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COVID hospitality bulletin Asia Pacific - April 2022
Friday, 8th April 2022
Source : AP Hospitality Advisors

Starting in late March China is going through one of the largest lockdowns in Shanghai to tackle the spread of Omicron, while Singapore lifted all quarantine requirements and entry restrictions for fully vaccinated travelers, starting from April 1.

China

Starting in late March China is going through one of the largest lockdowns in Shanghai to tackle the spread of Omicron. The lockdown is taking place in two stages starting from the eastern side of the city. Although the fully vaccinated population has reached over 87% in China, the government remains mute on reopening the border, instead tightening border controls on all international and cross-regional arrivals. The zero-COVID (or “dynamic zero") strategy is faced with small outbreaks in China two years after the pandemic started, and even a small number of cases might trigger lockdowns of entire cities.

The strict entry control between different cities and provinces has stimulated more local tourism and excursions. The ski season in northern China ended in late March while more indoor ski resorts emerge after the Winter Olympics this year. According to the report released by China Tourism Academy, travelers from warmer cities in southern China are increasingly eager to spend on winter sports, and cities like Hangzhou and Shenzhen are seeing more indoor facilities providing related experiences even during summer.

Other popular activities include flower viewing, cultural experiences and lesser-known destinations are trends observed during the 3-day spring break in China.

Indonesia‍

Starting 22 March, quarantine requirements for international air travelers arriving at operating airports across Indonesia was waived after a successful two-week quarantine-free travel trial in Bali, Batam, and Bintan. While Bali opened its door to international travelers in October last year, only 45 international arrivals were recorded in the whole year. The government also granted inbound travelers from 25 countries visa on arrival, such as China, Japan, Korea, and all ASEAN members starting in late March.

Meanwhile, the government continues the development of “Super Priority Destinations” across Indonesia, the 5 existing focal points include Lake Toba, Borobudur, Labuan Bajo, Mandalika and Likupang. Despite the lesser popularity compared with Bali, these five destinations have their advantages and potential in becoming world-class destinations. For example, Borobudur is named as one of the UNESCO cultural heritages, and Lake Toba is the largest lake in Southeast Asia with abundant natural resources.

Singapore

Starting from April 1, Singapore lifted all quarantine requirements and entry restrictions for fully vaccinated travelers with valid pre-departure tests and travel insurance. The number of daily new cases has dropped from over 20,000 in February this year to around 6,000 at the end of March. The city-sate is also loosening related social distancing measurement at the same time, including optional mask wearing in outdoor area, greater capacity for events and gatherings, and sale of alcohol at F&B outlets in late evenings.

Prime Minister Lee Hsien Loong and the team announced that Singapore would move towards a new phase of living with Covid-19. The new measurements are expected to boost the arrival of both leisure and business travelers more effectively than the VTLs with certain countries enacted in the past months.

While the number of visitor arrivals would take some time to bounce back to 2019’s level, the city state stays optimistic for its leisure and hospitality development. Two integrated resorts operator, Marina Bay Sands (“MBS”) and Resorts World Sentosa (“RWS”), both announced their expansion plan this year.

MBS currently undergoes a USD 3.3 billion expansion scheduled to be completed in 2026, and the plans including renovation on existing assets and adding a 4th tower and a 15,000-seat arena. RWS, on the other hand, would start its USD 3 million expansion of Universal Studio and aquarium in Q2 2022, while the renovation of its hotel properties will take place in multiple phases.

AP Hospitality Advisors serves owners, investors, developers, operators and lenders of hospitality assets across Asia-Pacific. The team blends expertise in operations, real estate and finance to support any critical step in the asset life-cycle.

www.ap-ha.com

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