Malaysia Airlines (MAS) and Japan Airlines (JAL) are set to launch a delayed joint business partnership on July 25, which will see the two carriers co-operate commercially on flights between Malaysia and Japan.
The airlines said in a joint press release that the partnership will “further enhance convenience between Japan and Malaysia and allow customers to benefit from more flight choices”.
Malaysia Airlines, Japan Airlines joint business partnership finally takes off following Covid-19 delay
With MAS resuming flights to Japan starting this month, MAS and JAL combined will offer four-weekly services between Kuala Lumpur and Tokyo Narita in July and August.
MAS group CEO, Izham Ismail, said the joint business was delayed by a few months due to travel restrictions between both countries amid Covid-19. “We look forward to the bilateral discussions between the governments of Malaysia and Japan to establish a travel bubble between the two countries, which will ease restrictions for cross-border travel,” he added.
JAL president, Yuji Akasaka, said: “While our expanded relationship is being launched during unprecedented times, it has allowed both Japan Airlines and Malaysia Airlines to ensure the highest standards of safety and hygiene are in place from the onset for our mutual customers’ peace of mind. And with hospitality in mind, we are confident that customers will delight in the in-flight experience and enjoy convenient flight schedules and seamless services.”
Despite a second wave of Covid-19 infections in Beijing, China’s aviation recovery is expected to surpass that of other Asia-Pacific markets through August, according to forecasts by Ascend by Cirium.
Speaking at Cirium’s recent virtual seminar on Post Coronavirus Recovery for Aviation in China and the Asia-Pacific Region, Joanna Lu, head of consultancy-Asia, Ascend by Cirium, noted that seven-day seat capacity in the mainland is expected to recover to pre-Covid-19 levels, and possibly even see a slightly positive year-on-year growth by end-August.
The return of more Chinese aircraft to the skies heralds recovery in domestic air travel markets
Meanwhile, most other markets in the region are expected to still register year-on-year decline in seven-day seat capacity by end-August, even as capacity continues to improve in July and August.
Overall, seven-day seat capacity across Asia-Pacific is expected to see a lower year-on-year decline of 12 per cent come August versus 43 per cent in June.
China’s recovery trajectory is markedly different from of Hong Kong, which is expected to see year-on-year change in seven-day seat capacity recover to approximately -20 per cent by end-August, below that of the overall region.
Lu cautioned, however, that signs of recovery have to be considered alongside continuing uncertainty and the fact that airlines tend to make short-term capacity reductions in response to shifts in the industry.
Additionally, markets where July is traditionally a peak month for domestic travel – Indonesia, Taiwan and Thailand – could see greater positive year-on-year growth in terms of domestic seat capacity versus China this month, reckoned Lu.
Nevertheless, an encouraging sign supporting predictions of recovery is the increasing number of Chinese aircraft in service over the past few months, which signals that China’s domestic market is on the mend, shared Lu.
Despite a slight drop in daily aircraft in service after concerns of a second wave in Beijing emerged mid-June, service levels on June 19 recovered to 80 per cent (2,471) of the 3,071 aircraft in service on January 3.
Meanwhile, recovery of daily in-service fleet across the rest of Asia-Pacific trails behind China’s, reaching 1,238 on June 19, or just 33 per cent of January 3 fleet numbers.
In China, aircraft utilisation has been lagging behind that of fleet capacity. The number of hours flown by China’s single- and twin-aisle planes in mid-June came in at around 6.5 and six per day respectively – still 22 per cent and 44 per cent down from that at the start of the year.
Across the rest of the region, utilisation trends are closer to that of fleet capacity trends. Single- and twin-aisle aircraft in the rest of the region flew about 4.5 and eight hours respectively per day, after utilisation bottomed out in end-April, as did fleet capacity. Interestingly, the latter is slightly higher than that of mainland China.
While the mainland domestic travel market is on track for recovery, its international travel market has been struggling since February. As a result, overall air traffic has been down 58 per cent year-on-year between January and April.
Concurrent air traffic trends for Asia-Pacific nations varied depending on the timing border controls were enacted.
Significantly, markets greatly dependent on inbound and international travel and that had no domestic travel market to tap on, such as Hong Kong and Singapore, were badly hit. Cut off from the mainland and the rest of the world, Hong Kong’s air traffic fell by 73.4 per cent in April over the start of the year, while Singapore faced a 48.4 per cent decline.
Moving forward, bilateral agreements to set up travel bubbles and air bridges could offer international aviation markets some reasons to be optimistic, reckoned Lu.
For instance, China is in talks with South Korea and Singapore to put in place travel bubbles for essential corporate travel.
