HVS Asia Pacific Hospitality Newsletter - Week Ending 2 July 2021 (July 5, 2021)

HVS Monday Musings: Effective Destination Management – the Key to Sustainable Tourism

By Mandeep S Lamba and Dipti Mohan
Several popular global destinations went from over-tourism to under-tourism in the last year, encouraging their tourism authorities to utilize the downtime to develop strategies that can help balance the two extremes in the future. Read on to know more.

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Queensland Resort Dunk Island Acquired at AUD20 Million in Australia

Australia-based Upsense Media Capital has announced their AUD20 million acquisition of the freehold Dunk Island. Situated in the outskirts of Queensland, the island was previously a tourism icon in Queensland and is divided into three areas: A national park, a freehold-developmental region, and a council-owned area that is used for camping. The freehold area once featured the Dunk Island Resort, a 160-key upscale family resort that featured multiple restaurants, a tennis court, a golf course, and a day spa. Other leftover facilities on the island include a mainland power connection grid, perpetual water supply systems, extensive utility infrastructure, and a commercial-ready sealed airstrip. Upsense Media Capital Managing General Partner, Mark Spillane, mentioned that he is looking forward to working with the local community, regional and state government, and other key stakeholders in developing Dunk Island into a sustainable and iconic Australian asset.

New South Wales Government Allocated Millions to Boost State Tourism in 2021 Budget

The New South Wales (“NSW”) government has recently released the 2021 Budget with millions allocated to the tourism industry. An AUD200 million ‘State Significant Event Fund’ will be setup to secure future major events and promote NSW as a premier state to visit and do businesses in over the upcoming four years. AUD40 million will be also reserved to attract major blockbuster art and museum exhibitions to NSW and boost cultural tourism. In addition, an AUD20 million investment will fund a new round of accommodation voucher distribution valued at AUD100 each to stay in Sydney’s hotels. Building on the success of the state-wide ‘Dine and Discover’ voucher program, the current program will extend until 31 July 2021 and an additional AUD50 million will be funded into a new ‘Dine and Discover’ voucher program to accelerate turnovers on Fridays in Sydney. A record pipeline of AUD108.5 billion is also allocated into infrastructure construction, including AUD3.1 billion for the ‘More Trains, More Services’ program to modernise the rail network and AUD2 billion to upgrade the Great Western Highway to reduce traffic congestion. The allocation is deemed necessary to facilitate NSW’s economic recovery and offset the negative impact brought by COVID-19-related uncertainty and border closure.

Construction of Luzon’s First International Cruise Ship Terminal Goes Full Swing

The construction of the first international cruise ship terminal (“ICST”) at Philippines’ Luzon region is anticipated to go full swing. This comes after a formal groundbreaking ceremony led by the Department of Public Works and Highways (“DPWH”) Secretary, Mark Vilar, was held on 15 June 2021. The ICST project will be built at a total cost of PHP920 million, and the first phase includes the construction of the rock and causeway and reclamation of a portion of the Legazpi City Boulevard and Alba Gulf. DPWH-Bicol regional director, Virgilio Eduarte, has said that the ICST is a world-class travel facility and is being considered a mega-tourism project that would contribute to the enhancement of Central Philippines’ tourism industry. Legazpi Mayor, Noel Rosal, said in a separate interview that this project will uplift Legazpi’s tourism industry by boosting arrivals from overseas tourists. He pointed out that the project includes the construction of a seaport that can accommodate a 300-metre-long tourism cruise ship – the standard size of the international cruise ships, and that the terminal’s strategic location will provide a scenic view of the Mayon Volcano. Currently, the first phase is close to 65% completion and a total of PHP150 million of the project’s budget has been spent.

