HVS Asia Pacific Hospitality Newsletter - Week Ending 10 January 2020 (January 13, 2020)

HVS Global Hotel Industry Outlook - Ushering in a New Decade

The Global Hotel Industry Outlook report provides expert insights into regional performance for Asia, Canada, Europe, India, Mexico, Middle East, and the United States.

To view and download the full article, please click here.

Philippine Department of Tourism to Boost Philippines’ Tourism Infrastructure and Connectivity

The Philippine tourism and transportation officials have gathered to strengthen the tourism infrastructure convergence programme to boost the country’s tourism industry with enhanced tourism infrastructure and increased connectivity. During the conference, a Memorandum of Agreement (“MoA”) titled Institutionalized Leveraging of Infrastructure Program has been signed between the Philippine Department of Tourism (“DOT”) and the Department of Transportation (“DOTr”). The MoA will see both parties joining efforts to boost airport and route development programmes. According to the tourism chief, the Tourism Infrastructure and Enterprise Zone Authority (“TIEZA”), the implementing agency and infrastructure arm of the DOT, is currently working with the DOTr on the possibility of funding several domestic airports, to equip them with night-rating capabilities in order to enhance aviation safety. The funds are expected to amount to PHP1 billion (USD19.6 million) and subjected to approval by the TIEZA Board. Other efforts to boost Philippines’ tourism infrastructure and connectivity include the construction of the Mactan-Cebu International Airport, the Bohol-Panglao International Airport, and a new international airport in Daraga, Albay. Expansion plans for Davao, Iloilo, Kalibo, Puerto Princesa and Laguindingan international airports are also underway.

Malaysia Airlines and Japan Airlines to Launch Joint Venture in 2020

Malaysia Airlines Berhad (“MAB”) and Japan Airlines Company Limited (“JAL”) have signed a Memorandum of Understanding to launch a joint venture on routes between their countries in 2020 after gaining approval from regulators. The two carriers have an existing codeshare agreement before the joint venture application as members of the Oneworld Alliance, and the latest authorisations will allow much closer cooperation in areas such as scheduling, capacity, sales and marketing, and revenue planning. Moving forward, MAB announced its intention to form a closer partnership with Singapore Airlines this year, and signed a codeshare deal with British Airways. Malaysia Airlines currently flies twelve times a week between Kuala Lumpur and Tokyo, while Japan Airlines flies the route once per day. Malaysia Airlines also operates daily Kuala Lumpur-Osaka and twice weekly Kota Kinabalu-Tokyo services.

India’s Ministry of Tourism Releases its Year-end Review

India’s Ministry of Tourism released its year-end review with key tourism statistics as well as a synopsis of the key developments in the sector and Ministry initiatives during the year. In 2019, the Ministry has taken several initiatives including the reduction of E–visa fees, reduction of goods and services tax on hotel room booking, as well as promotion of adventure tourism with the opening of 120 new peaks for mountaineering. As per the year-end review, Foreign Tourist Arrivals (FTAs) to the country from January to November 2019 recorded 9.67 million, registering a year-on-year (y-o-y) growth of 3.2%. During the first eleven months of 2019, approximately 2.55 million tourists arrived on e-Tourist Visa as compared to 2.06 million during the same time last year, registering a y-o-y growth of 23.8%. Foreign Exchange Earnings have increased by 7.4% during the period January-November 2019 as compared to the previous year.

China Eastern Airlines Announces a New Beijing-Paris Route

Shanghai-based China Eastern Airlines (“CE Air”) has announced that it will launch a new international daily flight service between the new Beijing Daxing International Airport in the capital of China and Paris Charles de Gaulle Airport in France. Starting from 29 March 2020, the new route will be serviced by a 288-seater Airbus A350-900 with four luxury business class seats, 36 business class seats, 32 premium economy class seats and 216 economy class seats. The flight bound for Paris will take off from Beijing Daxing International Airport at 1:00, landing in Paris Charles de Gaulle Airport at 6:05 on the same day. The return flight will depart from Paris at 14:20, arriving in Beijing at 6:40 the following day. CE Air is also expected to increase frequency on its flights between Shanghai Pudong International Airport and Paris from 14 to 17 flights per week this year.

