Chairman's Message
DEAR SHAREHOLDERS
I am pleased to present to you the annual report for Heeton Holdings Limited for the financial year ended 31 December 2024 (“FY2024”).
FY2024 REVIEW
Our three businesses, which comprise hospitality, property investment and property development, have demonstrated resilience and displayed a commendable performance despite persistent inflation, high interest rates, and weakening economies all contributed to a challenging macroeconomic environment for FY2024. The global tourism recovery from the COVID-19 pandemic continues strongly, and our hospitality markets in the UK, Thailand, and Japan have posted growth. The UK had an estimated 41.2 million visitors in 2024, an 8.4% increase from 38 million visitors in 2023. Thailand had 35 million tourist arrivals in 2024, a 24% jump from the 28.15 million visitors in 2023. Japan saw 36.8 million tourist arrivals in 2024, a huge 47.2% jump from the 25 million visitors in 2023, and topping 2019’s record of nearly 32 million.
In addition, we achieved a milestone in September 2024 with our first hotel purchase in Singapore as part of a consortium, which has rebranded to “Dorsett Changi City Singapore”. Singapore’s tourism industry is booming, led by 3.08 million Chinese tourists, 2.49 million Indonesian tourists, and 1.20 million Indian tourists in 2024. The Singapore Tourism Board estimates tourism receipts in 2024 to hit a record high of around S$29 billion, exceeding the previous record of S$27.7 billion in 2019. The Dorsett Changi City Singapore hotel, is well positioned to serve business and leisure travellers from nearby Changi Airport, and we look forward to its positive contributions to the Group. While this hotel marks our entry into the Singapore hospitality market, it is also a sign of more things to come in terms of our global hospitality expansion aspirations.
BUSINESS OUTLOOK
The global economy faces much uncertainty, with potential headwinds such as ongoing geopolitical tensions, global tariff war, governmental monetary or fiscal policy changes, and a softer Chinese economy.
Nevertheless, we remain cautiously optimistic for 2025, which we believe also harbours potential for positive new developments and opportunities. Barring unforeseen circumstances, the UK economy, one of our key hospitality markets, is forecast to stage a recovery this year, with GDP growth forecast to more than double from 0.8% in 2024 to reach 1.7% this year, boosted by a looser monetary and fiscal policy stance. Our 5-star hotel in Paro, Bhutan, named the “Dawa at Hilltop by Heeton”, is targeted to be launched in the second quarter of 2025 and will be the largest hotel in the country. As part of our plans to become a global hospitality player, we also continue to look out for strategic opportunities in the hospitality sector in terms of value-accretive acquisitions in exciting markets, where depending on scale, we will either invest by ourselves or in a collaborative partnership.
As Singapore’s economic outlook remains uncertain due to global macroeconomic uncertainties, we continue to implement strict cost controls, prudent capital allocation and debt management, and other initiatives to boost operational efficiencies, bolster our balance sheet and maintain Heeton’s brand excellence. The Group’s two retail malls in Singapore remain a steady and reliable source of income for the Group, while we continue to explore new business diversification opportunities, such as commercial developments, build-to-rent concepts, and other housing projects.
EXCITING TIMES AHEAD
With our experienced management team, stringent cost management, operational excellence, and growing reputation, the Group is well positioned for what lies ahead. As we navigate an uncertain year, we will remain dynamic, forward thinking, and prudent in all that we do to continue delivering growth and prosperity for the Company.
As we continue expanding our presence in new markets in the near future, including Bhutan and Singapore’s hospitality sector, while building more partnerships around the world, and developing the Heeton brands, we are progressing toward fulfilling our vision of becoming a global boutique hotelier.
IN APPRECIATION
I wish to accord my appreciation to our loyal staff for their hard work and perseverance in 2024. I also would like to express my gratitude for all our partners, stakeholders, and shareholders for their unwavering trust and support in the Group and management team. Last, I want to thank my fellow Board members for their invaluable guidance and insights as we collectively steer Heeton forward in 2025 and beyond.
Sincerely,
TOH GIAP ENG
Executive Chairman