Hotel industry and travel news from around the Asia Pacific region: Indonesia Government increases budget to lift tourism business, Metro Pacific Investment Corporation and Dusit International partner in the Philippines and more...
Indonesia Government Announces IDR298.5 Billion Budget to Lift Tourism Business
The Indonesia government has allocated a budget of IDR298.5 billion (USD21.5 million) to stabilise Indonesia’s economy and cushion the impact of economic slowdown on tourism. IDR98.5 billion has been set aside as incentives for airlines and tour operators to encourage provision of special discounts for tourists. IDR103 billion has been earmarked for promotional activities, IDR25 billion will go towards improving tourist destination while IDR72 billion will be invested on influencers. The government will grant IDR443 billion to airlines in the form of a 30% discount for 25% of the total available seats per flight to destinations such as Yogyakarta, Manado, Bali, Mandalika, Labuan Bajo, Bangka Belitung, and Batam, and inject additional incentives of up to 50% for flight tickets to ten tourist destinations. The central government will also provide grants of IDR3.3 trillion to 33 district and city governments in the ten tourist destinations in return for waiving hotel and restaurant taxes for the next six months.
Trepang Hotel Group Acquires Kimberley Sands Resort and Spa in Broome
Australia-based Trepang Hotel Group (“Trepang”), owned by businessman, John ‘Foxy’ Robinson, has announced the acquisition of the 72-key Kimberley Sands Resort and Spa in Broome, for an undisclosed sum on 13 February 2020. Trepang has portfolios located across Western Australia, the Northern Territory and Queensland, including the 72-key Kimberley Grande Resort in Kununurra, the 200-key Rydges Palmerston in Darwin and the 192-room hotel at the Coolangatta Airport on the Gold Coast, which is currently under construction. Subsequent to the acquisition, Kimberley Sands Resort and Spa will be the first niche market luxury hotel in Trepang’s portfolio. Trepang is expected to keep the resort name, remove its adult only policy, invest in modernising and upgrading some facilities before reopening in May 2020.
PHP1.6 Million Partnership Between Metro Pacific Investment Corporation and Dusit International in the Philippines
Philippine-based PSE-listed Metro Pacific Investments Corporation (“MPIC”) has signed a PHP1.6 billion (USD32 million) investment agreement with Thailand-based Dusit Thani Public Company Limited (“Dusit”), branded as Dusit International, to jointly develop and manage hospitality and residential properties in the Philippines. The partnership will focus on the development of two hotels and three condominiums at sites long held by the company in the province of Batangas as well as upgrading Dusit’s existing properties in the country. Under the agreement, Philippines-based Metro Vantage Properties Incorporation, the newest real estate, hospitality, and tourism subsidiary of MPIC, will lead the design, development, marketing, and sales of the real estate properties while Dusit Thani Philippines will oversee the hospitality and tourism business.
VietJet Air to Commence Three New Routes to India
Vietnam-based budget carrier, VietJet Air (“VietJet”), has announced the commencement of three new flights to India. VietJet will begin flying five times per week on the New Delhi-Danang route starting 14 May 2020. VietJet will also connect Mumbai with Hanoi and Ho Chi Minh City through thrice-weekly flights and four-times-weekly flights, commencing on 15 May and 16 May 2020, respectively. The new routes will complement VietJet’s existing service to India, which include direct flights to New Delhi, with the launch of four-times-weekly flights from Ho Chi Minh City, and thrice-weekly flights from Hanoi. The airline is also negotiating with India-based low-cost carrier, IndiGo, to forge a codeshare agreement to expand its reach to other Indian cities where the airline is not operating flights. VietJet is focusing on point-to-point services in the Indian market. VietJet has a joint venture, Thai VietJet Air, established with Thailand-based Kannithi Aviation Company Limited, operating as regional carrier, Kan Air, and may consider operating flights through Thai VietJet Air to India in the future.