HOTEL DEVELOPMENT AND INVESTMENTS The tourism sector continued to make up ground post-COVID-19 pandemic and is on its way to making a full recovery. As of the first nine months of 2024, global tourism has recovered 98% of pre-pandemic levels5. In tandem with the strong global tourism growth, Maldives’ tourism sector continued to perform strongly which augured well for our two resorts, the Mercure Maldives Kooddoo Hotel and Pullman Maldives Maamutaa Resort. Maldives received 2.0 million visitors for 2024 as compared with 1.9 million tourists in the previous year (an 8.9% increase)6. The combined average occupancy of Mercure Maldives Kooddoo Hotel and Pullman Maldives Maamutaa Resort for 2024 was 62.5%, higher than the industry average of 59.1%. Nevertheless, our investment bottomline was impacted due to high operating costs. The Group registered a share of losses in our two hotel investments. We are working closely with the hotel operator, Accor, on improving the performance of these two properties among other measures. Despite some threats to this sector such as weaker consumer sentiment in 2025 amid global uncertainties, the overall demand for travel will continue to contribute to the sector’s resilience. SUSTAINING COMPETITIVENESS THROUGH INNOVATION, DIGITALISATION AND PRODUCTIVITY We have fully integrated Design for Manufacturing and Assembly (“DfMA”) technologies into our manufacturing process. The Prefabricated Prefinished Volumetric Construction (“PPVC”), Prefabricated Bathroom Unit (“PBU”), and Mechanical Electrical Plumbing (“MEP”) modules improve productivity at construction sites, as the manufacturing of these building components can be completed off-site in a safe and controlled environment. We have upgraded our digital capability in Building Information Modelling (“BIM”), Virtual Design and Construction (“VDC”), and Virtual Reality (“VR”). We are proud to be one of the pioneers in adopting the Digit-alpha capability transformation Programme, a pilot project with VR as a core module sponsored by Info-communications Media Development Authority. We will continue to invest in innovation and new technology to improve our operations, enhance productivity and maintain our competitive advantage. A SKILLED, PRODUCTIVE AND SATISFIED WORKFORCE OUR CORE COMPETITIVE ADVANTAGE As with previous years, our staff were sent for various reskilling, upskilling and other productivity training programmes to enable them to operate effectively and more importantly safely at the worksites and our offices. With the emphasis on innovative technology being deployed, we ensure all affected staff are well-equipped to operate confidently in this digital age. For example, we have established a drone team and have sent them for certified drone training, comprising of practical and theory sessions. This will enable them to attain a license to operate drones for our building and construction projects. These drones will be utilised for a variety of applications. We continued to send our staff for training in certification courses such as those for Green Mark Manager and Specialist Diploma in Construction Productivity as well as production-related areas such as Good Industry Practices, BIM Management and BIM Architecture to ensure they are well-versed in specific sustainability and innovation programmes. Our basic skilled workers were enrolled for higher skills training such as in the BCA Coretrade Skills training and Multi-Skilling training. To-date, 43.5% of our 259 work permit holders are higher skilled (R1) certified, surpassing the minimum 10% as required by the Ministry of Manpower (“MOM”). We met work-site safety targets over and above compliance with the Workplace Safety and Health (“WSH”) Act. Training in workplace safety included designation of Peer Support Leaders to reach out to fellow workers with mental health issues or in distress. We also participated in the CultureSAFE program to cultivate a progressive and prevalent WSH culture in the organisation which extends beyond merely executing WSH practices. By actively promoting a safety awareness culture, we ensure that every employee embodies and expounds our WSH values for an accident-free, safe and healthy work environment. 5 UN Tourism, “Global tourism set for full recovery by end of the year with spending growing faster than arrivals,” 4 December 2024. 6 Ministry of Tourism, Republic of Maldives. 14 KEONG HONG HOLDINGS LIMITED FINANCIAL AND OPERATIONS REVIEW
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