A detailed research report on this topic is available here
2011: A year with some challenges
In 2011, growth in international tourist arrivals was positive across all regions led by Asia-Pacific (+10%) and Africa (+7%). Hotel professionals around the globe are more optimistic about 2012 than they were about 2011, with regards to increases in room occupancy.
Asia-Pacific SHOWs promisE in global hotel supply
The US and Europe currently share more than 60% of the global hotel supply with the Asia-Pacific region accounting for 21%. Room supply increased across all of Asia in 2011, resulting in 42,368 new rooms - an increase of 10.7%. The Asia-Pacific supply will continue to grow because almost half the hotels currently under construction are in Asia and 57% of these are located in China.
According to the Hotel Price Index, the average price of a hotel room around the world rose by 4% in 2011 year on year. Asia-Pacific was the only region to experience a price fall in average price rates in 2011 (down 2%) due to devastating natural catastrophes in two popular destination markets. All other areas hotel price indexes are increasing: 5% in North America, 4% in Latin America, 3% in the Caribbean, and 2% in Europe and the Middle East. Hotel price volatility is greater usually come with seasonal climate change in destination.
In 2011, the most expensive cities in Asia in terms of Average Daily Rate (ADR) were Hong Kong (USD248), Singapore (USD235), and Tokyo (USD175). Conversely, the least expensive cities are Beijing (USD 102), Bangkok (USD97), and Jakarta (USD 93).
THE Asia-Pacific hotel industry recovered slowly in 2011 and IS positively forecasted in 2012
The Asia-Pacific hospitality industry entered 2011 with a healthy momentum and forecasts for the region were optimistic. The year began with foreign arrivals increasing at a strong pace, this pushed up hotel occupancy and prices with Singapore leading the way. However, the continued effects of the Global Financial Crisis and the growing European Debt Crisis coupled with unpredictable events (such as natural disasters in Japan and Thailand, and the Arab Spring) were all factors affecting recovery and predicted growth for 2011 in the Asia-Pacific hospitality business.
Asia-Pacific region’s occupancy rate ended 2011 with an annual growth of 0.2%, increasing to 66.8%. The general outlook for hotel performance in 2012 is positive. Since 70% of visitor arrivals in Asia are intra-regional, it implies that the Asian hotel industry is becoming less reliant on American and European tourism.
According to Smith Travel Research, Inc., the Asia-Pacific region reported the highest Revenue Per Available Room (RevPAR), USD$94, for the last seven years up to 2011. In the coming years, RevPAR is expected to be mainly driven by increasing ADR.
Conclusion
Whether demand or supply driven, the Asia-Pacific region is set to play an increasingly important role in the global hotel industry. The region is expected to receive 27% of global tourist arrivals by 2020, and almost half of the hotels set to open during 2012 and 2013 are located there.
Within the Asia-Pacific region, demand, supply, and investments are driven by China. China received 42% of all foreign arrivals in Asia-Pacific during 2011 and accounts for 57% of the hotels under construction in the region in recent years.
A detailed research report on this topic is available here
Resources:- World Tourism Organization (UNWTO);
- Jones Lang
- LaSalle Hotels
- CBRE
- Hotel-Price-Index