Absolute Share Price Performance, as on 10 January 2020

Closing Share Price as at 10 January 2020 3 January 2020 % Change
Australia Stock Exchange (ASX)
Elanor Investors Group 2.10 2.08 1.0%
Event Hospitality & Entertainment Ltd 13.71 13.97 -1.9%
General Property Group 5.80 5.73 1.2%
Mirvac Group 3.27 3.21 1.9%
Bangkok Stock Exchange (THB)
Central Plaza Hotel Public Co Ltd 23.70 24.60 -3.7%
Dusit Thani Public Co Ltd 9.65 9.70 -0.5%
The Erawan Group Public Co Ltd 5.15 5.55 -7.2%
Grande Asset Hotels & Property Public Co Ltd 0.70 0.76 -7.9%
Laguna Resorts & Hotel Public Co Ltd 41.00 41.75 -1.8%
Minor International Public Co Ltd 33.75 35.75 -5.6%
S Hotels and Resorts Public Co Ltd 2.86 3.24 -11.7%
China Shanghai Stock Exchange (RMB)
Jinling Hotel Corporation Ltd 9.36 9.33 0.3%
China Shenzhen Stock Exchange (RMB)
Huatian Hotel Group Co Ltd 2.66 2.68 -0.7%
Guangzhou Dong Fang Hotel Co Ltd 7.53 7.52 0.1%
Huazhu Group Limited 39.86 41.50 -4.0%
Hong Kong Stock Exchange (HK$)
Miramar Hotel & Investment Co Ltd 15.32 15.66 -2.2%
Regal Hotels International Holdings Ltd 4.37 4.32 1.2%
Sino Hotels Holdings Ltd 2.90 2.89 0.3%
The Hong Kong & Shanghai Hotels Ltd 8.58 8.50 0.9%
Shangri-La Asia Limited 8.08 8.24 -1.9%
National Stock Exchange (INR)
Chalet Hotels Ltd 338.10 339.50 -0.4%
IHCL (Taj Hotels, Resorts & Palaces) 139.7 147.6 -5.4%
EIH (Oberoi Hotels & Resorts) 147.2 145.0 1.6%
Hotel Leela Ventures 5.9 6.0 -1.7%
Lemon Tree Hotels Ltd 58.5 63.3 -7.6%
Korea Exchange (KRW)
The Shilla 102500 94000 9.0%
Singapore Stock Exchange (S$)
Amara Holdings Ltd 0.46 0.46 -1.1%
ARA HTrust (US$) 0.87 0.87 -0.6%
Ascendas Hospitality Trust 1.12 1.12 0.0%
Ascott Residence Trust 1.33 1.33 0.0%
Banyan Tree Holdings Limited 0.43 0.44 -1.1%
CDL Hospitality Trusts 1.64 1.63 0.6%
Eagle HTrust (US$) 0.54 0.56 -3.6%
Far East Hospitality Trust 0.75 0.75 0.0%
Frasers Hospitality Trust 0.72 0.72 -0.7%
Hotel Grand Central Ltd 1.29 1.30 -0.8%
Hotel Properties Ltd 3.70 3.82 -3.1%
Mandarin Oriental International Ltd (US$) 1.78 1.80 -1.1%
Stamford Land Corporation Ltd 0.50 0.50 1.0%
Taiwan Stock Exchange (NT$)
Formosa International Hotels Corporation 172.0 169.0 1.8%
The Ambassador Hotel, Ltd 31.4 30.0 4.7%
Tokyo Stock Exchange (JPY)
Japan Hotel REIT Investment Corp. 80800 81200 -0.5%
Imperial Hotel, Ltd 1969 1979 -0.5%
Red Planet Japan Inc 114 113 0.9%

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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