Construction of Major Ecotourism Site Begins in Thanh Hoa, Vietnam

The construction of an ecotourism project worth more than VND3.66 trillion (USD159.61 million) in Thanh Hoa is set to begin. This comes after a ceremony was held at Nghi Son township, the north-central coastal province of Thanh Hoa, on 23 June 2021.  The ecotourism site spans 84.8 hectares and is invested by the Vietnam-based T&T Group (“T&T”). It will feature beachfront villas, a five-star hotel, a shopping area, a golf course, pedestrian zones, and recreation facilities, among others. With the creation of a chain of tourism sites along Thanh Hoa’s coastline, this project aims to help boost socio-economic development at the locality and surrounding regions. The first phase of the project is set to complete in October 2022, with the expected completion to be in May 2024. At the ceremony, the Vice Chairman of the provincial People’s Committee, Nguyen Van Thi, asked local authorities to continue helping T&T address bottlenecks in terms of land and legal procedures, on top of supporting locals affected by the project’s implementation. Meanwhile, T&T was asked to ensure the progress and quality of the project in compliance with regulations. 

Absolute Share Price Performance, as on 2 July 2021

Closing Share Price as at 2 July 2021 25 June 2021 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 1.93 1.91 1.0%
Event Hospitality & Entertainment Ltd 12.42 12.40 0.2%
General Property Group 4.83 4.90 -1.4%
Mirvac Group 2.92 2.98 -2.0%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 32.75 33.00 -0.8%
Dusit Thani Public Co Ltd 9.90 9.90 0.0%
The Erawan Group Public Co Ltd 2.94 2.82 4.3%
Grande Asset Hotels & Property Public Co Ltd 0.54 0.55 -1.8%
Laguna Resorts & Hotel Public Co Ltd 32.00 32.00 0.0%
Minor International Public Co Ltd 29.75 30.25 -1.7%
S Hotels and Resorts Public Company Limited 3.28 3.32 -1.2%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 8.10 8.32 -2.6%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co.,Ltd. 2.78 2.83 -1.8%
Guangzhou Dong Fang Hotel Co Ltd 7.38 7.43 -0.7%
Huazhu Group Limited 54.24 52.79 2.7%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 15.28 15.38 -0.7%
Regal Hotels International Holdings Ltd 4.08 4.05 0.7%
Sino Hotels Holdings Ltd 2.45 2.45 0.0%
The Hong Kong & Shanghai Hotels Ltd 8.19 8.49 -3.5%
Shangri-La Asia Limited 7.49 7.70 -2.7%
National Stock Exchange (INR)
Chalet Hotels Ltd 178.50 181.00 -1.4%
IHCL (Taj Hotels, Resorts & Palaces) 143.0 147.5 -3.1%
EIH (Oberoi Hotels & Resorts) 112.0 113.9 -1.6%
Hotel Leela Ventures 9.9 10.4 -4.3%
Lemon Tree Hotels Ltd 41.8 41.4 1.0%
Korea Exchange (KRW)
The Shilla 96000 98400 -2.4%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.39 0.39 1.3%
ARA Htrust (US$) 0.58 0.56 3.6%
Ascott Residence Trust 1.03 1.02 1.0%
Banyan Tree Holdings Limited 0.34 0.34 0.0%
CDL Hospitality Trusts 1.24 1.27 -2.4%
Eagle Htrust 0.14 0.14 0.0%
Far East Hospitality Trust 0.58 0.60 -3.3%
Frasers Hospitality Trust 0.53 0.53 0.0%
Hotel Grand Central Ltd 1.05 1.06 -0.9%
Hotel Properties Ltd 3.28 3.30 -0.6%
Mandarin Oriental International Ltd (US$) 2.01 1.96 2.6%
Stamford Land Corporation Ltd 0.53 0.55 -2.8%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 149.5 148.5 0.7%
The Ambassador Hotel, Ltd 28.3 29.1 -2.8%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 68000 68100 -0.1%
Imperial Hotel, Ltd 1926 1927 -0.1%
Red Planet Japan Inc 61 60 1.7%

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]
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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