With this in mind, Cirium predicted that departure seat capacity of flights from China to South Korea could recover to 800,000, nearly 80 per cent of that in January 2020.
At the same time, capacity from China to Singapore could recover to just over 200,000, approximately half that of January 2020 levels.
Other Asian nations in dialogue for similar travel agreements include Japan with Taiwan, Vietnam, Thailand, Australia and New Zealand, and between Australia and New Zealand (of a Trans-Tasman travel bubble).
Should markets recognise public health standards of other destinations and provide information openly, Lu predicted that more of such agreements will be sealed in the future, which could lead to a much-needed revival of international air travel.
Countries forming such agreements are likely to be nearby or ideologically compatible.
– Translated by Angela Teo; this article was first published in TTG China
• Singapore attractions fine-tuning operations to suit these pandemic times
• Places of interest double down on hygiene standards to win back visitors
• Tourism operators pivot to focus on domestic market
A visitor to the National Museum of Singapore checks in via SafeEntry as part of the country’s contact tracing efforts (Photo credit: Brian Teo for National Museum of Singapore)
As tourist attractions in Singapore start to reopen their doors, they are reshaping their operations in line with shifting health and safety expectations post-pandemic.
At most attractions, capacity is capped at 25 per cent to manage visitor volume. Other safety mandates include safe distancing measures, temperature checks, and SafeEntry system for contact tracing. Many tourist spots have also adopted SG Clean sanitation standards, or enhanced cleaning and disinfection of frequent touchpoints in common areas.
In addition, many attractions are now encouraging online ticket purchases and e-payment methods to minimise physical contact.
At the reopened National Museum of Singapore (NMS), shared multimedia content, guided tours and programmes are temporarily unavailable. Instead, visitors can access exhibition captions and multimedia content in the four official languages on their personal devices, shared museum director Chung May Khuen.
For now, the museum has also removed headphones, audio guides and reusable translation text guides, and closed off all interactive exhibitions, to minimise touch.
Meanwhile, other attractions in Singapore, whose nature of operations seem tailored for safe distancing, has only had to make minor tweaks to their operations.
Case in point: Virtual Room Singapore, a multi-player VR arcade, which reopened on July 4. “Our experience has always been very safe and socially distanced so there won’t really be any differences to how people experience our attraction,” said its director Rebecca Assice.
“Our players each have their own 3m by 3m dedicated room, so they have no physical interaction with anyone else. They join and interact with only their friends in the virtual world, where they can see, hear and collaborate together.”
For Flight Experience Singapore, a flight simulator attraction which reopened on July 9, while the core experience remains unchanged, there will be new crowd control measures in place to suit these pandemic times, according to Alwin Yong, a flight simulator instructor.
He elaborated: “In the past, we could accommodate a bigger group of family or friends in the cockpit to watch their loved ones take control of the Boeing 737. Now, with the new safe distancing measures in place, the maximum capacity in the simulator has been reduced to three, excluding our instructor.
“The (additional members) of the group will have to remain outside the flight deck at the lounge area where they can enjoy a snack and a cup of coffee or tea, while enjoying the live feed on TV. In fact, the experience is more exclusive now as other groups of customers will not be admitted to the lounge area until their allocated timeslot.”
The attraction will also hold off hosting large school, corporate and team bonding events until further notice, Yong added.
More stringent safety protocols
Apart from the aforementioned hygiene protocols that have become de rigueur for every tourist attraction by now, some have gone the extra mile to stay sterile.
For the reopened Singapore Cable Car – part of the hilltop destination Faber Peak which also houses F&B outlets Arbora and Dusk Restaurant & Bar – it has adopted additional safe distancing measures, shared Buhdy Bok, managing director of One Faber Group.
“The interior of the cabin is sanitised after every ride and there will be no sharing of cabins among different groups of guests. Social distancing and capacity limits could contribute to a more exclusive, serene experience for guests… Our guests will enjoy not only more spacious surroundings at Faber Peak, but also their own private cable car cabins,” he added.
Some of its staff members have also been trained as Safe Management Officers to monitor the on-site implementation of the safety measures, and conduct regular inspections.
With social distancing rules in place, visitors to Singapore Cable Car will get their own private cabins
At Flight Experience Singapore, a 15-minute buffer between customers is enforced to allow for thorough cleaning and disinfecting of frequent touchpoints in the simulators before and after each experience, shared Yong.
In the Boeing 737 simulator, the communication headsets are wiped and disinfected before and after each use. In addition, disposable nonwoven covers are fitted over the leatherette earcups for each customer. A HEPA filter is also present in the flight deck to constantly purify the air to reduce airborne transmission risk.
