and beyond the tourism space to rebuild demand together and help each other ride out the storm.
Tours and activity operators are arousing interest in community-based tourism – even if only as an answer to safe distancing needs of travellers today.
So, even as initial travel demand seems to be mostly driven by convenient resort locations or the best deal in town, and not so much for meaningful and sustainable purposes, travel and tourism suppliers can be the heroes we need to move us towards a virtuous rebound.
A consistent move towards sustainable and responsible travel needs to start with programming, by ensuring that featured activities and contractors support host destinations, communities and local conservation efforts in some form.
Travel and tourism can build back better and stronger, and it is up to us to make that happen.
Karen Yue is group editor of TTG Asia Media. She sets the editorial direction for the company’s stable of travel trade titles and platforms, and produces content for them as well.
IATA to bid goodbye to DG Alexandre de Juniac
International Air Transport Association’s (IATA) director general and CEO, Alexandre de Juniac, will step down from his role effective March 31, 2021.
In line to take over De Juniac’s role is Willie Walsh, former CEO of International Airlines Group. He was recommended by the IATA Board of Governors at the 76th IATA Annual General Meeting (AGM) on November 24 to become IATA’s eighth director general from April 1, 2021.
De Juniac commented: “I did not come to this decision lightly. It has been the privilege of a lifetime to serve the global air transport industry – what I call the business of freedom – as the head of IATA. Over the last years IATA has strategically increased its relevance as the voice of the global airline industry. This has been evident in the COVID-19 crisis. IATA has set the course to restore air connectivity amid the pandemic with systematic pre-departure testing. We are well into preparations to fulfil critical vaccine distribution needs.
“In parallel, we have restructured IATA to survive the crisis and be ready to support the industry recovery. We have a motivated team that is determined to get the job done. The building blocks for an industry recovery are in place, and now is the right time to hand over IATA’s leadership for the long process of recovery.”
He joined IATA in September 2016 from Air France-KLM, where he was chairman and CEO.
Carsten Spohr, chair of the IATA Board of Governors and CEO of Lufthansa, said: “Alexandre has led our industry in extraordinary times. Under his leadership, IATA has become a stronger and an even more relevant organisation.
“I am also pleased that we are able to present a very capable candidate to the 76th IATA AGM to succeed Alexandre in this important role. I am convinced that Willie will be a great director general for IATA.”
Macau rolls out e-learning programme for Indian agents
The Macao Government Tourism Office (MGTO) in India has kicked off the Macao Specialist Program for travel agents, allowing the destination bureau to maintain engagement with trade partners and provide them with useful product updates.
Each varied module in the online learning programme is designed to ensure that the agents are well equipped with accurate information to promote Macau as an ideal destination for Indian travellers, and to create interesting itineraries.
Upon completion and passing of each module, agents will be certified as a Macao Specialist.
TTG is getting a new home
TTG Asia Media is relocating its Singapore head office, effective November 30, 2020.
It will now be located at The Alpha, 10 Science Park Road, Singapore Science Park II, #03-11, Singapore 117684.
Main office line will remain unchanged, with auto attendant assistance to route calls to various departments.
Meanwhile, editorial communications can continue to be directed to ttgnewsdesk@ttgasia.com.
The Unlimited Collection by Oakwood debuts with three properties
Oakwood has launched The Unlimited Collection by Oakwood with a landmark signing that brings three properties into the new brand portfolio.
The new brand, which targets independent travellers, allows for a curation of independent properties that retain their unique positioning yet leverage Oakwood’s hospitality management expertise and distribution network. It will strengthen the company’s market potential through distinctive residential spaces that celebrate individualism.
The signings with 8M Real Estate will grant Oakwood management rights to three iconic heritage properties in Singapore’s key architectural conservation precincts, namely KeSa House, Ann Siang House and Wanderlust, with the first of these expected to open in 1Q2021.
