|News from around Greater China region, Oct 23.|
Tuesday, 23rd October 2012
Source : HVS International
Hotel, industry and travel news from around the Asia Pacific region; this week: China to become 2nd wealthiest country within 5 years, Hong Kong-Macau tie up and more....
CHINA TO BECOME THE SECOND WEALTHIEST COUNTRY BY 2017
According to Credit Suisse Research Institute’s Global Wealth Report 2012, there were 964,000 millionaires in China by mid-2012, and, by 2017, the number is expected to almost double to 1.9 million. The household wealth is measured as the value of financial assets and non-financial assets minus total household debts in current US dollar terms. The report showed China's total household wealth jumped to $20 trillion by mid-2012. By 2017, Credit Suisse states that it expects China to add another $18 trillion in family wealth, making China the second wealthiest country by 2017. By then, the United States is still forecasted to be the world's richest nation, with an $89 trillion of household net worth.
NEW STATE-LEVEL ZONE TO BOOST TIES BETWEEN HONG KONG AND MACAO
The central government has unveiled a development plan for Nansha New Area, a State-level pilot zone in Guangdong province, to foster closer business ties with Hong Kong and Macao. As the country's sixth State-level zone, Guangzhou's Nansha district will enjoy a slew of preferential policies on tax, land management, financial innovation and industrial development. Located in the southern tip of Guangzhou, Nansha covers an area of 803 square kilometers. It has an obvious geographical advantage as it is only 38 nautical miles from Hong Kong and 41 nautical miles from Macao. Nansha will focus on developing the manufacturing and modern service sectors, including shipping logistics, high-tech innovation and leisure tourism, automobiles and shipbuilding. By 2025, the service sector is targeted to account for 65 percent of the area's GDP. The service industry accounted for 43.1 percent of China's total GDP in 2011. Nansha New Area will also pilot economic reforms and explore the economic structural transformation of the Pearl River Delta area, closer ties with Hong Kong and Macao will be fostered.
CHINA'S 2012 TOURISM REVENUES TO REACH $413BILLION
China's tourism revenues are expected to reach 2.6 trillion Yuan ($413 billion) in 2012, up by a year-on-year growth of 16.6%, the country will likely see 3.13 billion tourists in 2012, marking a 12.8% increase from the previous year, according to a report released by the China Tourism Academy. In the first three quarters of 2012, there were 2.35 billion tourists across the country, who brought about 1.92 trillion Yuan of tourism revenues, up by a year on year growth of 15.3%, the report said.
SWISSOTEL EXPANDS IN CHINA WITH NEW HOTEL
The international hotel group Swissôtel Hotels & Resorts continues to expand its portfolio in China. The future deluxe hotel will be located in Changsha, the capital of Hunan Province and the transportation hub in south central China. Swissôtel Changsha will be part of a mixed-use development featuring a Grade A office tower, and it is scheduled to open in 2014. Swissôtel Changsha will offer 400 rooms and suites with a minimum room size of 40 square metres, five restaurants and bars, over 2000-square-metre meeting and banqueting space and recreational facilities including a Pürovel Spa. The hotel is located in the Yuelu District of Changsha, approximately 30 kilometres from the international airport and 15 kilometres from the city centre.
CHEUNG KONG HOLDINGS AIM TO RAISE CAPITAL THROUGH LISTING
According to Wall Street Journal, Billionaire Li Ka-Shing's property flagship Cheung Kong Holdings Ltd is aiming to raise US$500 million to US$800 million by listing its Hong Kong serviced-suites business. The sale would free up capital for new investments at a time when Hong Kong’s property market continues to hit new highs. Cheung Kong intends to transfer four of its Horizon brand properties in Kowloon and the New Territories into a separate trust. Cheung Kong said in a statement late Thursday that a company unit has applied to the Hong Kong stock exchange for the possible listing in the form of "share stapled units”. After the listing, Cheung Kong and its Hutchison Whampoa Ltd unit will hold a stake of less than 30% in the stapled units. Terms of Cheung Kong's listing have not been finalized and the proposed transaction is subject to the approval of Hong Kong's stock exchange. Following the listing, the properties will remain under the management of a Cheung Kong subsidiary. Sources state that Cheung Kong has named Bank of America, Merrill Lynch, Singapore's DBS Bank Ltd and Standard Chartered Ltd as underwriters of the planned listing.