Industry Overview
Total Page:16
File Type:pdf, Size:1020Kb
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. INDUSTRY OVERVIEW We have extracted and derived the information in the section below, in part, from various 3D-13(i) government or official sources that are publicly available and the HVS Report. See “Sources of information” below. We believe that the sources of this information are appropriate sources for such information and have taken reasonable care in extracting and reproducing such information. We have no reason to believe that such information is false or misleading or that any fact has been omitted that would render such information false or misleading. The information has not been independently verified by us, the Sole Sponsor, the Underwriters and the Sole Lead Manager or any other party involved in the [REDACTED] and no representation is given as to its accuracy. Accordingly, you should not place undue reliance on such information or statistics. SOURCES OF INFORMATION In connection with [REDACTED], we have engaged HVS, an Independent Third Party, to prepare the report titled “Market Research Report Singapore and Bintan” (“HVS Report”) for use in this section. We paid HVS a total of US$48,000 as the fee for preparing and updating the HVS Report. The payment of such amount was not contingent upon our successful Listing or on the results of the HVS Report. About HVS HVS is a global consulting and services organisation founded in 1980 and based in the United States. Through a worldwide network of over 30 offices, HVS provides services in areas including, among others, consulting and valuation, executive search, investment banking, hotel management, shared ownership, parking operations, risk management and property tax. Consulting and valuation services include among others, development feasibility study, property valuation, master plan advisory and strategic consulting, hotel and tourism market study, asset management and hotel operator search and brand selection. Research methodology HVS prepared the HVS Report based on its in-house database, government statistics, industry publications, tourism bureaus and related authorities. HVS also conducted primary research such as site inspection and interviews with hotel management representatives to gather and synthesise market information. Forecasted data was projected on the basis of analysis of Singapore’s and Bintan’s macroeconomic data, historical data of Singapore and Bintan hospitality market and specific industry related drivers. In particular: (i) in arriving at the forecast in hotel room supply in Singapore and Bintan, HVS assumes that industry drivers such as government supports and improvements on infrastructure will ensure sustainable development of the tourism industry in Singapore and Bintan. The total hotel supply increased at CAGR of 5.2% between 2005 and 2013. Singapore hotel supply is estimated to grow at a CAGR of 4.0% from 2014 to 2017. HVS also estimates 1% increase in Singapore hotel supply for 2018. HVS estimates that hotel room supply in Bintan will surge at the rate of 16.1% per annum from 2014 to 2018 which is a notable growth as compared to the CAGR of 2.6% of hotel room supply in Bintan between 2005 and 2013; and —50— THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. INDUSTRY OVERVIEW (ii) HVS estimates that Singapore economies will maintain steady growth between 3.9% to 5.4% per annum across the forecast period from 2014 to 2018 compared to the volatile fluctuations of economic growth ranging from -0.6% to 15.1% over 2005 to 2013. HVS also estimates that Indonesia economies will maintain an annual growth rate of 5.4% to 6.4% from 2014 to 2018 as compared to the 4.6% to 6.5% growth for the previous nine years. Our Directors confirmed that after taking reasonable care, there is no adverse change in the market information since the date of the HVS Report which may qualify, contradict or have an impact on the information in this section. Except as otherwise noted, all of the data and forecast in this section are derived from the HVS Report. See the sub-section headed “Risk factors — Risks relating to statements made in this document — The industry data and forecasts in this document obtained from various government publications have not been independently verified” in this document. SINGAPORE HOTEL INDUSTRY OVERVIEW 3D-13(ii) Macroeconomic indicators Located at the Southern tip of the Malay Peninsula, Singapore is one of the financial and business centres in South East Asia and also one of the major tourist destinations in the Asia Pacific. The graph below sets out the per capita GDP in Singapore from 2005 to 2018: Per capita GDP in Singapore, 2005-2018 US$ (thousand) 80 70 74.8 71.6 60 66.7 62.9 50 58.6 54.8 53.5 52.5 40 46.0 38.1 38.8 30 39.3 33.2 20 29.4 10 0 2005 2006 2007 2008 2009 2011 2010 2012 2013 2015F 2014F 2016F 2017F 2018F Source: Economist Intelligence Unit —51— THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. INDUSTRY OVERVIEW As set out in the above graph, although the pace of expansion of Singapore economy was slowed down since 2011 compared to the robust growth in the previous years, the economy still maintained healthy growth. Tourism market data Number of visitor arrivals The graph below sets out the number of international visitor arrivals to Singapore from 2005 to 2013: International arrivals to Singapore, 2005-2013 Visitors (thousand) 15,568 16,000 14,491 14,000 13,171 11,637 12,000 10,285 9,751 10,116 9,681 10,000 8,943 8,000 6,000 4,000 2,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: STB Total international arrivals to Singapore grew steadily from 2005 to 2013, increasing from approximately 8.9 million in 2005 to approximately 15.6 million in 2013, representing a CAGR of 7.3%. This was primarily due to a combination of factors including the continued effort in creating demand, solid marketing effort in promoting “Uniquely Singapore” by STB, increased business travel in the region and the opening of the two integrated resorts, Marina Bay Sands and Resorts World Sentosa. —52— THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. INDUSTRY OVERVIEW Purpose of visit The graph below sets out a breakdown of international visitor arrivals by purpose of visit in 2012: Visitor arrivals by purpose of visit, 2012 Visitingfriends / relatives 13% Business/Meetings,incentives, 23% conferencesandexhibitions Holiday 37% Others 27% 0105 152025303540 Source: STB Leisure demand remains dominant for Singapore international visitor arrivals. Holiday was the single largest purpose of visit to Singapore in 2012, representing 37% of total international visitors. 23% of travellers are business driven and the improving business environment will likely increase demand for this segment. The figures for international visitor arrivals by purpose of visit in 2013 were not available at the Latest Practicable Date. Visitor arrivals by region The main feeder region to Singapore is Southeast Asia (including Indonesia, Malaysia and other Southeast Asia countries) which accounted for 39.6% of total international visitor arrivals in 2013, followed by North Asia (including China and other North Asia countries) which accounted for 28.9% of total international visitor arrivals in 2013. The main feeder countries to Singapore were Indonesia, China and Malaysia which accounted for 19.8%, 14.6% and 8.2% of total international visitor arrivals in 2013 respectively. —53— THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. INDUSTRY OVERVIEW Tourism receipts Tourism receipts represent expenditure of international inbound visitors which provide an indication of the overall status of the tourism industry. The graph below sets out the total tourism receipts in Singapore from 2005 to 2013: Singapore tourism receipts, 2005-2013 S$ (billion) 25 23.0 23.5 22.3 18.9 20 15.5 14.1 15 12.4 12.6 10.9 10 5 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: STB Singapore’s tourism receipts increased from S$10.9 billion in 2005 to S$23.5 billion in 2013, representing a CAGR of 10.1%. Tourism receipts rebounded to S$18.9 billion in 2010, representing a growth of 50.0% compared to 2009 and further grew by 18.0% to S$22.3 billion in 2011. This increase was mainly attributable to the higher per capita spending by visitors and the increase in number of international visitor arrivals due to improving regional economic sentiments after the 2008 global financial crisis and the opening of the two integrated resorts, being Marina Bay Sands and Resorts World Sentosa. Singapore’s tourism receipts amounted to S$23.5 billion in 2013, representing an increase of approximately 2.2% as compared to 2012 mainly due to the growth in accommodation and sightseeing and entertainment receipts. —54— THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. INDUSTRY OVERVIEW Singapore hotel market Hotel classification Singapore hotels are classified as gazetted and non-gazetted hotels.