As well, the facial sponge cushion on the VR headsets have been replaced with a washable non-porous silicone gel cushion, wiped and disinfected before and after each use. Disposable eye masks are also provided for each customer to wear under the VR headset.
Similarly, customers at Virtual Room Singapore are required to wear a soft disposable ninja mask to avoid direct contact with the headset, shared Assice. They also have to put on their own equipment, instead of being assisted by game masters.
The pivot to localism
With borders closed to most foreigners, attractions in Singapore are shifting strategies to make the most of what’s shaping up to be a majorly domestic tourism season.
Buhdy said they have pivoted their plans and campaigns for this year to target locals who have not taken the cable car in years, including families on day outings and couples planning romantic dinners with their Cable Car Sky Dining.
He elaborated: “We are planning a series of exciting local promotions for our attractions and working with partners to organise a series of events including yoga, mental wellness and art jamming within the beautiful natural surroundings of Faber Peak.”
Flight Experience Singapore, which traditionally has been heavily reliant on tourism, found the need to pivot as tourist footfall started to dwindle rapidly with the onset of Covid-19.
“We turned to online marketing to promote our experiences to the local market using targeted Facebook and Google ads. The campaign was a success – it more than made up for the significant increase in cost of online marketing and allowed us to connect with a large base of local consumers that we typically had not reached out to,” said Yong.
Flight Experience Singapore’s VR simulator area at their new Funan Mall outlet, which they opened in April to capture the local footfall
While most companies are downsizing their operations in the current economic climate, Yong shared that they are expanding with their new Virtual Reality flight simulators.
Instead of adding them to their existing location at the Singapore Flyer alongside their Boeing 737 flight simulator, the 12-year-old company opted to site them at their second outlet, which they set up in Funan Mall this April to capture the higher proportion of local traffic there.
Said Yong: “The decision was made to locate the new VR Experience at Funan Mall as we fit into their theme of experiential shops with our unique blend of retail and high-tech experiences, and we hope our commitment to cater to local consumers would bear fruit and forge a more resilient business model that is less dependent on tourist arrivals.”
Correction: In the original post, we made a mistake by describing Faber Peak as an entertainment complex. It is not, and is a hilltop tourist destination instead.
As Indonesia gradually eases lockdown restrictions, hotel occupancy rates across the country, including Jakarta, have started to pick up, after the coronavirus plummeted industry rates to a record low.
Parador Hotels and Resorts COO, Johannes Hutauruk, said that his properties have seen a spike in demand, from the lowest occupancy rate of 18 per cent during the pandemic to the current 31 per cent.
Santika Indonesia Hotels & Resorts has seen a rise in occupancy at its properties like Hotel Santika Premiere Slipi Jakarta (above)
Of Parador’s 10 properties, five are located in Gading Serpong, Tangerang. Some 95 per cent of guests to their Tangerang properties come from the neighbouring capital of Jakarta, which has relaxed restriction for business sectors.
“In April and May, the main purposes of our visitors were to seek safety and to self-isolate. But from mid-June to July, we have seen demand for business events,” Johannes said.
However, he added, properties in other areas like Malang in East Java, Bali, and Magelang and Semarang in Central Java, still face challenges in bouncing back.
East Java, for example, has overtaken Jakarta to become Indonesia’s coronavirus epicentre, with the highest record of confirmed cases and deaths. In Bali, meanwhile, business has yet to pick up because the island will only open its doors to domestic travellers from July 31.
As such, Santika Indonesia Hotels & Resorts’ properties in Bali remain closed to date, according to its assistant manager of marketing communications, Prita Gero.
However, at least 80 properties in many other regions have reopened, including Yogyakarta, Semarang, Belitung, Makassar and Palu, said Prita. Though hotel occupancy fluctuates, there is an upward trend. In Ambon, Santika’s property at one point even enjoyed 60 per cent of occupancy.
In Jakarta, Santika’s properties have seen occupancy rates climb from seven or eight per cent to nearly 30 per cent, thanks to Jakarta’s relaxed restrictions. With ministries resuming operation, many of Santika’s guests come from government institutions, according to Prita.
Other hotels across the country are also reporting a similar surge in demand. Artotel Group COO, Eduard Rudolf Pangkarego, said that occupancy rates for the group’s properties in Jakarta have climbed to around 30 to 40 per cent.
Tauzia Hotels has also seen an increase in occupancy at their properties, particularly in Jakarta, Central Java and East Kalimantan, according to its spokesperson, Nadia Tika.
Both Eduard and Nadia attributed the rebound to health and safety measures that Artotel and Tauzia had implemented to restore customer confidence.
Meanwhile, the success of the recently held Santika Online Travel Fair, which offered special discount packages, has led Santika Hotels and Resorts to plan a similar event in August to boost occupancy, Prita said.
