PIPELINE : ASIA PACIFIC
ISLAND
HOPPING
Aerial view of Avani Sepang Goldcoast Resort , located in Sepang , Malaysia . Outside of Kuala Lumpur , hotel development in Malaysia is concentrated on the eastern side of the Malay Peninsula .
WHILE CHALLENGES SUCH AS INFRASTRUCTURE MATURITY EXIST , HOTELS IDENTIFIES SIX HOT SOUTHEAST ASIA MARKETS TARGETED FOR GROWTH . by NATHAN GREENHALGH , ASSOCIATE EDITOR
Asia Pacific ’ s economic slowdown is not impeding hotel development in Southeast Asia , especially in hot markets such as Indonesia , Malaysia , Thailand , the Philippines , Myanmar and nearby Sri Lanka . Despite slumping GDP growth and Thailand entering a recession , demand has remained strong with the six countries averaging a 17.6 % year-on-year increase in overnight visitor growth during the first nine months of 2013 , according to UNWTO .
Indonesia has the largest pipeline of the six countries with foreign direct investment in hospitalty exploding , funding the development of primarily economy and midscale hotels . Thailand ’ s pipeline is concentrated on Bangkok and established resort destinations , but developers are also looking at more remote parts of the country . Malaysia is seeing an influx of new supply on the island of Langkawi and in the Iskandar Malaysia development zone . In the Philippines , local developers anticipate a boom in arrivals after Metro Manila ’ s massive casinoresorts enter operation . And after decades of little to no development , Sri Lanka and Myanmar are seeing a steady stream of deals .
The expansion model local players and international brands are using is mostly own-operate or management , although Accor and Wyndham Hotel
Group say Southeast Asia has franchising potential given the demand for limited-service properties .
“ We plan to increase our franchising pace for our budget and economy hotels , as we see huge potential for franchised hotels across Southeast Asia as individuals look for ways to run their hotels better in an increasingly competitive marketplace ,” says Michael Issenberg , chairman and CEO , Accor Asia Pacific .
Infrastructure and government regulatory hurdles remain a challenge in many of these countries , and hotel company executives say finding the right staff is another major challenge considering the scope of development in the region .
www . hotelsmag . com November 2013 HOTELS 61