“Oakwood is dedicated to continuous innovation and evolution with a guest-first approach. Recognising that travel decisions reflect the lifestyle and identity of our discerning owners and guests, we are excited to launch The Unlimited Collection by Oakwood and extend greater accessibility to partners on a journey towards the curation of diverse experiences. The debut of The Unlimited Collection by Oakwood alongside our inaugural partnership with 8M Real Estate symbolises the dawn of a new era in the serviced apartment industry as we celebrate individualism together,” said Dean Schreiber, interim CEO of Oakwood.
“This exciting new partnership with Oakwood allows us to leverage their expertise in hospitality management and brings a global distribution network to deliver flexible living residences for locals and travellers alike. The Unlimited Collection by Oakwood allows all three properties to retain their unique characteristics and identities which we have passionately designed and developed over the past few years.” said Ashish Manchharam, founder and CEO of 8M Real Estate.
SIA gets fresh financing
Singapore Airlines (SIA) has successfully raised S$500 million (US$372.4 million) via a private placement of new 10-year bonds, which will be used for general purposes including refinancing of existing borrowings.
The offer was launched at an offer size of S$300 million in response to an initial expression of interest, and was increased to S$500 million after strong appetite was apparent from a select group of private investors.
DBS Bank and United Overseas Bank acted as joint lead managers of the issue.
SIA CEO Goh Choon Phong said the support for the bond issue reflected “strong confidence that investors have in the ability of Singapore Airlines to navigate the near-term challenges”.
Since the start of the 2020/2021 financial year, including the November 24 issuance, SIA has raised approximately S$12.7 billion in additional liquidity. This includes S$8.8 billion from SIA’s successful rights issue, S$2 billion from secured financing, S$850 million via a recent convertible bond issue, and more than S$500 million through new committed lines of credit and a short-term unsecured loan.
For the period up to July 2021, SIA also retains the option to raise up to S$6.2 billion in additional mandatory convertible bonds that would provide further liquidity if necessary.
Tourism vouchers rolled out in Indonesia to encourage local spending
Eager to revive Indonesia’s ailing tourism industry, the Ministry of Tourism and Creative Economy has rolled out an incentive programme dubbed Big Promo to draw domestic travellers to tourist destinations in 12 locations across Indonesia, such as Belitung Island, Yogyakarta, Bali, Lombok, and Manado.
Under the programme, the government has readied 50,000 vouchers to help subsidise tourism expenditure, comprising a 225,000 rupiah (US$16) voucher which can be spent on staycations, tours and attractions; a meal voucher worth 100,000 rupiah; and a shopping voucher worth 75,000 rupiah.
Valid through year-end, the vouchers can be redeemed by domestic travellers when they purchase hot deals offered by participating hotels, restaurants, travel agencies and SMEs on the website bigpromo.co.id.
Christine Besinga, head of Big Promo organising committee, hopes that more industry players will join the Big Promo programme, and to lure travellers by crafting attractive deals.
While acknowledging that the programme will not fully make up for the losses sustained by businesses hard hit by the pandemic, she believes that it will at least help businesses “to survive until the end of this year”.
As of November 17, 1,208 subsidised packages are displayed on the website. Under the subsidy scheme, a superior room at the One Legian Hotel in Bali is going for 225,000 rupiah per night, as compared to its usual rate of 450,000 rupiah. Elsewhere, KCBJ Tours has slashed the price for its Nusa Penida One Day Trip from 930,000 rupiah to 705,000 rupiah, while its 2D1N Staycation package at The Alena Resort in Gianyar, Bali, is priced at 275,000 rupiah per night, a 45 per cent markdown.
Taufik Nurhidayat, coordinator of tourism marketing for regional area one at MoTCE, said that Big Promo was designed to get pandemic-fearful locals travelling again domestically, without neglecting health protocols.
Travel providers have welcomed the programme with open arms, as it is expected to boost consumption and cushion the pandemic’s blow on economic activities.
