HVS Monday Musings: India’s Underserved Leisure Tourism Segment is Leading the Post-COVID Revival

By Mandeep S Lamba and Dipti Mohan
Domestic leisure tourism in India is finally receiving the pedestal it always deserved, with hotel companies renewing their focus on increasing footprint at leisure destinations in the country in the post-COVID era. However, there is significant untapped potential in this segment as India has several fledgling tourist places where travelers still struggle to find good quality branded accommodation.

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VinGroup Launches "All-in-One" VND66 Billion Resort Development in Phuc Quoc, Vietnam

On 21 April 2021, Vietnam-based conglomerate, Vingroup Joint Stock Company (“VinGroup”), has announced the inauguration of their long-awaited VND66 billion (USD2.85 billion) resort development. Named the Phuc Quoc United Center, the 1,000-hectare development is situated in the North of Pearl island, Dao Ngoc. The development will feature a myriad of attractions and facilities, including an animal conservation park, Vinpearl Safari, an 18-hole Vinpearl golf course, Corona Casino, shopping and entertainment precincts, a convention centre, street markets, Vinmec hospital, Vinschool inter-level school and Vietnam’s largest theme park, VinWonders Phuc Quoc. An area of 85 hectares situated within the complex is developed as “Grand World, the Sleepless City”, which will feature entertainment centres that operates 24 hours a day. These centres mimic the other famous sleepless cities in the world, such as Venice, Shanghai, Night Market, K-street and Vietnam. The complex will offer over 10,000 rooms, with brands ranging from Vinpearl, VinOasis, VinHoliday to Radisson Blue. The Corona Casino will feature 1,000 slot machines, 100 table games and will be integrated with a 600-seat theatre. Vingroup states that the concept of the “sleepless city” marks a step forward in turning Vietnam into a new international destination on the world map.

Legoland Discovery Centre Hong Kong Officially Opened on 6 March 2021

On 6 March 2021, Hong Kong opened its first Legoland Discovery Centre (“LDC”) in the basement of K11 Musea shopping centre (“K11”) located at Tsim Sha Tsui. The approximately 2,800-square-metres indoor attraction saw 3,000 tickets sold on its first day of opening. LDC comprises ten Lego-themed play areas featuring Kingdom Quest, Miniland, Lego Friends, Master Builder Classroom, Duplo Farm, Café, Magic Bikes, Build & Test, 4D Studio, and a Lego retail shop where guests can purchase Lego toys. Guests can expect to spend two to three hours in the interactive and educational LDC. One of the highlights of LDC is the Miniland, where iconic Hong Kong landmarks such as Star Ferry Central Pier, Peak Tram, Former Kowloon-Canton Railway Clock Tower, Tai O, Temple Street, Blue House in Wan Chai and Mei Ho House were created using over 1.5 million Lego bricks. It took 7,150 hours, 46 Lego builders, nine designers and four technicians to create this first Miniland Lego display in Hong Kong. The LDC is expected to increase sales by almost a third in K11’s kids’ zone. According to the South China Morning Post, there is a trend of Hong Kong’s mall operators incorporating entertainment spaces at their properties to retain customers.

Australia to Aid Tourism Through 800,000 Half Priced Domestic Flights

The Australian government has announced an AUD1.2 billion tourism and aviation rescue package to alleviate the impacts of COVID-19 on the tourism and aviation sector. The package comprises of discounted domestic flights, financial support for international airlines, Qantas and Virgin Australia, extension of existing programmes to 30 September, and the expansion of government-backed loan programme for small and medium-sized businesses. Prime Minister Scott Morrison stated that this package would mean more jobs and investments towards the tourism and aviation sector, which in turn aid in their recovery. Australia’s national carrier, Qantas, mentioned that this package would directly support 7,500 employees, and would allow the company to take more aircraft out of its storage and prepare them for the reopening of international borders. Return flights to 13 eligible locations would receive a 50% discount between 1 April and 31 July, which coincides with Easter and the winter school holidays. The 13 locations consist of Gold Coast, Cairns, the Whitsundays region, Mackay regions, Lasseter, Alice Springs, Tasmanian towns of Launceston, Devonport, Burnie, Broome, Avalon, Merimbula and the Kangaroo Islands.

Seychelles to Fully Open Borders From 25 March 2021

Seychelles has announced plans to reopen its borders for all visitors except for visitors from South Africa from 25 March 2021. While there is no requirement for visitors to be quarantined or vaccinated, visitors will have to provide a negative COVID-19 Polymerase Chain Reaction test taken 72 hours before departure. According to the tourism board, tourists will be allowed to roam Seychelles’ 115 islands without restrictions or minimum stay requirements in resorts. They will only be required to maintain social distancing and wear face masks. The decision to reopen borders can be attributed to the successful vaccination campaign started in January 2021. President Wavel Ramkalawan mentioned that 70% of its 100,000 population is expected to be vaccinated by mid-March, making Covid-19 less likely to spread among the community. Minister for Foreign Affairs and Tourism, Sylvestre Radegonde assured that the measures to reopen its borders were only announced after the tourism authorities consulted and attained endorsement from the health authorities.

Absolute Share Price Performance, as on 19 March 2021