Bintan – Hotel Market Update
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Bintan Hotel Market Update January 2020 Limited accessibility remains glass ceiling for island’s tourism demand growth Hoteliers pin ambition on new Bintan Hotel Supply by Area* 3% 3% upcoming international airport 7% “Bintan is located in the northwest of Indonesia within 10% 42% close proximity to Singapore. Currently, there are six seaports and one airport (Raja Haji Fisabilillah airport) on the island. Ferries are the primary transportation 35% mode as the airport only serves domestic flights. Bandar Bentan Telani Ferry Terminal draws the highest number of arrivals, which totaled 1.06 million in 2018 (latest available data). Teluk Sebong (Bintan Resorts) Gunung Kijanng Bintan Utara (North Bintan) Bintan Timur (East Bintan) Over 42% of the hotel supply on the island is located Teluk Bintan (Bintan Bay) Toapaya inside the integrated tourism development of Bintan Source: BPS Statistics of Bintan Regency and C9 Hotelworks Market Research Resorts. It has the highest concentration of *Latest available data as of 2018 internationally branded resorts ranging from There is a much delayed new airport located inside midscale to luxury tier. Singapore is the largest Bintan Resorts, that when finally operational, will source market for Bintan, accounting for 36% of the alter the island’s tourism ambition. Targeting total international visitors in 2018. Due to the heavy international flights, the project features a 3,000- reliance on a single market, room night demand meter long runway with capacity of one million peaks during weekends and Singapore public passengers annually. The airport could be a positive holidays. However, occupancy drops significantly on disruptor, the increased connectivity will draw weekdays and effectively caps trading numbers. demand from a wider market.” Bill Barnett, Managing Director, C9 Hotelworks Trends Forward Outlook • Mainland China is the second-largest source • By 2022, there are 1,003 keys are forecasted to market, which accounts for 24% of the total come on stream; while 75% of the incoming hotel number of international visitors. Tour groups are pipeline is concentrated on the upscale tier with the dominant demand segment for Chinese. all having international hotel brands. • Unlike many other island destinations, room • The new Bintan Resorts International Airport is rate variances between weekdays and weekends being developed by Gallant Venture with a total range between 20% to 30% on average. investment budget of USD150 million. • Free independent travelers (FIT’s) are the largest • Aiming to improve the accessibility, a new 7-km market segment on the island with over 50% bridge connecting Bintan and Batam islands is share, followed by wholesale and MICE segments. underway and targeting 2023 completion. TOURISM Demand Indicators As of 2018 (latest available data), Bintan Resorts recorded a total of 1,063,458 passenger arrivals via Bandar Bentan Telani Ferry Terminal, representing an 18.4% year-on-year increase over the previous year. Bintan Resorts Ferry Passenger Arrivals Number of Passengers % 1,300,000 36 1,100,000 30 Compound 900,000 24 annual growth 700,000 18 rate between 500,000 12 2014 and 2018 300,000 6 reflected an 100,000 0 uplift of 18% 2013 2014 2015 2016 2017 2018 Total Annual Growth Rate Source: Bintan Resorts and C9 Hotelworks Market Research Seasonality Number of Passengers 150,000 Seasonal 130,000 trading is 110,000 predictable in 90,000 Bintan, as peak 70,000 months are 50,000 driven by public 30,000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec holidays and sports events 2016 2017 2018 Source: Bintan Resorts and C9 Hotelworks Market Research Top 5 Key International Geographic Source Markets 26% 36% Regional Asian markets 8% dominate 2% 4% 24% tourism demand given the island’s limited Singapore China Japan South Korea India Others accessibility Source: BPS Statistics of Bintan Regency and C9 Hotelworks Market Research 2 C9 Bintan Hotel Market Trends: Jan 2020 HOTEL MARKET Hotel Supply Bintan Resorts area has the highest concentration of international hotel supply on the island with 21% of the existing properties having a brand affiliation. Within Bintan Resorts, 47% of the hotel inventory is in the area of Nirwana Gardens & Kota Sebung. Pasir Panjung area has the highest hotel key counts with large-scale developments which total 706 keys. Accommodation Establishments at Bintan Resorts Number of Keys Number of Properties Currently, 700 12 there are 19 600 10 operating hotels inside 500 8 Bintan Resorts 400 6 with a total of 300 4 1,775 keys 200 2 100 - Nirwana Gardens Laguna Bintan Lagoi Bay Pasir Panjung & Kota Sebung keys Properties Source: C9 Hotelworks Market Research Market-wide Hotel Occupancy % As of 2018, 65 market-wide occupancy 60 averaged 57% 55 with a slight increase from 50 the previous 45 year, reflecting 40 challenging Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec hotel room night demand 2017 2018 Source: BPS Statistics of Bintan Regency & C9 Hotelworks Market Research Hotel Pipeline Hotel Name Location Keys Opening Date Holiday Inn Resort Bintan Lagoi Bay 250 2021 Hotel Indigo Bintan Lagoi Bay 120 2021 Four Points by Sheraton Bintan Lagoi Bay 308 2022 Melia Bintan Sebong Pereh 325 2022 Source: C9 Hotelworks Market Research C9 Bintan Hotel Market Trends: Jan 2020 3 About C9 Hotelworks C9 Hotelworks is an internationally recognized consulting firm with extensive experience in the Asia Pacific region. Its core business focus includes: • Hotel and Resort Development • Asset Management / Ownership Representation • Project Feasibility and Analysis Key competencies include international hotel operator search, selection and contract negotiation, mixed use hotel and residential planning and operation reviews. A wide range of both institutional and private developers and a comprehensive portfolio of completed projects give C9 the skill set and background to focus on key issues, evaluate complex ones and assist clients in achieving solid results. Based in Phuket, Thailand and led by Managing Director Bill Barnett, who has 30 years of experience in Asia Pacific, the firm is well positioned to serve an increasing demanding marketplace. C9 Hotelworks Company Limited 9 Lagoon Road, Cherngtalay, Thalang, Phuket, 83110, Thailand www.c9hotelworks.com [email protected].