Regional tourism executives offer crisis insights

Hospitality and tourism entrepreneurs must adapt quickly to any crisis because their industry can be seriously affected by uncertainty and disruption, say senior regional tourism executives
Bill Heinecke, founder and chairman of Minor International, one of Asia’s biggest hotel operators, said entrepreneurs need to act quickly when unexpected events occur, learning from past disasters such as the 2004 tsunami, 9/11 and the Covid pandemic.
Speaking at the Forbes Global CEO Conference in Bangkok on Thursday, Mr Heinecke said SET-listed Minor raised capital during the pandemic to survive after losing a billion dollars because it estimated the impact would be more persistent than previous crises.
“We anticipated things weren’t going to get better, and they could get worse,” he said. “One thing you don’t ever do as an entrepreneur is run out of money, which could mean game over.”
Mr Heinecke also emphasised the mindset of always being ready to learn, which can translate to how the company can improve its service beyond the level of its competitors.
He said these efforts paid off as Minor is now benefiting from the significant recovery of tourism in Thailand and across the globe.
The company plans to operate 1,000 hotels globally within five years, adding to its presence to new markets such as Japan. Minor now operates more than 560 hotels in 60 countries.
Mr Heinecke said he remains optimistic about the Thai tourism industry, expecting up to 45 million foreign tourists in 2025 thanks to the recovery in flight volume, visa-free programmes and the government’s soft power promotions.
Next year, Minor expects double-digit revenue growth driven by both the hospitality and food businesses.
The company is also planning to launch a new real estate investment trust that includes hotels in the second half of next year, reducing its debt level and lowering its leverage, he said.
Tony Fernandes, chief executive of Capital A, the parent company of AirAsia, said a company succession plan for the next generation of executives to operate the business is a crucial part of entrepreneurship.
He said businesses can prosper if governments facilitate their activities, rather than interfering with the way they grow.
Speaking at the same event, Allan Zeman, chairman of Hong Kong-based Lan Kwai Fong Group, a property developer and operator, said he experienced many changes in recent decades as Hong Kong transferred from British administration to Chinese rule, as well as the severe impact of the pandemic.
“When you face a crisis, you’ve got to keep coming up with something creative,” said Mr Zeman.
He said such creativity drew more than 65,000 people to the nightlife area of Lan Kwai Fong, including 25,000 from the mainland, during a recent Halloween celebration.
Mr Zeman said operating fashion businesses also taught him to quickly adapt to change, watching out for the next trend.