On the other hand, Parador’s Johannes intends to skip price lures and will rely on intense online marketing efforts instead. “While monitoring the market and our competitors, we will try to use prices (stipulated in) our initial 2020 business plan,” he said.
Contactless check-ins, empty minibars, and digital menus are among the safety and hygiene measures to be rolled out at resorts across the Maldives, when the island nation reopens to travellers on July 15.
According to government data, 42 resorts will reopen by end-July, another 24 in August, 32 in September, 46 in October, and the rest after that.
Contactless check-in and dining, as well as 48-hour vacancies between bookings among safety measures adopted by Taj Exotica Resort & Spa, Maldives as it gears up for its July 15 reopening
Industry officials said they expect only a trickle of visitors during the initial reopening days, as most source markets in Europe have yet to resume outbound travel; while China and India, the Maldives’ top two source markets, are still battling the virus crisis.
Abdulla Ghiyas, former president of the Maldives Association of Travel Agents and Tour Operators, expected leisure tourists to only start coming in from August or September.
“The July opening will help authorities to test the effectiveness of the health and safety protocols. There are many expatriate workers who will also make use of the July 15 opening and availability of flights to return to their home countries,” he said. SriLankan Airlines, Emirates and Qatar are among the airlines that would resume operations this week.
From July 15, guests at Taj Exotica Resort & Spa, Maldives can expect contactless check-in, as well as F&B ordering using QR codes and e-payment solutions, according to its general manager, Samrat Datta.
Room allocations will be made only after they have been unoccupied for 48 hours, to allow for cleaning, disinfecting and sanitisation, he told TTG Asia. All resort associates will don personal protective equipment, while seating arrangements in restaurants and other common areas have been reconfigured to meet social distancing guidelines.
Similarly, when LUX* South Ari Atoll Resort & Villas reopens on August 1, all rooms will be left vacant for at least 24 hours between guests, to allow for deep cleaning and disinfection.
Hussain Afeef, the company’s regional director of training, development and quality assurance, said that minibars will remain empty, with a wide selection of items available upon request.
Wet wipes and sanitiser bottles will be placed in each guestroom, alongside pedal bins to allow for safe disposal of face masks and other protective equipment. Additionally, a medical team, including a doctor and a trained Covid-19 officer, will be on call 24/7 at the resort.
As of July 11, the Maldivian health authorities reported 2,664 Covid-19 cases, with 2,268 recoveries and 13 deaths.
Pan Pacific Hotels Group (PPHG) has launched an all-new brand app, Pan Pacific DISCOVERY.
Available now for iOS and Android users, the app grants users to a myriad of exclusive offerings such as special member privileges, unique local experiences in all PPHG hotels in 30 destinations and F&B discounts of up to 25 per cent in all PPHG operated outlets through a digital membership card incorporated into the app.
Bridging consumer touchpoints, the app is developed to deliver personalised experiences in the face of a rapidly evolving travelscape that gravitates towards the digital space.
Designed to meet the needs from leisure to frequent business travellers, the app allows users to search for, book and modify their stay at any of PPHG’s hotels or resorts around the world with an intuitive user interface.
App rewards are also specifically categorised, recognising the wide demographics of potential users. From year-round deals and limited offers, to promotions targeting families and honeymoon perks, prospective guests can definitely find something to craft a unique stay with PPHG.
Pan Pacific DISCOVERY members are able to check their membership status and redeem rewards on the go, including special member rates, in-room benefits, complimentary upgrades and more, enabling a rewarding stay experience
In enhancing members’ travels, the app also offers curated local experiences ranging from gastronomic adventures to relaxing spa sessions, presenting a destination’s best offers in one place.
Download Pan Pacific Discoveryhere or scan the QR code below. The app is also available on App Store or Google Play.
INDONESIA
A distressed global travel and tourism landscape has so far failed to disrupt new hotel openings planned for Indonesia this year, although hotel developers in the country have adopted a wait-and-see stance for new projects.
Ferry Salanto, senior associate director of Colliers International Indonesia, told TTG Asia that no hotel projects have been put on hold since the outbreak struck early this year, and Aloft Seminyak has opened as planned in Bali.
Aloft Bali Seminyak, Indonesia
Demonstrating tenacity, Artotel Group’s COO Eduard Rudolf Pangkerego revealed that “all projects will stick to plan”, even as most of Artotel’s partners were consolidating internally to ride out the Covid-19 pandemic.
That said, Eduard acknowledged that delays in construction due to restricted movements and activities as well as closure of businesses as part of health and safety measures will impact project work. Out of six to eight projects this year, Artotel Group hopes to be able to complete at least four by the end of 2020.