Krishnadi, chairman of Indonesia Hotel & Restaurant Association Jakarta chapter, said that the vouchers will encourage locals to travel, especially those facing pandemic fatigue and boredom.
With over 200 million people in Indonesia, a swifter recovery of the country’s tourism industry could happen on the back of intra-state travel, he added.
However, Bahriyansyah, owner of Bee Holiday and deputy secretary general of ASITA, bemoaned the programme’s belated launch, despite acknowledging that the incentives will be “quite helpful” to sector players.
According to him, nearly 1,000 packages have been submitted by ASITA members to the Big Promo committee since its November 16 launch – a “small” figure, considering the association has around 7,000 members across the country.
He attributed the low participation rate to the government’s sudden launch of the programme, and the lack of promotions surrounding it. As such, many ASITA members did not have sufficient time to meet the requirements, such as the need for an active tourism business certification (TDUP) or business identification number (NIB).
“Many members have yet to extend their TDUP or obtain an NIB because the majority of ASITA’s regional boards are inactive and their offices are also closed due to the pandemic,” Bahriyansyah said.
Jongki Adiyasa, executive director of Ina Leisure Tour and Travel and co-founder of Indonesia Inbound Tour Operator Association, opined that the vouchers would help hotels, restaurants, and retailers like souvenir shops, but it will provide little relief to tour operators.
Jongki explained that most tour operators do not sell individual components, but tour packages which include accommodation, transport, and meals. He cited the example of how the 225,000 rupiah voucher which can be spent on attractions will “mean nothing” to potential customers of tour operators, if the price of a tour package were, say, four million rupiah.
He, therefore, urged the government to give tour operators a meatier incentive that covers the whole package, not just an individual component like staycation or meal voucher.
The Sri Lanka government’s plans to amend the Tourism Act of 2005 which governs tourism in the country by amalgamating four state institutions involved in tourism into one agency has been met with strong opposition from industry players.
In his presentation of the 2021 budget in parliament last week, Sri Lanka prime minister Mahinda Rajapaksa, who is also the country’s finance minister, said the government planned to bring four existing institutions relating to tourism under the proposed Tourism Promotion Authority.
“The existence of separate institutions to fulfil various but interconnected roles has become a major impediment in implementing collective development activities and has led to the incurring of additional expenditure,” he explained, without providing further details.
The four institutions are the Sri Lanka Tourism Promotion Bureau and the Sri Lanka Tourism Development Authority (both of which are chaired by Kirmali Fernando), the Sri Lanka Convention Bureau, and the Sri Lanka Hotel School. Private tourism associations are represented on all the boards of these state institutions.
Sanath Ukwatta, president of the Hotels Association of Sri Lanka (THASL), said the proposed amendment to the Tourist Act has not been discussed with industry players. “Our contention is that any changes should only be made after a consultation with the industry,” he added.
Also in opposition of the proposal is the Sri Lanka Association of Inbound Tour Operators (SLAITO). In a statement, the association – which takes credit for generating more than 60 per cent of overseas visitor arrivals – said that its members were unanimous that there was no need to change the Act which has resulted in the betterment of the tourism industry.
It said the 2005 law came into effect with the objective of developing the tourism industry to meet the international standards and to promote the destination with an effective marketing strategy under a private-public partnership, with SLAITO, THASL and the Travel Agents Association of Sri Lanka identified as the three apex bodies.
Given that the government currently collects a hefty sum through the imposition of the Tourism Development Levy on industry players, SLAITO noted that the current Tourism Act eases the financial burden on the government when it comes to promotional expenditure as the levy collected is being used for destination marketing.
Other industry officials said there were fears that the tourism associations would get marginalised and risk losing representation on these bodies if all the state institutions were to be combined into a single entity.
Sri Lanka’s airport and seaports have been closed to tourists for several months now due to the pandemic. Discussions are underway to reopen the airport to tourism under a phased programme in January 2021.