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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 5 December 2008
Thailand’s Tourism Industry May Be Hit Harder Than SARS Or Tsunami
Strikes At Maldivian Resorts End As Quick As They Started
Cambodian Tourism Industry Affected By Thai Crisis
Hilton Otaru Bought By Singapore-Based Park Hotel Group
Hotel Performance In Metro Manila Suffering A Decline
HVS, BISU And BHI Host 5th China Hotel Investment Summit in April 2009 : FOCUS ON CHINA – ASIA’S POWERHOUSE
Absolute Share Price Performance, As At 5 December 2008
Thailand’s Tourism Industry May Be Hit Harder Than SARS Or Tsunami Return to Headlines
Thailand’s tourism industry may suffer greater damage from the closure of the two airports in Bangkok in October 2008 compared to the severe acute respiratory syndrome (SARS) outbreak between 2002 and 2003 or the 2004 tsunami disaster. The closure of the airports had hindered the access of long-haul travellers who transit through Bangkok to other provinces while Asian visitors who are cautious of the security situation may avoid direct Asian flights to Phuket, Koh Samui and Chiang Mai. According to JPMorgan Securities (Thailand), the political demonstrations are expected to directly impact service-related industries such as hotels, restaurants and exporters of perishable products or electronics which rely on air freight, and indirectly impact the banking and retail sectors.
Strikes At Maldivian Resorts End As Quick As They Started Return to Headlines
Employees at some island resorts in the Maldives, including Sri Lanka’s Aitken Spence Group’s Meedhuparu Island resort and the One and Only resort, had gone on strike, demanding the management implement the new Employment Act. The new act which was in place since mid-October 2008 includes limiting the working week to 48 hours, maximum eight-hour shift a day, and holiday and overtime payments. However, local and foreign owners of island resorts were reluctant to comply with the law which requires them to double the number of employees and incur an additional US$200,000 per annum on staff welfare. According to sources, the series of strikes that hit the Maldivian resorts had ended following presidential intervention and a peaceful resolution.
Cambodian Tourism Industry Affected By Thai Crisis Return to Headlines
According to the Cambodian tourism minister, Thon Khong, the tourism industry of Cambodia is expected to suffer around US$100 million in losses if the political situation in Thailand does not clear up by the first quarter of 2009. There are approximately 1,500 tourists in Cambodia arriving through Bangkok daily, accounting for 30% of total daily arrivals. Each of these tourists is forecast to spend an average of US$770 daily. Tourist arrivals to Cambodia have declined by almost 25% since the global financial crisis emerged.
Hilton Otaru Bought By Singapore-Based Park Hotel Group Return to Headlines
The 296-room Hilton Otaru, located in Japan’s Hokkaido Prefecture, has been purchased by Park Hotel Group from Ishin Hotels Group. The hotel, which is currently operated under a franchise agreement with Hilton International, is set to be rebranded as Grand Park Otaru. The acquisition of Hilton Otaru is Park Hotel Group’s first in Japan and this follows its recent acquisition of the 338-room Grand Castle Hotel Xian, which will be rebranded as Grand Park Xian in China. Otaru, a city and port in northwest Sapporo, is a popular resort destination featuring marine attractions, historic buildings and cultural attractions.
Hotel Performance In Metro Manila Suffering A Decline Return to Headlines
According to the Department of Tourism (DOT) Research and Statistics Division, the average occupancy of hotels in Metro Manila recorded 70.24% in the first nine months of 2008, reflecting a 3.48-percentage-point decline from the same period in 2007. The hotels, which are classified under deluxe, first class, standard and economy categories, recorded an average length of stay of 2.41 nights over these nine months. This represented a slight decline from 2.45 nights for the same period in 2007. The average occupancy of deluxe hotels was recorded at 70.86% while first class hotels registered 69.47%. During the same period, standard hotels and economy hotels recorded 71.08% and 59.91%, respectively.
HVS, BISU And BHI Host 5th China Hotel Investment Summit in April 2009 : FOCUS ON CHINA – ASIA’S POWERHOUSE Return to Headlines
As the largest and most established hotel investment summit held in mainland China, the upcoming 5th annual China Hotel Investment Summit (CHIS) 2009 promises an insightful experience for participants. The Summit will be held at the Grand Hyatt Shanghai from 22 to 24 April 2009.

