Travel & Tourism

Chinese tourists’ reverse-Marco Polo is no fluke

19 Aug 2019

The flow of visitors from the Middle Kingdom to Italy has jumped. That is the reward for becoming the People’s Republic’s new best European friend. The Communist party uses its $315 bln outbound tourism market to exercise soft power, helping friends and punishing foes.

Cathay Pacific yields to its Beijing co-pilot

12 Aug 2019

The Hong Kong carrier will allow Chinese authorities to vet staff flying to and over the mainland, as anti-government protests heat up at home. “Overly radical" employees will be kept away. Local roots and links leave Cathay and parent Swire vulnerable, and with limited options.

Brexit casts a double cloud over IAG

2 Aug 2019

The British Airways owner’s top and bottom lines are growing, a rarity among ravaged European carriers. Yet the risk of Britain crashing out of the EU weighs on its valuation. IAG can’t reduce its dependence on UK travellers, but more clarity on post-Brexit ownership would help.

Elliott’s Saga raid rests on insurance revival

17 Jul 2019

The activist has boarded the UK group which flogs cruises and cover to the over-50s. A breakup may rejuvenate shares which have halved since early April, but a turnaround depends on its biggest unit. At least the investor can steer the choice of CEO Lance Batchelor’s successor.

Thomas Cook wipeout forces Fosun to double down

12 Jul 2019

The ailing UK tour operator is finalising a 750 mln pound recapitalisation which would give creditors control of the airline and the Chinese group its travel unit. That allows Fosun to salvage its 250 mln pound equity stake. Other shareholders are likely to be left with nothing.

Macau’s Las Vegas ambitions face reality check

29 May 2019

Millions of Chinese visitors are swarming the tiny territory across a new bridge. The $38 bln gaming hub doesn’t seem to know what to do with them, and is mulling a tourist tax to reduce congestion. The city’s Nevada-inspired economic diversification strategy is due a rethink.

Jaunts abroad offer useful cover for China’s Ctrip

21 May 2019

The $20 bln travel giant, owner of Skyscanner, has become a top shareholder in India's MakeMyTrip. Efforts at diversification are prudent: rivals are proliferating at home, and the economy is cooling. There's protection too, if Beijing pulls tourists into a worsening trade war.

Saga is a wake-up call for UK insurers

4 Apr 2019

Shares in the company that focuses on baby boomers fell 38 percent after it issued a profit warning and cut its dividend. Data protection laws and the UK financial watchdog’s keener focus on prices that are causing problems for its insurance business will also hurt rivals.

Brexit gives easyJet handy excuse for summer blues

1 Apr 2019

The low-cost airline blamed political turbulence in Britain for weak passenger demand. Anaemic euro zone growth is probably a bigger culprit. With fuel costs rising and air-traffic disruption still likely, easyJet will struggle to repeat last year’s high-flying performance.

Etihad is strapped in too tightly at Jet Airways

19 Mar 2019

The ailing $400 mln Indian carrier has stopped flights to Abu Dhabi, the hub of its 24 pct shareholder. Even with some planes grounded, Jet may be trying to strong-arm support for a restructuring. It’s a harsh reminder that Etihad has more to lose than just its equity investment.

Cambodia’s casino king faces new poker hands

11 Mar 2019

Malaysian tycoon Chen Lip Keong is enjoying an extraordinary monopoly in Phnom Penh: his $6 billion flagship group, NagaCorp, grew net profit by more than 50 percent last year. But new rules and an influx of Chinese tourists will inspire upstarts to try their luck too.

Macau’s festive blowout defies economic worries

27 Feb 2019

The $38 bln Chinese gambling hub looks resilient despite concerns about slowing consumption onshore. Visits rose by 27 pct over the Lunar New Year holiday; quarterly results at Melco and MGM also inspire optimism. Efforts to attract the up-and-coming middle class are paying off.

A plucky local upstart will take on Macau’s moguls

31 Dec 2018

Regulators in the world’s largest gambling hub could allow new players onto the casino floor when licenses expire in 2020. With frayed U.S.-China relations dealing American giants Sands and Wynn a weak hand, homegrown names like Suncity and Golden Dragon will try their luck.

Drones prove disruptive capacity – in a bad way

20 Dec 2018

Rogue devices forced London's Gatwick airport to close, grounding flights and stranding thousands of passengers the week before Christmas. Even known risks with new technology - already highlighted by UK aviation authorities - can be hard to manage.

Wanda takes a deft detour into Party nostalgia

18 Dec 2018

The property conglomerate said it will build a $1.7 bln “red tourism” destination, even as it sells off other theme parks. Wang Jianlin’s outfit may be shedding assets to pay back jittery creditors, but officials are the constituency he really needs to placate.

Club Med embarks on overheated holiday escape

13 Dec 2018

The vacation resorts arm of Chinese conglomerate Fosun priced its IPO at the bottom end of the indicated range. A $2.4 bln market cap, however, imputes a multiple on par with its most richly valued peers. Sluggish tourism trends could leave optimistic investors scorched.

Buyouts are the new activism at Elliott

10 Dec 2018

Months after putting it in play, Paul Singer’s hedge fund is joining a $4.4 bln buyout of Travelport. Public investors don’t value the e-commerce also-ran, and getting margins near leader Amadeus may reap big gains. It’s a new way for Elliott to put its money where its mouth is.

Marriott breach invites data cops to check in

30 Nov 2018

Another 500 mln people now have to worry about identity theft. Hanging onto personal data, protecting it ineffectively and disclosing breaches only slowly are habits in corporate America. It’s not only Google, Facebook and their ilk that merit privacy rules more like Europe’s.

Global hotel chains get Kentucky fried in China

19 Nov 2018

A video showing staff at Marriott, Hilton and other chains cleaning cups with dirty towels has gone viral, forcing local managers to apologise. As Yum Brands found, Chinese smear campaigns can become big business headaches. An escalating trade war only increases the stakes.

M&A can bring relief to Asia’s crowded skies

19 Nov 2018

Too many carriers, with too many planes, offering cheap fares have left the industry on its knees, and put price controls back on the agenda. Consolidation is a better fix. With Indonesia’s Garuda taking over a rival and India’s Jet Airways in play, a turning point may be near.