Similarly, Santika Indonesia Hotels & Resorts continues to maintain a target of 10 hotel signings and three to five openings this year, with another eight hotels that are slated for operations in 2021 and 2022.
Christy Megawati, business development manager with Horwath HTL, reasoned that ongoing hotel projects are able to continue because financing was secured before the Covid-19 crisis. Developments that are seeking financing now may need to be reassessed.
But with Indonesia’s “strong fundamentals of tourism”, established by a “heavy domestic component” along with a weakened Rupiah that makes the destination attractive to foreigners looking to stretch their dollar, investors will likely find Indonesian hotel projects attractive still, she opined.
What the country has in her favour, according to Armand Steinmeyer, director of business development and investment, Tauzia Hotels, is a hotel sector that is very responsive to market changes. He believes that Indonesia’s continued efforts to welcome foreign investment will pay dividends over time.
“The key message for most investors is that the current crisis has a short- to medium-term impact on business, and real estate is inherently a long-term business,” he remarked. – Tiara Maharani
JAPAN
Japan is seeing strong growth in hotel development at press time, thanks to stable demand from domestic travellers and a continued uptick in international arrivals. Inbound tourism is a core component of the government’s long-term economic growth and regional revitalisation plans, and this brings confidence to the market.
In 2019, there was strong appetite from domestic and overseas investors to increase their hotel footprint. According to financial services firm JLL Japan, hotel operators nationwide expanded the number of chains while real estate companies and developers increased development due to attractive yield targets.
“The availability of strong financing in Japan, at almost zero interest, has firmly supported hotel development activities,” said company spokesperson Megumi Terakado.
Most recent developments are limited-service hotels held under a long-term lease agreement with the operator, thereby reducing risk. These hotels are particularly attractive to small and mid-size developers due to “easier feasibility of cash flow, the rarity of cohesive land in Japan to develop full-service hotels, and the size of investment required,” she explained.
Rapid hotel development is seen in Tokyo, Osaka and Kyoto, where hotel occupancy is 30 to 40 per cent higher than overall Japan’s at 20 per cent, according to JLL.
Meanwhile, rural areas in Japan have been experiencing a boom in resort, boutique and lifestyle hotel developments. These new properties dangle unique experiences to lure travellers.
However, a 2019 report by Mizuho Research Institute warned that price competition is intensifying in the boutique hotel category, where supply is starting to outstrip demand. – Kathryn Wortley
MALAYSIA
The Covid-19 pandemic has sent a chill through Malaysia’s hotels, which will likely see average occupancy rate plunging to around 25.4 per cent for 2020, according to the Malaysian Association of Hotels.
The Conrad Kuala Lumpur is scheduled to open in 4Q2021
This has presented a worrying situation for hotel owners and developers, with Previndran Singhe, managing director and CEO of Zerin Properties, predicting that those who are unable to sustain their business “will close or sell (off) their properties”.
Previndran opined that stabalisation in the hotel sector might only return a year after the pandemic ends.
At press time, most of Malaysia’s new hotel projects will only come online in 2021. Two hotel brands will debut in Malaysia next year – Conrad Kuala Lumpur with 544 keys and 8 Conlay Kempinski Hotel Kuala Lumpur with 260 rooms and 300 suites are both scheduled to open in 4Q2021.
Four Points by Sheraton Desaru is scheduled to open in February 2021 with 311 keys; Courtyard by Marriott will debut in Penang next July with 199 keys; and Fairfield by Marriott will open its second property in Malaysia early 2021 in Kuala Lumpur with 188 rooms.
Brendan M Wong, director of sales – Malaysia at D-EDGE Hospitality Solutions, said: “It is heartening to see more international brands entering the Malaysian market. Big brands bring with them an international (network) of customers who may not be familiar with Malaysia as a destination.”
Casting his eyes towards the future, Malaysian Association of Hotel Owners executive director, Shaharuddin M Saaid, said demand from the domestic leisure segment could pick up in 1Q2021 but refrained from providing a time frame as to when hotels would return to pre-Covid-19 occupancy levels.
He said: “It would depend on how quickly our major markets recover from the outbreak, when travel restrictions are lifted, and how soon foreign airlines resume their services to Malaysia and domestic airlines rebuild and expand their overseas network.” – S Puvaneswary
PHILIPPINES
Over the last several years, the Philippines had a healthy dose of new hotel developments – branded and homegrown alike – on the back of a growing economy, rising foreign arrivals and huge domestic market of 70 million Filipinos.
“But the Covid-19 fallout will hamper the completion of 6,590 keys (between) 2020 and 2023”, said Tim Hallett, consultant at Philippine property development consultancy NAI RCL.
