Multinational hospitality group IHG plans to aggressively expand in Thailand’s luxury premium hospitality sector, aiming to capitalise on the country’s tourism recovery.
Rajit Sukumaran, IHG’s managing director for Southeast Asia and Korea, said during a media group interview in Bangkok on Tuesday, that Thailand’s tourism industry is very positive, with more international tourists expressing a desire to visit Thailand, particularly Bangkok, Phuket, Pattaya, and Samui Island, which are the top four destinations that IHG’s customers search for on their website.
The growth rate of IHG hotels in Thailand in the first quarter of this year was 61 per cent compared to the same quarter last year, and 82 per cent compared to the same quarter in 2019.
This growth trend reflects the gradual recovery of the country’s tourism. More tourists will visit Thailand in the second half of this year now that the government has lifted the Thailand Pass measure to facilitate entry.
Moreover, the recent success of their first rebranding of Sindhorn Midtown Hotel Bangkok marked the entry of Vignette Collection in the country, Sukumaran said.
IHG plans to add two more hotels to this collection with The Aquatique Pattaya, Thailand and Bangkok Chinatown in the next five years, he added.
Ranging from heritage hotels to idyllic resorts, Vignette Collection includes luxury hotels in vibrant destinations.
Sukumaran stated that the demand for premium hotels and resorts is increasing and tourists are looking for not only comfort but also quality and safe hygiene.
Therefore, IHG Hotels & Resorts is partnering local hotel owners and offering them world-class independent hotels with the opportunity to retain their distinctive identity, while benefiting from IHG’s global scale, luxury and lifestyle expertise, and powerful IHG One Rewards loyalty programme, he said.
He explained that the company’s great tradition in Thailand and long-term commitment to the country means it is a key element in IHG’s Southeast Asia growth strategy.
Previously, the group used Thailand to launch new brands in Southeast Asia, such as Holiday Inn Express, Hotel Indigo, Staybridge Suites, Kimpton Hotels & Restaurants, and now Vignette Collection.
“We continue to grow in Thailand, and plan to double our estate there with 35 hotels in the pipeline,” said Sukumaran.
This ambition will be supported by Vignette Collection. IHG’s 17th and newest brand is fully embracing its commitment to responsible business and more than 100 properties globally are anticipated to join over the next 10 years, he said.
IHG continues to enjoy a strong 2022 in Thailand, which included the signing of Kimpton Hua Hin, the fourth Kimpton in the Kingdom. Upcoming openings include InterContinental Khao Yai Resort, Staybridge Suites Bangkok Sukhumvit and Holiday Inn Resort Samui Bophut Beach, as the company looks to double its estate across all brands by 2026.
Vaccine effectiveness similar across all vaccines studied
AstraZeneca’s Vaxzevria (ChAdOx1-S [Recombinant]) was effective at preventing COVID-19 infections due to Omicron when used as a fourth dose booster, according to new data from Faculty of Public Health, Chiang Mai University in collaboration with Chiang Mai Provincial Public Health Office.
In the real-world evidence study, Vaxzevria showed vaccine effectiveness (VE) of 73% (95% Confidence Interval [CI] 48-89%) against the highly transmissible Omicron variant when a fourth dose was given on top of any previous primary or booster vaccine.1 According to the study authors, these are the first known data assessing the effectiveness of a mixed (heterologous) four-dose COVID-19 vaccine schedule.
The findings were published as a preprint in Research Square.
The data showed that a fourth dose of any of the COVID-19 vaccines studied, including Vaxzevria, were 75% effective in preventing Omicron infection (VE 75%, 95% CI 71-80%). The VE of 73% for Vaxzevria was similar to that seen with mRNA vaccines which showed VE of 71% (VE 71%, 95% CI 59-79%). VE was adjusted for age, gender, calendar time and preceding vaccine series type.
Lead author Emeritus Professor Suwat Chariyalertsak, MD, Dr.PH, Faculty of Public Health, Chiang Mai University, Thailand, said: “This study provides much-needed data showing a fourth dose of any COVID-19 vaccine can help prevent infection due to the highly contagious Omicron variant. Providing continuous protection with boosting is especially important for at-risk groups such as the elderly and those living with chronic health conditions. The data also support the effectiveness of heterologous, or ‘mix and match’, vaccination schedules which may help ongoing efforts to increase population coverage of booster doses.”
