HVS Asia Pacific Hospitality Newsletter - Week Ending 20 August 2021 (August 23, 2021)

HVS Monday Musings: Government Initiatives to Rebuild Indian Tourism Post the Second Wave

By Mandeep S Lamba and Dipti Mohan
The Indian tourism sector is gradually coming back to life after the second wave of the pandemic in the country. State governments are taking several steps to revive the sector, some of which have been highlighted in this article.

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Singapore to Launch Vaccinated Travel Lanes

On 19 August 2021, Singapore has announced that it would launch its first vaccinated travel lanes with Germany and Brunei. Slated to begin on 8 September 2021, fully vaccinated travellers departing from the two countries can enter Singapore without serving a Stay-Home Notice (“SHN”) but are expected to undergo multiple polymerase chain reaction (“PCR”) tests. Four PCR tests would be administered before, during, and after the traveller’s arrival to Singapore. Travellers from Hong Kong could apply for the Air Travel Pass, which would allow them to enter Singapore without the need for SHN but are to serve an isolation period prior to the release of their PCR result. In addition, Singapore has updated their border measures, which classifies countries into four categories. Each category would have a differentiated border measure, ranging from negating SHN upon a negative PCR result in Category 1 to serving the full 14-day SHN at a dedicated facility with both Antigen Rapid Test and PCR test administered. Travel bans would still be imposed on individuals with a recent travel history to Bangladesh, India, Myanmar, Nepal, Pakistan and Sri Lanka.

Thailand Expands Travel Options with the ‘7+7’ Extension Under the Phuket Sandbox Program

Thailand government has officially approved the ‘7+7’ extension plan under the Phuket Sandbox program to attract more travellers to Thailand. Currently vaccinated travellers must stay in Phuket for 14 days before moving freely around Thailand. Under the new ‘7+7’ scheme, travellers first spend seven nights in Phuket, then another seven nights in selected destinations including Koh Phi Phi, Koh Ngai, and Railay in Krabi; Khao Lak and Koh Yao in Phang-Nga; and Koh Samui, Koh Phangan and Koh Tao in Surat Thani. Travellers must use approved modes of transport to enter those cities, and a certificate of entry for each route must be obtained before departing for Thailand. Furthermore, travellers vaccinated with Russian Sputnik V vaccine are now allowed to enter Thailand under the sandbox program. The Phuket Sandbox program, which launched in July was deemed to be a success. The program has welcomed 17,000 international travellers in July and generated around THB1 billion in revenue. A total of 335,000 room nights have been booked in Phuket for the period of July to September. It is believed that the ‘7+7’ scheme will open up more pilot destinations in Thailand, bringing positive economic impact to the country while ensuring the health and safety of both the locals and tourists.

Wonder Reef Dive Attraction to Launch in Gold Coast

On 11 August 2021, the Gold Coast began the construction of its newest underwater attraction, the Wonder Reef. The Queensland government has invested AUD2.5 million in this project and has provided a 50-year lease over the seabed off Main Beach. Slated to open in early 2022, the AUD5 million installation consists of nine steel and concrete structures, anchored at a depth of 30 metres. Marine experts would be able to plant local species of coral, which aids in coral production and encourages a rich diversity of sea life. Queensland Environment Minister Meaghan Scanlon stated that in addition to the environmental benefits, the Wonder Reef is expected to attract 160,000 new visitors and deliver AUD32 million in tourism investment within the next decade. The Wonder Reef will create a 32,000 cubic-metre marine habitat and join a collection of artificial reef dive sites in Queensland. Other artificial reefs include Townsville’s Museum of Underwater Art, ex-HMAS Tobruk in the Great Sandy Marine Park, and ex-HMAS Brisbane off Mooloolaba that aims to create a unique diving experience for visitors of the region.

