HVS Asia Pacific Hospitality Newsletter - Week Ending 3 July 2020 (July 6, 2020)

Singapore and Malaysia Agreed to Allow Cross-border Travel for some Residents and Business Travellers

In a press statement released by the Singapore Ministry of Foreign Affairs, Singapore Prime Minister Lee Hsien Loong and Malaysian counterpart Muhyiddin Yassin, both countries agreed to allow cross-border travel for selected people, including residents who hold long-term immigration passes for business and work purposes. The two leaders agreed to establish a Reciprocal Green Lane (“RGL”) and a Periodic Commuting Arrangement (“PCA”) for different groups of travellers. The RGL will facilitate cross-border travel for essential business and official purposes. Travellers must adhere to the COVID-19 prevention and public health measures. The measures are being discussed and will have to be mutually agreed upon by both countries. On the other hand, the PCA will allow Singapore and Malaysia residents who hold long-term immigration passes for business and work purposes in the other country to periodically return to their home countries for short-term home leave. The reopening will be carried out in stages, with the groups of people divided into four categories: business professionals, Malaysians working and living in Singapore, Malaysians working in Singapore who commute from Johor on a daily basis, and Malaysian and Singapore citizens.

Several Attractions Commence Gradual Reopening in Singapore

Approximately 13 attractions in Singapore have been approved by Singapore Tourism Board (“STB”) and Ministry of Trade and Industry (“MTI”) to gradually resume operations from 1 July 2020, as the nation enters the second phase of post-Circuit Breaker lockdown. The attractions include the Singapore Zoo, Jurong Bird Park, Flower Dome at Gardens by the Bay, ArtScience Museum, Universal Studios Singapore, and the two casinos at Resorts World Sentosa and Marina Bay Sands. Other attractions and domestic tour operators may apply reopening permits with the STB if they can adhere to safe management measures for employees and customers to reduce transmission risks. Operations may only resume after approvals are granted by the MTI. As a precaution, most attractions will be restricted to no more than 25% of their operating capacity at any one time. Casino access will be limited to existing casino members and annual levy holders. Simultaneously, STB will step up its efforts to ensure that more tourism businesses, including attractions, apply for the SG Clean national certification of excellence in sanitation and hygiene.

Maldives to Reopen Borders with Minimal Restrictions from Mid-July

According to the Maldives Ministry of Tourism, the country is set to reopen its borders to travellers from 15 July 2020, after being closed since March. Hotels located on uninhabited islands and liveaboard boats will open first, followed by guesthouses and hotels on inhabited islands from 1 August, unless for transit purposes. All travellers will be given a 30-day tourist visa free of charge upon arrival with no minimum stay required. However, travellers must have a confirmed accommodation booking before arrival. All travellers must fill in a health declaration card and wear face masks on flights. Hand sanitisation centres have been set up at Velana International Airport where travellers will undergo thermal screening. While no quarantine measures are in place, some resorts may ask travellers to self-isolate when they arrive. Travellers do not need to show a negative Covid-19 test upon arriving into the Maldives. However, anyone with symptoms may be tested at the airport, at their own expense. Local health authorities may also conduct random Covid-19 tests, at no cost to travellers. The country emerged from strict lockdown measures on 15 June when locals were allowed to venture out of their homes without a permit for the first time. Schools, mosques and offices across the island will also reopen in July.

Malaysia Airlines Resumes some International Flights in July

Malaysia-based national flag carrier, Malaysia Airlines (“MAS”) will resume some of its international flights in July to facilitate essential inter-state travel. However, Malaysians are still not allowed to travel abroad, and the border remains closed. According to a press statement by MAS, the airline will adjust its network capacity from time to time to ensure passenger demands are met, prior to normalising the schedule in October for both domestic and international destinations. In June and July, MAS has scheduled once-weekly and twice-weekly flights between Kuala Lumpur and several domestic destinations. There will be thrice-weekly flights between Kuala Lumpur and Penang and Kuching in June, while flights between Kuala Lumpur and Kuching will be increased to five times a week in July. From July, MAS will recommence twice-weekly services between Kuala Lumpur and Cambodia, Denpasar, Dhaka, Hong Kong, Incheon, Kathmandu, London, Melbourne, Narita, Osaka, Perth, Phuket and Sydney. However, services between Kuala Lumpur and Melbourne will be reduced to once a week from 19 to 31 July and services between Kuala Lumpur and Sydney will be reduced to once a week from 6 to 31 July. MAS will also resume flights to Singapore, Bangkok, Surabaya, Mumbai, Chennai, Hyderabad, Taipei and Guangzhou, among other cities in July.