John Perez, Senior Vice President, Head of Late Development, Vaccines & Immune Therapies, AstraZeneca, added: “These new data further add to our understanding of the importance of booster doses to protect against COVID-19 infection in an evolving variant landscape. Building on Vaxzevria’s effectiveness in preventing severe disease and death, we now know that Vaxzevria can help prevent Omicron-related infections when given as a fourth dose, with greater protection against infection than was seen following a third dose.”
Additionally, a preliminary analysis of hospital data reports VE against severe COVID-19 (requiring invasive mechanical ventilation), and death during the Omicron wave in February and March of 2022. Across all age groups studied, a three-dose mixed schedule provided 98% protection against severe infection or COVID-19-related death. Following a fourth dose booster, the authors observed only a single death, in a person with comorbidities, suggesting very high effectiveness. Analysis of this dataset is ongoing and will be reported at a later date.
The study reported real-world VE of Vaxzevria, CoronaVac and mRNA vaccines utilising an active surveillance network which enabled comparisons of the same patient profiles across both Delta-predominant and Omicron-predominant periods.
To date, over 3 billion doses of Vaxzevria have been released, which based on model outcomes is estimated to have helped save over 6 million lives between 08 December 2020 and 08 December 2021.
On July 18, 2022, at Bitkub M Social venue, EmQuartier department store, Bitkub Online Co., Ltd., the service provider behind the Bitkub Exchange, Thailand’s no.1 cryptocurrency exchange, and Bitkub Labs Co., Ltd., the company behind Bitkub Academy, a central hub for education knowledge in digital assets and investments, are announcing a marketing partnership with Circle, the creator of USDC and a globally-recognized creator of financial transactions on the blockchain network, to establish a marketing partnership, events, and activities to promote educational knowledge behind stablecoins and the USDC token.
USDC or the USD Coin is an ERC-20 standard token situated on the Ethereum blockchain Listing on the Bitkub Exchange and was co-created by Circle. USDC is also supported on 8 other blockchains: Algorand, Avalanche, Flow, Hedera, Polygon, Solana, Stellar, and TRON, with more blockchains to come.
USDC is classified as a stablecoin or a digital currency with stable value due to its value peg to the U.S. dollar in a 1 USD to 1 USDC ratio, while also enabling a wide range of utilities within Ethereum’s ecosystem. USDC is distinct in its transparency, wherein its peg to the U.S. dollar is maintained through the preservation of U.S. dollars within its reserve, managed by leading U.S. financial institutions and custodians within the U.S. regulatory perimeter. Additionally, USDC is known for its consistent financial audits by Grant Thornton LLP with monthly audit and statistic reports.
The partnership commenced with the mutual objective in disseminating knowledge behind investments in digital assets, blockchain technology, as well as understanding behind stablecoins and USDC for Thai investors for safe and sustainable adoption. USDC is a stablecoin which worldwide recognized as a transparent and stable token due to its support by various noteworthy conglomerates and financial institutions worldwide, aligning with the Bitkub group’s vision in bridging the masses to the digital financial world safely and sustainably.
Sugrit Phutaviriya, Chief Executive Officer of Bitkub Labs provided insights towards the partnership: “This partnership with Circle is an integral step forward for us in creating awareness behind technology and educational knowledge that will be developed through our Learn & Earn educational model. The model is aimed to initiate interest and enhance access to knowledge by enabling users to study, take examinations, and receive coin rewards in exchange for their dedication. This can be taken into account as an intrinsic approach that will instill pride for hardworking learners. Bitkub is overwhelmingly excited for what’s ahead in this partnership and believe that with the aid from Circle, both parties will be able to push educational investments in a sustainable and widespread manner.”
Jeremy Allaire, Circle Co-Founder and Chief Executive Officer added: “As a company, it is important to us that we partner with strong actors across the world who have strong reputations, follow regulatory guidance, and work with the broader global community for good. We had the chance to meet the Bitkub team earlier this year and found that we shared a vision about the possible future for cryptocurrency and blockchain. We’re excited to build a partnership here in Thailand with Bitkub and Circle and drive new and innovative movements together.”
The stablecoin USDC-focused educational and awareness-aimed event enabled attendance for the chance to win USDC reward tokens in from a total prize pool of 250 USDC for 20 winners, with a total value of over 8,000 THB, along with an additional 250 USDC for 80 participants who had attended through Bitkub’s social media livestreams. Those interested in participating in upcoming events under the Bitkub and Circle partnership can tune in to details broadcasted through the Bitkub Official and Bitkub Academy Facebook pages.
