HVS Asia Pacific Hospitality Newsletter - Week Ending 22 May 2020
Led by Japan-based East Japan Railway Company and Tokyo Metro and developer, Tokyu Land Corporation, with support from the local government, Shibuya has entered the third and final stage of an urban development plan that aims to transform the Tokyo district into a modern centre for business and entertainment by 2027. In 2019, the second phase of the project was completed with the opening of three new complexes: 1) 230-metre tall Shibuya Scramble Square: tallest building in Shibuya, houses Japan's largest rooftop observatory and has more than 200 outlets; 2) Shibuya Fukuras: one-stop-shop for international visitors which houses an art centre, a bus terminal serving Haneda and Narita airports, a tourist information centre, luggage storage and delivery, and foreign currency exchange;.and 3) Shibuya Parco: comprises a wide range of shops and a 636-pax theatre. The 2.6-hectare Shibuya Station Sakuragaoka East District Redevelopment is anticipated to complete in late 2023. Slated to complete in 2027, the Central and West Buildings of Shibuya Station will coincide with the opening of the maglev service that will connect Tokyo and Nagoya in 40 minutes, reducing travelling time by 50 minutes.
Tourism Authority of Thailand ("TAT") has announced a new tourism campaign, "Amazing Trusted Thailand", to rebrand tourism in Thailand post-COVID 19. This will feature three combinations of new and old tourism concepts, including an effective and recognised public health system, unique gastronomy and culture, natural beauty and Thai people. The campaign aims at selected destinations that can guarantee health and safety standard for both tourists and locals. TAT is planning to match foreign tourists from countries that were removed from "Disease-Infected Zones for Covid-19" with provinces in Thailand that never reported infection case or have not reported a new case in the past 28 days. TAT is also targeting high-end foreign tourists from Europe and Asia Pacific region to visit Thailand under a quota. These tourists will not be subjected to 14-day quarantine measures but will be requested to provide health certification, fit-to-fly certificates, and buy health insurance before visiting Thailand. The plan will require THB10-20 billion from the THB400 billion economic rehabilitation projects budget. Currently, TAT is planning to propose the plan in the cabinet meeting next week.
The New Zealand government has allocated NZD400 million (USD244 million) as part of its Budget 2020 for a targeted Tourism Recovery Fund. The Tourism Recovery Fund will be comprised of two parts, led by the Tourism Transition Programme, which will help guide businesses toward business sustainability, whether that be adjusting operations to suit the domestic and Trans-Tasman market specifically, to phase in a gradual shutdown or to adapt the business in other ways. Furthermore, the Strategic Tourism Assets Protection Program
will work with individual businesses which have already exhausted their own private funding options to design a bespoke solution for their needs. Other aid includes extension of wage subsidies, setup of recovery task forces, and channels to provide advices to tourism businesses through the COVID-19 period. Tourism New Zealand will retain its full budget for ongoing promotion of the destination in key domestic markets, with allocation for promotion in Australia. A NZD1.1 billion investment in the Department of Conservation will see 11,000 regional environment jobs created, which Tourism Industry Aotearoa ("TIA") says will provide a lifeline to those employees in tourism who have now lost their jobs due to the pandemic.
On 8 May 2020, construction of facilities for ferry services on the first Can Gio-Vung Tau sea route began. The sea route will connect Ho Chi Minh ("HCM") City's outlying Can Gio District and Vung Tau City in the coastal southern province of Ba Ria-Vung Tau. Slated to be completed on 2 September 2020, the new ferry services are anticipated to boost tourism, contribute socio-economic development and enable smoother connections between HCM City and neighbouring provinces and cities. The sea route will shorten the travel time between both tourist destinations from 3.5 hours to 30 minutes as compared to road travel.
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