Thailand Reopens International Boarders Aiming for Medical and Wellness Tourism

After recording five weeks with no community transmission of coronavirus cases, The Civil Aviation Authority of Thailand (“CAAT”) announced that the country will lift the ban on international flights on 1 July 2020. The announcement follows the government approving 50,000 foreigners, including business travellers and those with work permits, families or residency back into the country with a requirement of a 14-day quarantine at their own expenses. Although the general tourism is not permitted at the moment, the idea of medical and wellness tourists is in motion according to the spokesman of the Centre for COVID-19 Situation Administration and Thailand’s National Tourism Agency. The country’s medical tourism industry is ranked fourth in the world in terms of value, following the US, South Korea and Turkey. The Medical and Wellness Resort of the World tourism campaign is set to emphasise on the strength of Thailand’s USD600 million medical tourism sector after the country’s success in containing the pandemic.

Absolute Share Price Performance, as on 3 July 2020

Closing Share Price as at 3 July 2020 26 June 2020 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.08 1.20 -10.4%
Event Hospitality & Entertainment Ltd 8.88 8.40 5.7%
General Property Group 4.41 4.32 2.1%
Mirvac Group 2.29 2.26 1.3%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 24.40 22.70 7.5%
Dusit Thani Public Co Ltd 7.50 7.35 2.0%
The Erawan Group Public Co Ltd 3.90 3.80 2.6%
Grande Asset Hotels & Property Public Co Ltd 0.64 0.56 14.3%
Laguna Resorts & Hotel Public Co Ltd 36.25 36.00 0.7%
Minor International Public Co Ltd 21.30 20.30 4.9%
S Hotels and Resorts Public Company Limited 2.26 2.12 6.6%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 7.77 7.62 2.0%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co.,Ltd. 3.33 3.37 -1.2%
Guangzhou Dong Fang Hotel Co Ltd 6.14 6.18 -0.6%
Huazhu Group Limited 32.82 36.43 -9.9%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 13.94 13.88 0.4%
Regal Hotels International Holdings Ltd 3.15 3.09 1.9%
Sino Hotels Holdings Ltd 2.38 2.50 -4.8%
The Hong Kong & Shanghai Hotels Ltd 7.04 6.97 1.0%
Shangri-La Asia Limited 6.73 6.30 6.8%
National Stock Exchange (INR)
Chalet Hotels Ltd 131.95 136.25 -3.2%
IHCL (Taj Hotels, Resorts & Palaces) 79.4 82.1 -3.3%
EIH (Oberoi Hotels & Resorts) 66.0 66.8 -1.3%
Hotel Leela Ventures 5.4 5.4 0.9%
Lemon Tree Hotels Ltd 23.5 24.4 -3.7%
Korea Exchange (KRW)
The Shilla 70900 68500 3.5%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.35 0.36 -1.4%
ARA Htrust (US$) 0.41 0.40 1.3%
Ascott Residence Trust 1.02 1.02 0.0%
Banyan Tree Holdings Limited 0.25 0.25 0.0%
CDL Hospitality Trusts 1.05 1.04 1.0%
Eagle Htrust 0.14 0.14 0.0%
Far East Hospitality Trust 0.53 0.51 2.9%
Frasers Hospitality Trust 0.48 0.47 1.1%
Hotel Grand Central Ltd 0.97 0.96 1.0%
Hotel Properties Ltd 3.27 3.13 4.5%
Mandarin Oriental International Ltd (US$) 1.46 1.47 -0.7%
Stamford Land Corporation Ltd 0.35 0.36 -1.4%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 149.5 148.0 1.0%
The Ambassador Hotel, Ltd 28.5 28.1 1.6%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 43200 47900 -9.8%
Imperial Hotel, Ltd 1776 1808 -1.8%
Red Planet Japan Inc 73 77 -5.2%

For the latest in the hospitality industry, please visit: http://www.hvs.com/. You are also welcome to contact the following personnel.
Hok Yean Chee, Regional President – HVS Asia Pacific [email protected]
Mandeep S. Lamba, President, South Asia – HVS Anarock [email protected]
Daniel J Voellm, Managing Partner – HVS Hong Kong [email protected]
Mei Leng Ho, Senior Vice President – HVS Singapore [email protected]
Steven Zhu, Vice President – HVS Shanghai [email protected]
Florian Kittler, Managing Director – HVS Executive Search Europe & Asia Pacific [email protected]

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