Siam Piwat, a leading real estate and retail developer, the owner and operator of world-class projects, such as Siam Paragon, Siam Center, and Siam Discovery, and a joint venture partner of ICONSIAM and Siam Premium Outlets Bangkok, is offering an opportunity for investors to take part in its success across the past 63 years for the first time ever by issuing perpetual bonds. With an estimated interest rate in a range of 5.25%-5.50% per annum in the first five years, paid out on a quarterly basis, the perpetual bonds have been assigned an investment grade rating, reflecting the group’s strong growth potential.
Ms. Chadatip Chutrakul, Chief Executive Officer of Siam Piwat Group, stated that Siam Piwat has continuously posted strong growth over the past 63 years of its operations and established a robust high-spending customer base both domestically and internationally. Every project of Siam Piwat has achieved tremendous business success and garnered extensive world-class accolades that it has gained respect and acceptance among business partners and leading international organizations. While it has never offered investors opportunities to take part in its businesses thus far, Siam Piwat is now driving its strategies to build an ecosystem by creating shared value with business partners across various dimensions and it will for the first time ever engage high net worth investors to take part in Siam Piwat’s businesses, which have been growing with stability and sustainability.
As for the use of proceeds from this issuance, Siam Piwat will use it to pay for the leasehold on land and to improve all of its shopping centers to strengthen its core businesses and better cater to lifestyles of the future, as well as to expand towards various businesses in the new economy, while creating digital platforms that will connect its core businesses to new endeavors in collaboration with partners in its ecosystem. In addition, Siam Piwat aims to leverage its expertise and experience in the management of shopping centers, office buildings, and residential buildings to further expand its real estate service business in the next 1-3 years.
Siam Piwat is preparing to issue perpetual bonds no. 1/2022, payable upon dissolution, with the issuer’s right to early redemption and unconditional interest deferral with a call option from the fifth year onwards. The interest rate will be in range of 5.25%-5.50% per annum in the first five years, adjusted every five years based on five-year government bond yields, and paid on a quarterly basis. The perpetual bonds will be offered to institutional and/or high net worth investors, with the minimum subscription amount of THB 1,000,000 or a multiple of THB 1,000,000. Siam Commercial Bank, Thanachart Securities Plc., KGI Securities (Thailand) Plc., Asia Plus Securities Co., Ltd., and IV Global Securities Plc. have been appointed as the underwriters of the debentures, and the offering is expected to take place in 1st week of August this year.
Siam Piwat was assigned a company rating of “A-“ with a “stable” outlook, and the perpetual bonds were rated “BBB” with a “stable” outlook by Tris Rating Company Limited as of June 30, 2022. The investment grade ratings reflect Siam Piwat Group’s reliability, potential and strength as a world-class real estate and retail developer. At present, Siam Piwat has a total of 47 subsidiaries across seven core business groups, consisting of the following:
1) Shopping centers and office buildings: Siam Piwat is committed to developing world-class projects that epitomize design, construction, and management excellence, such as Siam Center, Siam Discovery, Siam Piwat Tower, Siam Paragon, ICONSIAM, and Siam Premium Outlets Bangkok. All of them have won top awards across various categories in numerous global award programs organized by prominent international associations and organizations and contributed to Thailand’s reputation as all-time favorite destinations for visitors across the globe.
2) Department stores: Siam Piwat has embarked on joint ventures with experienced companies in Thailand and overseas to operate Paragon Department Store at Siam Paragon and Siam Takashimaya at ICONSIAM, the latter of which is a joint venture with Takashimaya, Japan’s premium department store, and is Takashimaya’s first-ever branch in Thailand.
3) Convention centers and exhibition halls: Siam Piwat’s convention centers and exhibition halls, namely Royal Paragon Hall, a popular venue of choice for important events for government agencies and private businesses in Thailand, and True Icon Hall at ICONSIAM, have placed themselves in the forefront of Thailand’s MICE industries.
4) Digital platforms for offline-online customer experience integration: Siam Piwat has developed digital platforms to accommodate technological advances and digital business expansion as well as to enhance the competitiveness of its businesses. In late 2021, Siam Piwat launched its latest digital platform ONESIAM SuperApp, which integrates offline and online businesses into a business ecosystem connecting powerful partners.
