HVS Monday Musings: Rebuilding the MICE Segment in India

By Mandeep S Lamba and Dipti Mohan
This article discusses some of the measures adopted by select global destinations to aid in the revival of the MICE (Meetings, Incentives, Conferences, and Exhibitions) segment in their countries.

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HPL Acquires 50% Stake of Croatian Avenue Ulaganga for EUR3.5 Million

Singapore-based hotel investment company, Hotel Properties Limited (“HPL”), has entered into a Sale and Purchase Agreement with Avenue Investments & Asset Management Limited for a 50% stake in Croatian tourism and real estate company, Avenue Ulaganja (“Ulaganja”). The acquisition was conducted by HPL’s subsidiary, HPL Croatia, and involves an aggregate consideration of EUR3.52 million (SGD5.6 million). Ulaganja had previously entered into project agreements with the Croatian government to develop tourism services in the Kupari region of the country. With this acquisition, both parties are expected to jointly undertake the development of the 99-year leasehold site, which features 13.12 hectares of land and 8.6 hectares of maritime domain. Currently, the proposed development involves a 150-key luxury hotel, spa facilities, apartments and villas on the beachfront, and a pier offering short boat rides from Dubrovnik centre. Canada-based Four Seasons Hotels & Resorts is expected to operate both the hotel and service residences in that area. HPL shared that this investment would enable the company to diversify its portfolio and expand into a fast-emerging tourist location in Europe.

New USD150 Million Cambodian National Stadium Completes Construction

Thong Kohn, Cambodia’s Minister of Tourism, has announced the completion of the USD150 million Chinese-funded national stadium in Phnom Penh, Cambodia, that began its construction in 2017. Named the Morodok Techo National Stadium, the venue will be part of a larger project, the Morodok Techo National Sports Complex, and will serve as the main venue for football and athletics. The stadium site covers 40 acres, while the entire complex will spread across about 210 acres. The 60,000-seat stadium sprawling across five-stories, is located along National Road 5 in the Northern suburb of Cambodia’s capital. The stadium is the second largest in the country behind the 70,000-seat Phnom Penh Olympic Stadium. The arena will be the hosting venue for the Southeast Asian (“SEA”) Games tournaments in May 2023. This represents the first time Cambodia stage the SEA Games. The infrastructure grant is part of China's trillion-dollar Belt and Road initiative to invest in infrastructure projects.

Megaworld Corporation Launches the 27th Megaworld Township

Philippines-based Megaworld Corporation (“Megaworld”), a real estate company involved in the development, leasing and marketing of real estate, has announced a PHP40 billion (USD797 million) development plan for their 27th Megaworld township, Paragua Coastown. The new 462-hectare township in Palawan is strategically located within a few minutes from the San Vicente Airport, which serves regular flights to Manila and Clark. Paragua Coastown will be an integrated resort featuring a boutique hotel district, health and wellness sanctuaries, a cultural centre, educational institutions, a mangrove reserve park, a shophouse district, as well as residential developments. Megaworld Chief Strategy Officer, Kevin Tan, shared that this new world-class development will showcase sustainable tourism and green living at its best. The initial development will start with an 83-hectare land in Kemdeng, and the project is expected to be completed in 10 to 15 years. Megaworld remains optimistic that the country’s tourism industry will regain its former glory after the pandemic.

Australia’s Northern Territory Launches AUD5 Million Domestic Tourism Campaign

Australia’s Northern Territory (“NT”) has launched an AUD5 million domestic tourism campaign to attract interstate travellers to the territory during the rainy season by offering discounts of up to AUD1,000 on tourism packages. The incentive will be exclusively available to double-jabbed tourists. They will be qualified for an AUD200 discount for every AUD1,000 spent on flights, accommodation, tours, attractions and/or vehicle hire. According to Department of Industry, Tourism and Trade deputy chief executive, Andrew Hopper, the campaign would further position the NT as one of the safest tourist destinations in Australia. The tourism campaign, which is also known as the Summer Sale, will run from 1 October 2021 to 31 March 2022. The announcement came days after Chief Minister, Michael Gunner, unveiled the NT government’s stage three reopening roadmap. The roadmap specifies that travel restrictions in NT will be eased when the overall vaccination rate in NT reaches 80% and workers in “high-risk” settings are fully vaccinated. Once that is achieved, more travellers can expect to enter NT, however, different rules will apply based on the travellers’ vaccination status.

Absolute Share Price Performance, as on 24 September 2021