Asia Pacific’s Best Business Hotel Brand: Shangri-La

Shangri-La has once again won the title of the “Best Business Brand in Asia Pacific”, as well as the “Best Business Hotel in the World” for the Shangri-La Singapore, for the 13th consecutive year. The brand also won several other awards at the 2014 Business Traveller Asia-Pacific 23rd Travel Awards event in Hong Kong. The hotel group owns and oversees over 85 properties (over 36,000 rooms) around the world. Locations in India, Sri Lanka, Myanmar, Qatar and many others are already in the pipeline of the Hong Kong based company. The opening of the Shangri-La London at The Shard has further solidified the brand’s position as a contender in the highly competitive global luxury market.

Latest Asia Pacific’s Airline Traffic Results

The Association of Asia Pacific Airlines (AAPA) has released the latest airline traffic outlook for the Asia Pacific region based on figures from the month of August 2014. The results show further increase in air passenger markets and demand for air freight services. It was reported that airlines in the Asia Pacific region airlines carried approximately 23 million international passengers in August and this was more than the same month last year. Over the last eight months in 2014, Asia Pacific airlines accumulated a 4.5% growth compared to 2013.  However, average load factor of international passengers have decline by 1.6% for the month with a 6.1% increase in available seat capacity. This is likely due to cruise travels gaining more popularity in the region as there has been a 5% growth in international tourists for Asia Pacific as well.

Better Connectivity to Myanmar for the Future

Spurred by growing regional and global tourism demand, the Myanmar government is working to improve the country’s connectivity to international feeder markets. Neighbouring countries China and India are already connected by land, though the adjoining border areas for all three countries are still remote and not well connected to other areas. Further efforts are expected within the aviation sector to increase the routes served within the country and from regional hubs to cities other than Yangon. Although no official outline of the 30-year National Transport Development Master Plan has been released, it is expected to outline steps towards developing the transport infrastructure to support further tourism growth.  Several international airlines have expressed interest in serving routes within Myanmar though infrastructure challenges remain in terms of the capacity and services of the regional airports.

Japan Is Malaysia’s Choice

In the first seven months of 2014 Japan has experienced an increase in tourism from ASEAN countries, in particular Malaysia with a 63% growth year-on-year. Factors such the easing of entry visa requirements for Malaysian nationals who hold a biometric passport, as well as increase in flights available between the two countries and a favourable currency exchange between Japanese Yen and Malaysian Ringgit. Looking among the ASEAN travellers to Japan, Thailand is still the top source market for the country, followed by Malaysia which has pushed Singapore to third place. Malaysians have been identified to be an important market as it was observed that they tend to spend on full-board packages staying up to six nights on average. With new attractions such as Universal Studio’s Harry Potter themed attraction also with direct flights to Nikko and Nagoya, Japan hope to capture more markets to its shores.

South Korea Gains Popularity among MICE Buyers

South Korea is gaining popularity as a MICE destination, particularly for international clients and events looking for a change from the traditional MICE markets of Singapore, Thailand and Hong Kong. Due to a growing popularity for leisure activities in the country, many companies are also looking at South Korea as a destination for corporate incentive travel. It is reported that MICE travel to South Korea is growing approximately between 3.4%. With increased connectivity to feeder markets such as Indonesia, which has seen tremendous increase in outbound travel, this segment is expected to grow.

LOLC Leisure Rebrands to Brown Hotels and Resorts

Local Sri Lankan hotel group LOLC Leisure will be rebranded to Brown Hotels and Resorts. The group plans to strengthen its current portfolio of 308 rooms in three hotels consisting of: Eden Resort & Spa and Dickwella Resort & Spa in the south coast and Green Paradise, Dambulla in north-east Sri Lanka. It is reported by the group that a 363-room, five-star hotel at Beruwala that is planned to be completed in 2016; a 172-room five-star property at Kosgoda to be finished in the first half of 2015; and a 71-room, four-star hotel in Passikudah aimed to open end of 2014. Brown Hotels and Resorts have also shown interest to start a property in the capital, Colombo and aims to be among the largest hotel operators in Sri Lanka.

Absolute Share Price Performance, as at 3 October 2014