5) Facility management: Siam Piwat provides management services for mixed-use complexes, including shopping centers, office buildings, and residential buildings, under the supervision of a team of professionals with extensive experience in building management.
6) Marketing communication: This business group provides comprehensive marketing management services to retailers and real estate projects in Siam Piwat Group.
7) Retail Business: To support and elevate the capabilities of SMEs at Sook Siam, ICONCRAFT and other retail brands in Siam Piwat Group. Independent business owners, people with disabilities, and the underprivileged are given spaces to showcase local products from 77 provinces across Thailand. We also expand businesses overseas in the form of franchise to introduce Thai products to wider consumer bases. This is in line with Siam Piwat’s vision to co-create shared value with the concept of ESG, encompassing the general public, communities, society, and the environment in order to ensure sustainable mutual growth.
Recognized for its ability to maintain its leading position in high-spending market and its vision to foster a distinctive identity in the shopping center and retail industries, Siam Piwat has a strong track record in marketing and financial status. In addition, it has put in place a stringent policy to maintain the debt-to-equity ratio at a low level. As of December 31, 2021, the ratio was at 0.99 time (as shown in the audited financial statements).
For more information, please contact the underwriters: Siam Commercial Bank Plc, Tel. 02-777-6784; Thanachart Securities Plc., Tel. 02-779-9000; KGI Securities (Thailand) Plc., Tel. 02-658-8951; Asia Plus Securities Co., Ltd., Tel. 02-680-4004; and IV Global Securities Plc, Tel. 02-658-5788.
Thai businesses operating in Myanmar have been advised to seek funding sources in Thailand or other countries after the Central Bank of Myanmar (CBM) suspended loan repayment in foreign currencies.
The Department of International Trade Promotion (DITP) director-general Phusit Rattanakul Seriroengrit said on Tuesday that CBM asked commercial banks across the country on July 13 to suspend loan repayments in foreign currencies to shore up the weakening kyat.
This move would affect foreign companies who operate in Myanmar as they can no longer repay debts with foreign currencies, he added.
“Thai businesses who operate in Myanmar and borrow in foreign currencies must seek funding sources in Thailand or other countries to prevent defaulting on their debt repayments,” he said.
Phusit Rattanakul Seriroengrit
He added that DITP’s international trade office in Yangon is cooperating with commercial banks in Thailand to grant loans for Thai businesses in Myanmar.
Thailand will target a whopping 2.38 trillion baht in revenue from tourists next year – or 80 per cent of the 3 trillion baht earned pre-Covid in 2019.
The bait for foreign tourists will be “reunions” in Thailand as well as “meaningful travel” (eco trips focused on sustainability), TAT governor Yuthasak Supasorn said on Monday.
Yuthasak was launching the “Visit Thailand Year 2022-2023: Amazing New Chapters” campaign aimed at luring back foreigners after two years at home during Covid.
The campaign is designed to restore Thailand to the top five nations with highest revenue from foreign tourists, Yuthasak said. The Kingdom ranked fourth on the list before Covid struck, the governor added.
TAT expects revenue from both domestic and foreign tourists to total between 1.25 trillion and 2.38 trillion baht in 2023, with a median of 1.73 trillion baht.
The TAT forecasts full recovery to pre-Covid levels in 2024.
Yuthasak expects between 11 million and 30 million foreign tourists to visit Thailand next year, generating revenue of 580 billion-1.5 trillion baht.
“But if the Chinese government allows its citizens to travel outside the country, the number of foreign arrivals will definitely reach 30 million next year,“ he added.
He said the TAT is targeting high-spending tourists from all regions throughout the year.
Thailand will tap new markets such as Saudi Arabia, Qatar, Oman and other Middle East countries, while targeting new cities in current markets such as the United States.
TAT expects foreign tourists to spend less money next year due to inflation and Russia’s war in Ukraine. It forecasts average spending of 50,000-54,000 baht per trip, compared with 77,000 baht in the first quarter this year.
However, Yuthasak said the weaker baht would boost foreign tourists’ spending power and encourage them to visit Thailand.
Tourist arrivals so far this year total 2.7 million but that figure is expected to rise to 10 million by year-end, the governor said.
However, the TAT has lowered its forecast of revenue from foreign tourists in 2022 from Bt1.5 trillion to Bt1.2 trillion as the global economic downturn has affected spending.