An artist’s impression of the Park Inn by Radisson Clark
Hallett said in a webinar that “development and project pipeline is officially on hold, with most developers, large and small, furloughing projects until the future has more clarity”.
It remains to be seen whether international brands that have plans to open from this year onwards will continue to do so. According to Colliers International Philippines, these brands include Okura, Movenpick, Mandarin Oriental; Okada Manila, Hilton Clark, among others, are looking to add rooms.
It is also a wait-and-see how successful homegrown brands like Seda and those owned by Filinvest, Rockwell, 8990 Holdings, Eton and Vista Land will spread across metro Manila.
Pre-Covid-19, developers in metro Manila were weaning off saturated CBDs in favour of the fringes and peripheries, near the international airport and Manila Bay MICE area, as well as further north to Ortigas, Pasig, and the untapped Quezon City area.
Outside the metro, groups like Marriott, Hilton and Park Inn By Radisson are expanding in Clark, which has her own international airport and gateway to Pampanga, Zambales, Baguio, Sagada and other tourist and business destinations.
C9 Hotelworks’ managing director, Bill Barnett observed that hotel developers are lured to beach-type locations topped by Cebu, Boracay and Bohol. Aside from Manila, the trio will return to popularity among the country’s top source markets, China and South Korea, when tourism returns. – Rosa Ocampo
SINGAPORE
Singapore’s hotel industry entered 2020 with strong promise, with all sectors posting positive growth following several years of “subdued performance”, shared Giuliano Esposito, senior vice president, strategic advisory & asset management Asia, JLL.
The economy segment grew the most by 4.1 per cent in 2019, followed by luxury at 3.2 per cent, midscale at 3.1 per cent and upscale at 0.6 per cent. This cross-industry growth came as Singapore welcomed more than 1,300 new hotel rooms last year, 60 per cent of which was concentrated in Sentosa.
An artist’s impression of The Clan Hotel, Singapore’s grand premier room
Esposito said: “Prior to Covid-19, we were extremely positive about the growth prospects of the Singapore hotel sector. In terms of hotel supply, we are (now) forecasting limited growth in hotel rooms for 2021 and 2022, which would have allowed the sector to register sustained growth in RevPAR.”
There will now be limited openings in the city-state, with the new additions including Dusit Thani Laguna Singapore, which will open in July, and The Clan Hotel, a Far East Hospitality property that has had its 2Q2020 opening pushed back to November this year.
Esposito remains positive about 2021, stating that more developments will emerge in the upscale and midscale sectors, as well as in the Greater Southern Waterfront and Sentosa redevelopment areas.
The sector is taking measures towards post-pandemic recovery, with JLL working with the owners and operators of nine hotels in Singapore that it currently asset-manages.
“Ultimately, developments will slow due to the fact that the construction industry has come to a standstill. Developers and owners in Singapore are generally well capitalised and have good relationships with banks, so (projects) are likely to progress, just at a slower pace than expected. As the current situation is unprecedented, we are working with owners and operators to start devising different scenarios of recovery, which may involve a complete re-think of target markets,” he shared.
“We still expect Singapore to continue to attract capital into the sector as it has proven to be able to rebound, based on its solid fundamentals. The city is considered a safe haven and we believe that safe haven destinations will likely benefit from the current situation.” – Pamela Chow
THAILAND
Over the past year, many luxury hospitality brands have made or planned their debut in Thailand. In 2019, Thailand welcomed South-east Asia’s first Waldorf Astoria, as well as the country’s first Capella and Rosewood properties.
Bangkok saw further expansions on a slew of mixed-use developments and integrated resorts including ICONSIAM, Mahanakhon Bangkok, the openings of Samyan Mitrtown & Sindhorn Village, and continued construction of One Bangkok (opening 2022).
Sindhorn Midtown Hotel Bangkok, Thailand
The year 2019 also witnessed the flagship Dusit Thani hotel being torn down to make way for mixed-use project Dusit Central Park (opening 2024).
Pre-Covid-19, JLL data showed Bangkok had a total future supply of 11,420 keys opening between 2020 and 2022 – around 29 per cent in the mid-scale segment, 56 per cent in the upscale segment, and 14.8 per cent in the luxury segment; 5,627 of those (49.2 per cent) were scheduled to open in 2020.
“Thailand on paper has a robust pipeline going into late-2020, but the impact of Covid-19 has seen a failure to launch by new hotels all over the country in both Bangkok and resort markets,” said Bill Barnett, managing director of C9 Hotelworks.
“In 1Q2020 hotels set to soft-open or fully-open made quick decisions to push back on paper at least to 3Q and 4Q. We’d expect this situation to domino and push some scheduled later in 2020 to 2021,” he stated.