“China provides the long term growth market for many domestic, regional and global firms. The current global economic uncertainties have presented both challenges and opportunities. Keeping abreast with the latest events and market trends, and how these changes could shape your businesses going forward, is of primary importance. Networking, and sharing of best practices, will help us better prepared to navigate through challenging situations and realizing new opportunities”, says David Ling, Managing Director of HVS Asia Pacific.

Investments in China’s hotel and travel-related industries are among the highest in the world. This is driven by phenomenal growth in the country’s travel and tourism sectors. Over the past five years, domestic visitor arrivals grew 85% to 16.1 billion visitors by 2007; the international arrivals increased 43% reaching 132 million visitors, and gross tourism revenue reaching 1,080 billion yuan. This has fuelled rising demand in related industries including hotel and serviced residential lodging, air and land transportation, construction, professional services, tourism, retail, and so forth. While growth in the near-term could be moderated, the long-term outlook is promising, considering the country’s economic fundamentals and growing affluence.

Professor Dai Bin, Vice President of China Tourism Academy and President of Beijing Hospitality Institute, added that “the determination of the Chinese government in ensuring the continued growth in the economy is reflected in the 4 trillion yuan (approximately US$570 billion) stimulus package announced on 9 November 2008. The fund will finance a wide range of projects, including the country’s infrastructure, which could incite consumer spending and bolster the economy especially in tourism market and hotel investment”.

To network and explore new ideas and opportunities in the vast market of 1.3 billion people, please visit: chinahotelsummit.com for registration, exhibit and sponsorship information.

For other information and queries, please contact:

Adeline Phua
HVS Singapore
Tel: +65 62934415 Ext 17
Fax: +65 62935426
Email: CHIS@chinahotelsummit.com

Absolute Share Price Performance, as at 5 December 2008
Closing Share Price as at 5 December 2008 November 28 2008 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.20 4.10 2%
General Property Group 0.83 0.94 -12%
Mirvac Group 1.22 1.37 -11%
Ocean Capital Limited 0.35 0.35
Thakral Holdings Group 0.43 0.50 -13%
Living and Leisure Australia Group 0.03 0.02 13%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 3.10 3.20 -3%
Dusit Thani Public Co Ltd 18.00 20.50 -12%
The Erawan Group Public Limited 1.47 1.47
Grande Asset Development 1.90 1.90
Laguna Resorts & Hotel Public Co Ltd 22.70 22.60 0%
Minor International PCL 5.75 6.45 -11%
Hong Kong Stock Exchange (HK$)
Miramar Hotel International Ltd 4.75 4.89 -3%
Regal Hotels International Holdings Ltd 1.78 1.79 -1%
Sino Hotels Holdings Ltd 2.68 2.60 3%
The Hong Kong & Shanghai Hotels Ltd 5.19 5.66 -8%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.20 0.20 0%
ART Management Pte Ltd 0.51 0.53 -3%
Banyan Tree Holdings Limited 0.39 0.40 -3%
CDL HTrust 0.61 0.61 0%
Hotel Grand Central Ltd 0.47 0.46 2%
Hotel Plaza Ltd 1.29 1.26 2%
Hotel Properties Ltd 0.90 0.89 1%
Mandarin Oriental International Ltd (US$) 0.99 1.00 -1%
Shangri-La Asia Ltd 8.96 9.10 -2%
Stamford Land 0.24 0.24 0%
Return to Headlines
HVS Beijing
David Ling
HVS Hong Kong
Mark Keith & David Ling
HVS Mumbai
Manav Thadani
HVS New Delhi
Manav Thadani
HVS Shanghai
David Ling
HVS Singapore
David Ling
Disclaimer: Information provided above has been gathered from various market sources. HVS has not independently verified the accuracy of the information provided. Interested parties should not rely on the information as statement of facts and are advised to make their own independent checks to verify the information provided. For further information, please feel free to contact HVS Singapore.
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