Meanwhile trips by tourists from nearby countries such as Malaysia lasted an average of only two days, compared with the average 10-14 days for tourists from further afield.
“So, the number of foreign tourists will hit the target in 2022 but the revenue goal of Bt1.5 trillion will not be met,” Yuthasak said.
The TAT forecasts 117 million-135 million domestic travellers next year, generating between 670 billion to 880 billion in revenue from an average of 4,200-4,800 baht per trip. The campaign “Thais can visit amazing Thailand 365 Days” is being launched to boost domestic travel.
The price of assorted eggs at farms will be increased by 10-20 satang apiece to 3.40 baht apiece from Wednesday, Thailand’s Layer Farmer Association said on Tuesday.
Meanwhile the association president, Manoch Chutubtim, has informed layer poultry farmers nationwide via Line application that farmers are suffering from rising production cost, such as animal feed, labour and electricity, since the beginning of this year.
He said the price of eggs is currently volatile due to conflict between related government agencies and retailers.
“Hence, farmers must adjust their methods of raising laying hens to coincide with the raising period,” he said.
Manoch Chutubtim
He also expected the price of eggs to rise next week depending on the market mechanism.
According to the website www.rachakaikai.com, the price of eggs as of Tuesday are as follow:
The baht opened at 36.68 to the US dollar on Tuesday, weakening from Monday’s close of 36.60.
The currency is expected to move between 36.60 and 36.75 during the day, predicted Krungthai Bank market strategist Poon Panichpibool.
He reckoned that the baht is likely to fluctuate and weaken to test its resistance level from 36.70 to 36.80 to the greenback, which is strengthening due to concerns over economic slowdown and worse-than-expected performance of listed companies.
Also, investors believe the US Federal Reserve may push the interest rate up by a fair bit.
Poon also warned investors to beware of China enforcing strict lockdown measures and investors’ concerns about the Covid-19 situation in Thailand. He said these factors may affect foreign transactions in the short term.
He advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
Flights in and out of Thailand should gradually rise and arrive at pre-pandemic levels by the fourth quarter of this year, the Aeronautical Radio of Thailand (AeroThai) said on Sunday.
Nopasit Chakphitak, AeroThai president, said the increase in flights should start this month, thanks to the government’s move to ease Covid-related restrictions and entry measures on July 1.
He said July should see 1,437 flights taking off and landing daily, compared to 1,374 in June. He added that the daily flights should rise to 1,480 during the July 13-17 and July 28-31 long holidays.
“We expect to see good signs of recovery in July and August,” he said.
However, he said there will be more domestic flights than international ones because each country’s Covid-19 situation and travel restrictions are different.
“If the government’s plan to reopen the country goes smoothly, then Thailand should see 430,000 flights this year, up 41 per cent compared to last year,” he added.
Meanwhile, the Civil Aviation Authority of Thailand sees three scenarios in the recovery of the country’s aviation industry:
• If the Covid-19 situation improves and vaccines are widely distributed, the number of local and international passengers should reach 68.26 million and 30.68 million, respectively.
• If Asian countries like China, India, South Korea and Japan continue maintaining travel restrictions, the number of domestic and international passengers this year will come in at 58.95 million and 22.50 million, respectively.
• If the Covid-19 pandemic continues, but some potential markets show signs of recovery, then the number of domestic and international passengers this year will come in at 58.95 million and 15.53 million, respectively.
The baht opened at 36.58 to the US dollar on Monday, strengthening from Friday’s close of 36.61.
The Thai currency is expected to move between 36.50 and 36.70 against the greenback during the day and between 36.30 and 36.90 during the week, Krungthai market strategist Poon Panichpibool predicted.
Poon believes the baht might reach its weakest point, but should not pass 37 to the dollar unless China reinforces new lockdown measures.
The weakening of the baht may also slow down because foreign investors are buying Thai stocks during the dip and some are speculating that the baht will strengthen as the tourism sector’s recovery is better than expected.
Poon expects the dollar to strengthen at the beginning of the week, especially if the market is disappointed with business reports and shifts to a risk-off state.
However, the dollar might fluctuate and weaken if the European Central Bank increases the interest rate and the Purchasing Managers’ Index is worse than expected.
Phusit Rattanakul Seriroengrit
Manoch Chutubtim
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