While a few hotels such as Villa de Phranakorn and Sindhorn Midtown went ahead with their openings in February and March, respectively, the onset of the pandemic led many hotels in Thailand to shut their doors until May or even June.
Luxury hotels scheduled to open mid-year have been pushed out to 3Q2020 or later; they include Sindhorn Kempinski, Capella Bangkok and Banyan Tree Krabi.
Mahanakorn Orient Express, scheduled to open by end-2020, has been postponed indefinitely.
Commenting on Phuket’s hotel developments, Barnett said the popular resort destination has 24 new hotels and 5,735 keys in the pipeline, and the crisis is hurting mostly hotels in the planning cycle.
“Has the pipeline stopped? Absolutely not, but each and every developer is now rationalising and understanding they need a scale of guests to open. That’s the big question,” said Barnett.
“Projects that are now paused (are the ones) that we see are still in design or pre-development (phase); the ones under construction for the most part are going ahead. If projects are stopping now, it might be related to pre-Covid-19 issues, are under-financed, etc,” he added.
A C9 Hotelworks report released in May 2020 highlighted five new hotels with 1,627 keys in the pipeline for small resort town Hua Hin.
“Noteworthy (for Hua Hin) is a growing long-stay segment that is pushing into the villa rental segment. By location and catchment of key demand generators – wellness and retirement, (Hua Hin’s) markets are poised to grow,” said Barnett. – Anne Somanas
VIETNAM
As one of the few destinations that escaped the full brunt of the Covid-19 pandemic while benefitting from growing travellers’ interest, Vietnam’s hotel landscape has been able to remain strong as major players continue to pump up their presence in the destination.
The island of Phu Quoc has seen substantial investment in recent years as its popularity grows. And it is showing no signs of slowing with a series of hotels slated to open.
The 305-room Mövenpick Resort Waverly Phu Quoc and adjacent Mövenpick Residences Phu Quoc, which comes with 329 apartment-style residences and 79 pool villas, were the latest additions in April.
Anantara Quy Nhon Villas, Vietnam
InterContinental Hotels Group’s Regent brand is slated to establish a presence on the island later this year.
Jeff Redl, managing director of Diethelm Travel Vietnam, noted a rise in boutique properties in Hanoi city centre. Redl said there has been a particular focus on four-star properties, which were “missing” in the destination.
He added: “These newly opened properties have paid extra attention to design, which is more in line with the country’ history and culture compared to other properties. Demand was on the rise, especially from European markets. They are travellers who usually love to experience local heritage and look for an authentic atmosphere.”
Coastal development is also on the rise in both established and emerging destinations.
Linh Le, principal and co-founder of Luxperia, said development in emerging destinations is being driven by the local market.
Redl noted the Central Vietnamese coastal city of Quy Nhon is another area where interest for resorts development has recently boomed. Anantara opened a property there last year. Zannier Hotels will open in December and Fusion will follow in 2021. – Marissa Carruthers
Wyndham Hotels & Resorts will make its property debut in Nepal this August and in Bhutan come March 2021, as part of its continued expansion across the Indian subcontinent.
Ramada by Wyndham Valley Thimpu, Bhutan, will offer 41 spacious rooms, including many with panoramic views of the magnificent Himalayas. Tucked in the Thimpu valley by the free-flowing Raidāk River, its location will provide easy access to special events at the Tasichho Dzong, the giant statue of Buddha Dordenma, and the sacred Memorial Chorten site.
Wyndham grows itsfootprint across the Indian subcontinent, with planned properties in Nepal and Bhutan, following the opening of the Hawthorn Suites by Wyndham Dwarka (above)
Ramada Encore by Wyndham Kathmandu Thamel, Nepal, will be situated in the Thamel district of Kathmandu. The hotel will offer 90 guestrooms with a range of amenities to make for a comfortable stay and a rooftop promising a scenic view of the city.
The announcements came on the back of the company’s latest opening in the region, the Hawthorn Suites by Wyndham Dwarka – the brand’s debut in India.
Later this month, Wyndham will welcome the 45-key Ramada by Wyndham Mussoorie Mall Road at a hill station in the Dehradun District of the Indian state of Uttarakhand. Referred to as the Queen of the Hills, Mussoorie is popular with leisure and business travellers.
Nikhil Sharma, area director, Eurasia, Wyndham Hotels & Resorts said: “Over the last few years, Bhutan and Nepal have seen a steady increase in tourism, making them ideal destinations for us to expand into. What’s more, they perfectly complement the opportunity and uptick of the mid-scale market in India, which we’ve strengthened today with the introduction of our Hawthorn Suites by Wyndham brand.
