Vietnam Changes Strategy

Whilst countries like Indonesia and Malaysia are working to introduce visa free policies for Chinese tourists, Vietnam has implemented a new law which will see greater restrictions for the segment. Since 2004, Chinese tourists were allowed to enter Vietnam with entry and exit permits issued by the Chinese government, which would grant them a laissez-passer to travel within the country for 30 days. However, as of 1st January 2015, the 2004 regulation has been superseded by this new Immigration law that stipulates 20 different categories of visas. Chinese tourists will need to apply for a suitable type of visa in order to gain entry as well as pay a fee of US$45 to travel in Vietnam. This move comes in an attempt by the government to diversify tourism source markets. Following this, Vietnam has also rolled out a new marketing strategy that aims to boost domestic tourism within the country.

Myanmar Tourism Booms

Tourism arrivals to Myanmar have already exceeded the country’s Tourism Master Plan (2013 – 2020) goals to reach 2.81 million visitors by 2020, with a total of 3 million visitors in 2014. The increase in the number of low cost carriers and greater awareness of tourism offerings has given rise to this sudden surge. Over the next few years Myanmar will continue to invest US$486.6 million into 38 projects that will help improve the tourism industry further. Also in the pipeline is the new Hantharwady International Airport 80 km away from Yangon, that the government is building as part of its efforts to improve connectivity out of and within Myanmar. With growing interest from hotel developers, the country will need to establish policies to regulate development, particularly along its pristine coasts, in areas such as the Mergui Archipelago as well as Ngapali Beach. Infrastructure development, both within destinations as well as at a national level, remains a constraint for further growth.

National Geographic’s Unique Lodges of the World

National Geographic has launched their curated collection of independent hotels which reflect a commitment to sustainability, authenticity and excellence. The collection, branded ‘Unique Lodges of the World’, encompasses 24 properties across six continents including three properties in Australia and one each in Malaysia Borneo, Mongolia and Bhutan. With greater social awareness and demand for corporate social responsibility, this new branding opportunity may provide niche focused resorts with greater traction and brand awareness. With the growing influence of the Millennial traveller being more green-centric whilst seeking authentic and unique experiences, branded hotels previously targeting such a niche may see growth in competition, with this new collection raising brand presence of these independent properties.

Yotel in Jewel

Yotel will open its second 130-room property at Jewel Changi Airport by the end of 2018. Jewel is a new development by Changi Airport which will provide passengers with a souk like shopping experience within a garden atmosphere and will be seamlessly integrated with Terminal 1. At present, the 320-room Crowne Plaza linked to Terminal 3 is the only airport hotel within the immediate vicinity of Changi International Airport. The new introduction of Yotel will definitely provide a new dimension to the competitive landscape at the airport and provide Yotel with greater exposure, aiding its expansion plans into the region. Yotel, a brand initially conceived as an airport hotel, has identified Singapore as its first entry into the region.

International Visitors to India on the Rise

India welcomed 7.46 million international visitors in 2014, an increase of 7.1% compared to 6.97 million last year. In terms of tourism receipts, US$ 19.66 billion was generated last year – a 6.6% growth over 2013 (US$18.45 billion). In December alone, 8.77 lakh foreign tourists visited the country as compared to 8.22 lakh during the same month in 2013, an increase of nearly 7%. The steep rise in number of foreign travellers comes on the back of the tourist visa on arrival (TVoA) scheme enabled by electronic travel authorization (ETA). Last November, the government launched the scheme for visitors from 43 countries across nine major airports. The nation’s tourism is likely to continue on this growth trajectory, following the launch of a series of tourism-friendly policies by the new government.

Absolute Share Price Performance, as on 16 January 2015