The different Asia Pacific office markets held up well in 2004 with the best-performing markets enjoying rental increases of over 40 per cent while those which did not do as well remained largely stable. According to Knight Frank in its Global Property Report 2005, Australia's office market will finally begin to stabilize in 2005 after three years of falling demand and rising vacancies. DTZ Research considered Sydney and Brisbane to be the best markets for growth while Melbourne's office market is expected to bottom out in early 2006. This, DTZ said, would lead to strong investment demand for good quality office space and lead to moderate capital appreciation in the medium term. In Hong Kong, fuelled by the opening up of its border with China, Hong Kong leads the Asia Pacific in terms of office market prospects in 2005. Net effective rents in Central increased by 43 per cent in the fourth quarter of 2004. Grade A office rents are expected to rise by as much as 30 per cent in 2005. Other markets such as, China, Thailand and India continue to benefit from the global trend of outsourcing, information technology, call centres and back office services. These new businesses have stimulated the development of these coutnries' economies as well as the quality of the office market stock. As such, net rents rose in 2004 as demand for premium grade office space outstripped supply.

In the aftermath of the Tsunami disaster on Boxing Day 2004, property consultancy Knight Frank and Hilton Phuket Arcadia Resort have come up with a unique partnership that looks set to create a win-win situation for both parties. Under the agreement, Hilton staff will be used to help at properties managed by Knight Frank Phuket, helping out as maintenance staff, maid, gardeners and cleaners. Phuket's tourism industry is reeling from the aftermath of the tsunami which swept through parts of Asia, including Sri Lanka, India, Indonesia and the Maldives. According to the General Manager of Hilton Phuket, Mr. Peter Hourigan, the downturn in tourism numbers meant that he needed alternative initiatives to keep his 850 staff employed. With this new initiative, the hotel does not need to lay off its personnel, risking a shortcome in manpower when bookings upsurge. Even when the tourism industry recovers, the Hilton-Knight Frank relationship is unlikely to end there. There are plans to launch a Hilton Premium Card which will enable guests staying in outside villas to enjoy the hotel's facilities.

A new 'tourist city' is currently being planned for Bintan island, the popular Indonesian resort island just south of Singapore. Set to be built on the northern coast of the island, the new development within the Bintan Resorts Area, will host night clubs, upscale restaurants, shopping malls and boutique hotels. In addition, Island Leisure International, the master planner for Bintan Resorts, plans to build retirement villages and a new six-star beach resort have been drafted to entice visitors to stay longer than the current average of three days. As the master planner of the island, it leases and sells plots of land for development. Currently there are 10 resorts and villas, a range of spas and four golf courses on the island. The newly appointed CEO of Island Leisure, Mr. Yeo Khee Leng, formerly Singapore Tourism Board's chief, promised that the island would not lose its lush natural allure with the development of the 'tourist city'. In a bid to encourage a myriad of projects, Island Leisure will divide the site into smaller plots of between 0.5ha and 30ha as compared to allotting larger tracts of land in the past. Anotehr opportunity for investment on this island is the purchase of Bintan Lagoon Resort- a five-star landmark of Bintan.

Vacation Ownership (VO), popularly known as time-share, is a concept which is gradually cementing its foundation in the global tourism industry and is establishing its mark in Asia, which is offering a huge prospective market for time-share products. The industry is set to grow steadily in India, Malaysia, and Thailand. Time shares have attracted some of the best brands in the business such as the Four Seasons Hotels & Resorts, Disney Vacation Club, Ramada Hotels & Resorts, Marriott Vacation Club International, Hyatt Vacation Club, Hilton Grand Vacations Company, Club Mahindra etc. With more investments in vacation ownership properties and the anticipated entry of reputed hospitality brands timeshare activities will move to new heights. The Indian vacation ownership industry is currently estimated at 12,000 part and full-time jobs. An important thing to note is that very often employees are located in regions where employment opportunities are limited .The growing VO segment will add 10 to 15 percent additional job opportunities to the industry on an annual basis.

It was announced this week that Sydney came out tops amongst the other Australian cities to host the 2007 Asia Pacific Economic Cooperation (APEC) meeting. Prime Minister John Howard says while Brisbane put forward a very good proposal, Sydney won the bid because of its conference facilities, hotels and ability to accommodate the large number the international visitors. He also added that in terms of weight and influence, the meeting would be the most significant international meeting to have been hosted by Australia. Each year the APEC calendar typically includes a number of ministerial and officials' meetings that usually begin in February or March and conclude in the Week of the Leaders' Meeting. A number of other ministerial and official meetings taking place, as part of APEC AUSTRALIA 2007, would be held in venues around the country.