“As the Indian subcontinent continues making waves in the hospitality industry, Wyndham remains laser focused on tapping into its key markets and fulfilling our mission of making hotel travel possible for all.”
Wyndham is currently one of the largest international hotel companies in India. Besides Hawthorn Suites by Wyndham Dwarka, the company has opened two other properties in the country since January 2020: Ramada by Wyndham Aligarh GT Road in January and Ramada Plaza by Wyndham Pune Hinejwadi in March.
Cathay Pacific Boeing 777-300 at the gate in Hong Kong International Airport (Chek Lap Kok Airport) in Hong Kong, China.
The Cathay Pacific Group has released its 2019 sustainable development report highlighting its efforts in moving towards greener aviation, and its community engagement initiatives.
These endeavours focus on climate change, the efficient use of resources, waste management, and supporting people and community.
Cathay Pacific pledges to halve its single-use plastic packaging by end-2022
The Hong Kong airline said that it has set a target to reduce its single-use plastic footprint by 50 per cent by the end of 2022, removing nearly 200 million pieces of single-use plastic from its operations annually.
The carrier has also introduced new efficiency initiatives, added six new, more fuel-efficient Airbus A350s to its fleet, and scaled up climate change risk and mitigation planning.
In addition, Cathay also committed to the continued support of communities through its Cathay ChangeMakers initiative, which aims to recognise citizens who have made positive contributions to society; and its I Can Fly programme, which recruits Hong Kong students who show a passion for aviation.
Cathay Pacific CEO, Augustus Tang, said: “At the time of preparing this report, a public health emergency has rocked the global economy. It feels more important than ever to foster positivity, to protect our people, to strengthen our communities and to confront the major challenges we face.
“We are very determined to play our part in this hugely important undertaking; one which requires us to be financially successful but in a socially and environmentally responsible manner. Our commitment to developing sustainably with transparency and accountability is undiminished.”
Raffles Bali, Indonesia
Located in Jimbaran Bay, the hilltop Raffles Bali has soft opened, offering vistas of the Indian Ocean and its own secluded beach. All 32 pool villas on the property features an outdoor terrace and private pool, indoor and outdoor showers, yoga mats and beach accessories, and a soaking tub. F&B venues include the brand’s iconic Writers Bar; Rumari restaurant, which serves up Balinese cuisine; Loloan Beach Bar and Grill, a seafood resturant; as well as The Secret Cave and the Purnama Honeymoon Bale, both for intimate dining experiences. Also on show is a library and spa.
Raffles Wellbeing Butlers are also on hand to arrange bespoke cultural experiences, from temple dance ceremonies to traditional cooking classes. Raffles Bali will be the first Raffles to launch the brand’s new wellbeing programme, Emotional Wellbeing by Raffles.
Far East Village Hotel Ariake, Japan
Far East Hospitality has opened its Far East Village Hotel Ariake in Japan. Previously known as Village Hotel Ariake Tokyo, the 306-key property is the first hotel under the Village brand to expand its presence outside of Singapore. Located in Koto City, the eastern part of Tokyo, Far East Village Hotel Ariake targets the domestic business community who will be attending conferences and exhibitions at Tokyo Big Sight – one of Japan’s premier exhibition arenas and convention centre. The hotel is also located a short walk from Ariake Tennis Park and the Ariake Arena.
Mercure Ambassador Seoul Hongdae, South Korea
Come August, Accor Ambassador Korea, in partnership with Seohan Tourism Development, will open its third Mercure-branded hotel in South Korea. The Mercure Ambassador Seoul Hongdae will feature 270 guestrooms, an all-day-dining restaurant, a lobby bar, fitness centre and laundromat. For corporate meetings and events, a business corner and meeting facilities are available; while the outdoor courtyard garden offers the perfect venue for private parties and cocktails.
The Ritz-Carlton, Nanjing, China
Overlooking Xuanwu Lake and Purple Mountain, The Ritz-Carlton, Nanjing towers 62 stories above the city’s CBD, on the uppermost floors of the upscale Deji Plaza. The hotel features 295 rooms, including 32 suites with kitchen and dining areas. Available are five F&B outlets, including Cantonese restaurant Dai Yuet Heen, all-day dining outlet Lavandula, and rooftop bar-restaurant Flair. Also on-site are a spa, a 24-hour fitness centre and yoga studio, and an indoor swimming pool. Meeting planners can avail more than 2,200m2 of event space, including The Ritz-Carlton Ballroom with an outdoor terrace, The Plaza Ballroom, and seven multi-functional meeting rooms.
Pan Pacific DISCOVERY members are able to check their membership status and redeem rewards on the go, including special member rates, in-room benefits, complimentary upgrades and more, enabling a rewarding stay experience