World’s Largest Legoland Resort to Open in Shenzhen

The world’s largest Legoland holiday resort will be built in Shenzhen’s Dapeng New Area, with total investment expected to reach RMB4.7 billion (USD725.6 million). According to an announcement by Shenzhen Exchange Group, the land for the holiday resort will open for bidding on 23 August 2021. Covering an area of over 533,000 square metres, it consists of a Legoland theme park, a Legoland water park, a Legoland Discovery Centre, a scenic area, a tourism service zone, and three Lego-themed hotels that will provide more than 1,100 rooms. According to Shenzhen Evening News, the project will be operated independently by UK-based Merlin Entertainments Group, the world’s second-largest tourist attraction operator, and interested local investor is China-based Hazen Holdings. This mega project is expected to be completed in four years and will be the third Legoland holiday resort in China. The other two resorts are located in southwestern Sichuan province and Shanghai, respectively, with the former scheduled to be completed in 2023 and the latter expected to open in early 2024. The Shenzhen Legoland resort is expected to attract two million visitors in its first year of operation and the annual figure could double within five years of opening, as estimated by Shenzhen Exchange Group.

Absolute Share Price Performance, as on 20 August 2021

Closing Share Price as at 20 August 2021 13 August 2021 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.07 1.92 8.1%
Event Hospitality & Entertainment Ltd 12.48 12.60 -1.0%
General Property Group 4.79 4.66 2.8%
Mirvac Group 3.05 3.00 1.7%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 32.25 29.00 11.2%
Dusit Thani Public Co Ltd 9.90 9.90 0.0%
The Erawan Group Public Co Ltd 3.00 2.70 11.1%
Grande Asset Hotels & Property Public Co Ltd 0.52 0.53 -1.9%
Laguna Resorts & Hotel Public Co Ltd 31.00 31.50 -1.6%
Minor International Public Co Ltd 32.00 29.75 7.6%
S Hotels and Resorts Public Company Limited 3.50 3.18 10.1%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 5.50 5.39 2.0%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co.,Ltd. 3.08 2.77 11.2%
Guangzhou Dong Fang Hotel Co Ltd 6.68 6.59 1.4%
Huazhu Group Limited 43.57 43.93 -0.8%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 14.20 14.40 -1.4%
Regal Hotels International Holdings Ltd 3.80 3.91 -2.8%
Sino Hotels Holdings Ltd 2.43 2.43 0.0%
The Hong Kong & Shanghai Hotels Ltd 6.81 6.73 1.2%
Shangri-La Asia Limited 6.35 6.80 -6.6%
National Stock Exchange (INR)
Chalet Hotels Ltd 165.55 171.25 -3.3%
IHCL (Taj Hotels, Resorts & Palaces) 138.6 142.3 -2.6%
EIH (Oberoi Hotels & Resorts) 102.6 105.1 -2.4%
Hotel Leela Ventures 7.7 9.0 -14.5%
Lemon Tree Hotels Ltd 39.0 40.0 -2.4%
Korea Exchange (KRW)
The Shilla 84300 90000 -6.3%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.36 0.37 -2.7%
ARA Htrust (US$) 0.50 0.51 -2.9%
Ascott Residence Trust 1.01 1.02 -1.0%
Banyan Tree Holdings Limited 0.33 0.33 1.5%
CDL Hospitality Trusts 1.16 1.17 -0.9%
Eagle Htrust 0.14 0.14 0.0%
Far East Hospitality Trust 0.59 0.59 0.9%
Frasers Hospitality Trust 0.51 0.52 -2.9%
Hotel Grand Central Ltd 1.01 1.03 -1.9%
Hotel Properties Ltd 3.42 3.38 1.2%
Mandarin Oriental International Ltd (US$) 2.02 2.00 1.0%
Stamford Land Corporation Ltd 0.50 0.51 -2.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 140.5 147.5 -4.7%
The Ambassador Hotel, Ltd 27.4 27.4 0.0%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 61200 64500 -5.1%
Imperial Hotel, Ltd 1925 1926 -0.1%
Red Planet Japan Inc 52 54 -3.7%

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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