Weekly Hotel Industry Asia Pacific News Roundup from HVS
Invincible Investment Corporation Acquires 6 Properties for JPY 57.2 Billion
Invincible Investment Corporation, a listed Tokyo Hospitality and Residential REIT announces their acquisition of six hotels from US Asset Manager, Fortress Investment Group for a sum of JPY 57.2 billion with the deal expected to close on August 1st. The portfolio of hotels is spread across the country, with presences in Okinawa, Nagano, Okayama, Aomori, Chiba, and Akita. The portfolio acquisition will bring Invincibles' assets under management to JPY 548.6 billion, with 92 hotels valued at JPY 507.8 billion with further considerations to grow the portfolio with selective investments considered competitive in location and facilities, aiming to improve the entire portfolio performance in revenue growth and stability, as mentioned in the company's recent press release.
USD2.1 Billion Integrated Development To Be Developed In Genting Highlands, Malaysia
Malaysia-based Highlands Parkcity Sdn Bhd, in partnership with Malaysia-based Yuk Tung Group and the Association for the Promotion of Higher Education in Malaysia, will be developing Genting Highlands's first CBD and integrated entertainment hub – King's Park. With a gross development value of USD2.1 billion, King's Park will be located five kilometers below the peak of Genting Highlands and 33 kilometers from Kuala Lumpur, Malaysia. King's Park will span over 61 hectares of freehold land and will take place over five phases. The first phase is expected to be completed by 2026 and will feature a commercial centre and a two-kilometer stretch of pedestrian street shops. Other phases will feature the construction of hotels with serviced apartments, two internationally branded theme parks, a halal dining hub, and a Syariah compliant hotel with housing units. With a nature-focused theme, the two theme parks will span 200,000 square feet and will house Malaysia' largest terrarium. To date, it has been confirmed that Swissôtel will be making its debut in King's Park, in late-2028. The final phase of the project will consist of a wellness and medical centre that is expected to be completed in the next eight to ten years.
Tourist Fees Planned For Bali From 2024, With Fees Directed To Cultural Preservation And Tourism Infrastructure Development
The Bali Regional Government has received a proposal to implement a fee for international travelers entering Bali from 2024. The fee is equivalent to 150,000 rupiah (US$10) and has plans to direct these levies for cultural preservation and development of tourism infrastructure. The Bali Provincial Tourism office stated the tourist fees are intended to "maintain Bali's nature, culture, and environment in a sustainable manner, ensuring tourists can continue to enjoy Bali with a sense of security and comfort". The proposal presented in early July, with details of implementation still pending, has garnered support from the stakeholders of the Bali Tourism Industry. The fee is not expected to deter travel to the resort destination, as expressed by the Bali Tourism Board. This tourism fee is a first for Indonesia, and Bali will pioneer the initiative given its reputation as a top destination, and implementing similar levies in other destinations will depend on further evaluation.
Tasmania's New Tourism Strategy
Tourism Tasmania, the Tasmanian Government and tourism industry stakeholders have unveiled the 2030 Tasmanian Visitor Economy Strategy, setting the direction for the state's tourism industry. Tasmania recorded six percent of its Gross State Product from Tourism, the highest in the country, and contributed 13 percent of jobs in the state. In recent months, visitor figures reached pre-Covid levels with significantly higher spending as travelers plan for longer trips and spend on experiences. The past 18 months recorded the largest ever tourism spend of AUD3.9 billion, up from AUD2.3 billion pre-Covid, largely driven by the domestic market, with Singapore representing the fastest-recovering market as shared by Tourism Tasmania's CEO. Singapore, the US, and New Zealand are among the Tasmania's top inbound markets. Currently most flights to Hobart require transfers in Melbourne or Sydney, but given the rebound in visitors, most notably from Singapore, there have been early discussions for direct flights from Singapore to Hobart. It is worth noting the planned works to upgrade Hobart Airport in the next two years, with AUD60 million funding from the federal government. Other enhancements for visitors include the launch of a new website, app, and audio guides to assist travelers with their planning.
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