Is the China-led gaming boom at an end?

Driven by a long-running anti-graft campaign in China, Macau and other gambling destinations have registered a significant decrease in high rollers and gambling revenues. Macau, the most accessible market, further implemented smoking bans on casino floors and cracked down on junket operators and related entertainment businesses. While these initiatives are part of an effort to diversify Macau away from its core gaming activities operators are feeling more than a pinch, as gaming revenues declined for nine straight months by as much as 50%. The question is how far other gaming destinations are immune to the VIP demand squeeze from the mainland. Arguably Singapore is better diversified, however, the volume and number of high rollers from China is meaningful here as well. Rolling chip volume was down by 25% in Singapore in the last quarter of 2014. This reorientation to mass-market and premium-mass gaming means more room inventory is needed to sustain gaming revenues. At the same time it might challenge the rationale of some casino development projects currently under way across the region.

Visa-Free Entry to Indonesia for 30 New Countries

In order to boost tourism arrivals and increase expenditure to US$1billion in 2015, the Indonesian government has granted visa-free entry for 30 new countries with the exception of Australia, thus requiring Australian visitors to continue paying US$35 for their visas. Visitors from China, Japan, South Korea, United States and Russia are amongst some of the selected countries to benefit from this new legislation. Tensions arose between the two nations following the incarceration of two Australian nationals accused of drug trafficking in Bali. Currently, execution for both men has been postponed pending appeals; however Indonesia appears to remain adamant on their stand.  Australians make up approximately 11.3% of visitor arrivals to Indonesia in 2013. In the same year, they were the third largest market in terms of revenue (US$750.74mil) and length of stay at an average of 9.62 days in the country in comparison to the average 6.2 days of their Asian counterparts in 2013. For Bali alone arrivals from Australia constitute 26% of demand (2014), making Australia the largest feeder market for the island.

Pullman Gurgaon Central Park rebranded to a Le Meridien

Starwood Hotels & Resorts, an American hospitality group, has announced the opening of Le Meridien Gurgaon following the reflagging of an existing hotel. The property, which opened three years ago and was operating under the Pullman brand, offers 285 rooms including 22 suites, two restaurants, a lobby bar and lounge, a poolside lounge bar, more than 1,800 m2 of meeting space, a fitness centre, a spa and a salon. The hotel, owned by Oriental South Delhi Hotels Private Limited has undergone some refurbishment to support the brand change. A major satellite city of Delhi, Gurgaon has gained prominence as a key commercial and financial centre of the Delhi-NCR region.

Accor to manage Jaipur Exhibition and Convention Centre

Accor, Europe’s renowned hospitality company will operate the Jaipur Exhibition and Convention Centre (JECC) under a management contract. Jaipur is a key leisure location in India and is a part the Golden Triangle travel itinerary along with Delhi and Agra. Over the last few years, Jaipur has emerged as an important destination for MICE (Meetings, Incentives, Conventions and Exhibitions) in the country. It has also established itself as a premium wedding destination.  JECC, located in the industrial area of Sitapura, and spread across 42 acres, has been jointly developed by Dangayach Group and Derewala Group. The development features two exhibition halls with a combined column-free space spanning 20,000 m2 along with an open exhibition area measuring 10,000 m2. Additionally, JECC offers a convention centre with plenary seating for 1,200 delegates distributed across 20 meeting rooms covering 5,000 m2 of space, supported by pre-function areas, registration counters, interpretation booths, a lawn for hosting outdoor events, and a car parking with a capacity of 4,000 cars. JECC has commenced operations and a 241-room hotel, to be managed by Accor under their Novotel brand is currently under development, and is anticipated to open by 2016.

Three Sessions to Watch Out For at the Hotel Investment Conference – South Asia (HICSA) – 7 & 8 April, 2015

One of the major highlights at HICSA this year, the ‘Global CEO Panel’ will showcase prominent industry leaders at the helm of some of the most respectable global organizations, including Arne M Sorenson, President & CEO, Marriott International; Gerald Lawless, President & Group CEO, Jumeirah Group; Rakesh Sarna, Managing Director & CEO, Taj Group and Thomas P Heneghan, Chief Executive Officer, Equity International, share their thoughts and future vision.  ‘The Billion Dollar Roadmap: Savour, Spend or Splurge’ promises to be another exciting session that will see some of the most prominent names in the industry formulating and presenting their own strategic plans on how they would spend a billion US Dollars in the region’s hotel industry. Watch these industry experts discuss, debate, explore and challenge the how's and why's of where investments fetch the best returns and the risks associated with the same. Yet another session not to be missed is the ‘Judgment Day’, which will see the conventional hot topic at HICSA – ‘Management Contracts’, take an unusual twist, as three owners and three brand representatives face it off in a courtroom set-up with two renowned lawyers presenting cases from either side, making it an atypical yet thoroughly interesting forum.

Absolute Share Price Performance, as on 19 March 2015