KUALA LUMPUR, Malaysia, Oct. 06, 2023 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (“VCI Global”, or the “Company”) has entered into a letter of intent to acquire the leasing rights of Impiana Private Villas Cemagi, Bali and Impiana Private Villas Kata Noi, Phuket from Impiana Sdn Bhd, through its subsidiary, V Capital Real Estate Sdn Bhd.
Impiana Private Villas Cemagi comprises 6 villas covering over 604 sq m, which accounts for only 8% of its total land area, providing opportunity for future expansion when required. Impiana Private Villas Kata Noi in turn has 11 villas covering 1,105 sq m, covering less than 40% of its land area.
Growth potential at these two internationally renowned tourism hotspots is astounding. Thailand’s hospitality industry is expected to reach USD$19 billion by 2028, giving a 5-year compound average growth rate of almost 30%. For Phuket itself, the 9.2 million tourist arrivals in 2022 have surpassed pre-Covid levels. Nevertheless, arrivals are expected to surge further with an anticipated 30% growth to 12 million in 2023. The Thailand government has already implemented developments of supporting infrastructures to cater for this surge in arrivals such as the expansion of Phuket International Airport. Upon completion of the expansion by 2027, the airport will be able to handle 18 million passengers annually. All these will lead to higher occupancy rates and increased revenue for the local tourism industry.
Market research organisations have valued Indonesia’s travel and tourism sector at US$7.5 billion to US$8.0 billion in 2023, increasing to between US$10 billion to US$11 billion by 2027. This implies the sector is expected to experience a compound annual growth rate of 6% to 8%. With the largest segment of this sector being the hotels market, accounting for US$4.3 billion in 2023, such anticipated high growth will undoubtedly benefit Bali, being Indonesia’s thriving tourism sector’s focal point. Bali itself contributes approximately 20% of Indonesia’s total accommodation offerings.
“The acquisitions of Impiana Cemagi and Impiana Kata Noi are strategic investments. The bright prospects basically guarantee good returns on our investment. To optimise the potential value of these two resort properties, we intend to redevelop Impiana Cemagi while Impiana Kata Noi will be refurbished through V Capital Real Estate. More importantly, this is in line with our plans to seek more opportunities in the hospitality segment within the Southeast Asia region, following our recent partnership with YY Group Holding Limited,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
About VCI Global Limited
VCI Global is a multi-disciplinary consulting group with key advisory practices in the areas of business and technology. The Company provides business and boardroom strategy services, investor relation services, and technology consultancy services. Its clients range from small-medium enterprises and government-linked agencies to publicly traded companies across a broad array of industries. VCI Global operates solely in Malaysia, with clients predominantly from Malaysia, but also serves some clients from China, Singapore, and the US.
For more information on the Company, please log on to https://v-capital.co/.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company's products and the Company's customers' economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
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