Analysis for Asia
Inflation rises to levels not seen for decades, but China and Japan are laggards in the global surge
Inflation has risen to levels not seen for decades, and this in a rather synchronised and global fashion, pushed up notably by higher energy and food prices. The result is a widespread tightening of monetary policy with central banks taking action largely in unison.
Consumers now face “the double whammy of weakening purchasing power and higher interest payments on mortgages and credit cards,” warns airline trade body International Air Transport Association (IATA), which it says, “could spell trouble” for the aviation and travel sectors.
Marriott International has confirmed two key new developments among its portfolio with an agreement with East Japan Railway Company to bring the JW Marriott brand to Tokyo, Japan, and the opening of AC Hotel by Marriott Seoul Gangnam, marking the brand’s debut in South Korea.
The huge size of China’s domestic market and the fast-expanding outbound international flows pre-pandemic meant that when it comes to travel, when China sneezes the rest of the world catches a cold. Now, as parts of Asia start following the rest of the world out of the border restrictions that weighed heavily on international travel over the past couple of years, China’s strong preventive action to continue to limit the spread of COVID-19 nationally, still limits regional and global recovery figures.
Serviced apartment group Ascott Limited has set an ambitious target to open 150 additional properties under its co-living lyf brand by 2030, adding over 30,000 units to its portfolio before the end of the decade. The brand, pronounced ‘life’ and standing for ‘live your freedom’ is a lodging concept designed for next-generation guests with apartments, social spaces and experiential programmes designed for guests to “forge connections and nurture a strong sense of community”.
Almost all countries across Southeast Asia have now started to remove their travel restrictions and are reopening their borders to international arrivals. This marks an important step in the recovery process and in particular rejuvenating economies that rely on visitor expenditure. Data from Travelport for 1Q 2022 clearly shows the easing of restrictions is influencing international demand for travel to Southeast Asia.
Accor is advancing through 2022 with a continued focus on expanding its presence across Greater China, offering more hotels to travellers and loyalty members than ever before, across recognised brands such as Raffles, Fairmont, Sofitel, MGallery, Pullman, Grand Mercure, Novotel, Mercure, and ibis. Accor’s new project signings in China reached an all-time high in 2021 – leading to more than 520 hotels now in operation and an additional 350 under development.
The travel, tourism and aviation industries in the across the globe witness policy and upper level changes on a daily basis. It is important to not only keep tabs of these organisations direction, but to also monitor changes in executive branches to see the wider picture of the travel market. CTC – Corporate Travel Community aims to keep you informed of these movements each month, with a full wrap of the key changes across regional markets, while also featuring key appointments announced for the month.
Here are the key executive changes for Mar-2022:
Restrictive travel corridors was as good is it got for those moving around Asia Pacific during much of the COVID-19 pandemic and has meant international travel in Asia-Pacific has been trailing the rest of the world’s recovery path. Now many Southeast Asian countries are cautiously reopening, but there North Asian counterparts are still largely restricting entry highlighting the need to remain cautious about recovery.
Hyatt Hotels Corporation and ANTA Sports Products Co have announced plans for the first FILA-branded hotel in Shanghai – FILA HOUSE Shanghai. The hotel will make its mark on the global stage as the inaugural FILA-branded hotel in the world, joining the JdV by Hyatt brand.
With the strong financial improvements delivered in 2021, including more than doubling operating profit from reportable segments and substantially reducing its net debt, IHG Hotels & Resorts (IHG) has started 2022 further growing its portfolio across Asia Pacific with new openings across multiple brands.