TOGA executives forge links in Shanghai

Australian hotelier and serviced apartment operator Toga has unveiled plans to expand its hospitality business into Asia, while William Han, the new owner of Lindeman Island, will use his Chinese TV stations to attract thousands of tourists to the island off north Queensland's coast.

Toga chairman Allan Vidor and Mr Han were among a delegation of tourism executives in Shanghai this week attempting to forge links with cashed up Chinese entrepreneurs wanting to invest in Australia's $94 billion tourism industry. The delegation also included the wealthy Indonesian Halim brothers, owners of Melbourne's Windsor Hotel, which is about to undergo a $250 million refurbishment and redevelopment.

The delegation was part of a major push by Austrade and Tourism Australia, which this week launched a $250m global advertising campaign in China designed to attract more Chinese tourists to Australia.

But Australia not only wants more Chinese tourists, it wants cashed up Chinese entrepreneurs to invest in Australian hotels and resorts. All up, the federal government has identified $42bn worth of shovel-ready and existing tourism projects to service the expected influx of Asian tourists over the next two decades.

"We have a plan for the next five years to have established (a presence in) Asia," Mr Vidor said in a rare interview in Shanghai this week. "We are working and very much building the customer base here. We will be up here (meeting contacts in Shanghai) a few times a year."

The Toga Group, which owns and operates the Medina, Adina, Travelodge and Vibe Hotels brands, has successfully established a presence in Europe.

Asia will be its next growth area.

But Mr Vidor -- the family is listed in BRW's Rich 200 with a $485m fortune -- concedes it will take at least five years to develop relationships in China.

"We did four years in Europe before we did anything there. It's a long road to building long relationships," he said. "We have set up many appointments, we want to introduce specific hotel projects." Mr Vidor is visiting China with several Toga executives.

Federal Tourism Minister Martin Ferguson and Tourism Australia chairman Geoff Dixon are pushing for new investment in Australia's ageing resorts and hotels, but they concede more could be done by state governments to speed up onerous planning approvals.

Mr Dixon told The Australian that planning processes had become more "transparent" of late.

"I don't think (the problems associated with the development) of Wolgan Valley (by Emirates) would happen again," Mr Dixon said. "It's provided a level of transparency. It's being discussed at a very high level."

Mr Ferguson said if the states could remove the barriers to get an LNG plant developed, "why shouldn't they move them to get resorts or hotels developed".

"All states have dragged the chain in approving projects," Mr Ferguson said.

But at least Western Australia, which has a chronic shortage of hotels, had a "sense of aggression" about getting projects delivered.

"I want competitive tension. Western Australia is trying to free up investment opportunities," Mr Ferguson said.

Meanwhile, Mr Han, chairman of the White Horse Group, said it would take at least two years for his company to formulate plans for Lindeman Island, which he bought recently.

"I will be spending a lot of time to understand the area," Mr Han said. "I will talk to Hayman Island and Hamilton Island to get it to work.

"We will try to bring people from around the world. We will spend time to get it right."

Mr Han said the White Horse Group's Chinese-run Golf Channel, watched by 3 million people, would be used to promote Lindeman Island to the Chinese. "We are not talking about making money, we are more focused on the long-term strategy," he said. "We are very focused on regional development."

Melbourne financier Adam Garrisson of the Oriental Pacific Group was among the attendees in Shanghai this week, as was James Neville Smith of the Castaway Resort and Spa at Mission Beach. Mr Neville Smith is seeking $15m from Chinese investors to help fund the expansion of his north Queensland resort, including the development of conference facilities and 44 extra rooms.

"This destination needs additional inventory, I have to seek capital elsewhere," he said.

Mr Garrisson, a former owner of the Windsor Hotel, was also meeting with executives in China this week. "I think our links with China are important, I am here to meet people with a view to cementing long-term relationships I would like to have in the future," he said.

Developers from Victoria's Mornington Peninsula were seeking funding for a range of projects, including a winery estate at Dromana, on the Mornington Peninsula.

Tourism Australia managing director Andrew McEvoy said it was possible for governments to step in and speed up development. He said the South Australian government had backed the development of James and Hayley Baillie's Southern Ocean Lodge on Kangaroo Island.

It was "18 months from concept to opening", he said.

"Development of hotels at the Perth Waterfront is generating a lot of interest," he added.

Sources attending the private briefings said Chinese investors had expressed interest in the Australian projects but wanted to take a long-term position.

Source: The Australian, 7 June 2012