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Featured in this Asia Pacific Hospitality Newsletter - Week Ending 19 September 2008
Thailand Tourism Sector Affected By Political Unrest
JW Marriott Danang Resort To Open In 2011
Malaysia’s Berjaya Land Berhad In Joint Venture With Libya’s Oyia Co To Develop Integrated Project
In Tripoli, Libya, North Africa
Okura Aims To Manage 50 Hotels By 2018
Goa’s Tourism Industry Facing Anxious Wait After Flight Cancellation
Hong Kong’s Tourism Board In Danger Of Missing Arrivals Target
Absolute Share Price Performance, As At 19 September 2008
Thailand Tourism Sector Affected By Political Unrest Return to Headlines
According to market analysts, Thailand’s tourism industry which accounts for approximately 6% of the nation’s gross domestic product (GDP) is expected to suffer losses of around US$2 billion in 2008 should the political unrest in the nation extend. Popular tourist destinations such as Pattaya, which are highly dependent on tourism revenue, are expected to be affected under the political conflicts. Pattaya, which is approximately two and a half hours from Bangkok, has witnessed a decline in visitor arrivals by 50% since September 2008 and business leaders in the area are expecting a 30% downturn in 2008. Entering the peak holiday season, the tourism authorities plan to reassure the travellers through embassies and foreign-owned businesses in Pattaya that holidays in Thailand will be safe.
JW Marriott Danang Resort To Open In 2011 Return to Headlines
The first JW Marriott hotel, JW Marriott Danang Resort, is scheduled to open in Vietnam’s central coastal city, Danang, in 2011. Marriott International has signed a long-term management agreement with VinaCapital Danang Resort Limited to manage the 271-room JW Marriott Danang Resort which has an investment capital of US$60 million. The resort is part of a 2.6-million-square-metre mixed-use development which comprises villas and a golf course, as well as residential developments, an exhibition and convention centre, a trade centre and two mid-tier hotels which are expected to be completed in the second phase of the development.
Malaysia’s Berjaya Land Berhad In Joint Venture With Libya’s Oyia Co To Develop Integrated Project In Tripoli, Libya, North Africa Return to Headlines
Malaysia’s Berjaya Land Berhad’s (Bland) subsidiary, Berjaya Leisure (Cayman) Limited (BCayman) has partnered with Libya’s Oyia Co for Development and Tourism Investment (Oyia) to develop a US$2 billion integrated development in Tripoli, Libya, North Africa. Occupying three parcels of land totalling approximately 4.1 million square metres in size, the development is expected to comprise high-end residential and commercial developments including 3,640 mid-rise apartments, 120 golf villas, a 300-room luxury hotel with serviced residences and luxury villas, as well as a 300-room business hotel. In addition, the development will feature a shopping mall, a medical centre, two international schools, a 1.45-million-square-metre public park and an 18-hole signature golf course and clubhouse. The project will be carried out in phases over a seven- to ten-year period and undertaken by a joint venture company, Berjaya Oyia Development Limited, which has an initial capital of approximately US$8.3 million. BCayman will hold a 60% stake in the joint venture while Oyia will hold the remaining 40% stake.
Okura Aims To Manage 50 Hotels By 2018 Return to Headlines
Japan’s Hotel Okura Company (Okura) is planning to increase the number of hotels it operates from the current 23 to 50 by 2018, with the majority of the new developments in Asia. Okura is looking to increase its portfolio to 30 properties totalling approximately 10,000 rooms in the next three to five years and 50 properties totalling 15,000 rooms by 2018. In terms of its development strategy, Okura will be focussing on managing the properties instead of building or acquiring them. Currently, Okura operates 17 hotels in Japan and six locations overseas, totalling approximately 7,350 guestrooms.
Goa’s Tourism Industry Facing Anxious Wait After Flight Cancellation Return to Headlines
The cancellation of the season’s first incoming chartered flight to Goa, Western India, has led to fears of decline in businesses, especially amidst the recent terrorist bombings in Ahmedabad and Delhi, India. The cancelled flight, from Moscow, was originally scheduled to land in Dabolim Airport, Goa, on September 27 to mark the start of the October–March tourist season. Industry experts have warned of a 10% to 15% decline in arrivals for this season. Goa, known for its pristine beaches, typically attracts 400,000 arrivals a year, with the majority arriving through chartered flights. In 2007, 170,000 visitors were recorded from the 710 chartered flights which arrived in Goa.
Hong Kong’s Tourism Board In Danger Of Missing Arrivals Target Return to Headlines
The Hong Kong Tourism Board is facing the prospect of not meeting its target arrivals of 30.40 million for 2008 due to a decline of 80,000 arrivals recorded in August 2008 as compared to the same period last year. According to preliminary figures, approximately 2.68 million arrivals were recorded in August, representing a 2.88% decline from 2007 figures. For the first eight months of 2008, a total of 19.57 million visitors were recorded and a further 10.83 million visitors are needed in order to meet the arrivals target. Some of the reasons cited for the decline were the global economic downturn, mainland China visa restrictions imposed during the Olympics and the recent typhoon. In 2007, there were 9.93 million arrivals recorded during the same four-month period between September and December.
Absolute Share Price Performance, as at 19 September 2008
Closing Share Price as at September 19 2008 September 12 2008 % Change
Australia Stock Exchange (ASX)
Amalgamated Holdings 4.55 4.67 -3%
General Property Group 1.90 1.94 -2%
Mirvac Group 2.90 2.88 1%
Ocean Capital Limited 0.40 0.40
Thakral Holdings Group 0.77 0.75 2%
Living and Leisure Australia Group 0.03 0.04 -17%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 5.00 5.10 -2%
Dusit Thani Public Co Ltd 36.00 39.50 -9%
The Erawan Group Public Limited 3.18 3.40 -6%
Grande Asset Development 3.06 3.36 -9%
Laguna Resorts & Hotel Public Co Ltd 36.25 38.75 -6%
Minor International PCL 11.50 12.30 -7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel International Ltd 8.88 9.45 -6%
Regal Hotels International Holdings Ltd 0.22 0.24 -10%
Sino Hotels Holdings Ltd 3.53 3.55 -1%
The Hong Kong & Shanghai Hotels Ltd 9.32 10.20 -9%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.32 0.32
ART Management Pte Ltd 0.76 0.72 6%
Banyan Tree Holdings Limited 1.06 1.01 5%
CDL HTrust 1.13 1.16 -3%
Hotel Grand Central Ltd 0.74 0.81 -9%
Hotel Plaza Ltd 1.46 1.41 4%
Hotel Properties Ltd 1.39 1.65 -16%
Mandarin Oriental International Ltd (US$) 1.68 1.79 -6%
Shangri-La Asia Ltd 11.48 13.86 -17%
Stamford Land 0.41 0.41
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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