In this week’s roundup of news from the Asia/Pacific region: supply and demand worries in South Korea; thriving tourism in Tasmania; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Asia/Pacific region.
Analysis: Olympic host South Korea needs a demand boost
The 2018 Winter Olympics in Pyeongchang, South Korea, could provide the demand boost the country’s hotel industry needs, writes STR’s Jesper Palmqvist and Jan Freitag. STR is the parent company of HNN. Macroeconomic troubles in South Korea and its relationship with Mainland China have exacerbated a drop in demand as supply has grown above 7% in recent years.
As supply has surpassed demand, room rates dropped alongside occupancy. Room rate in South Korea has fallen for five consecutive years since its peak in 2012.
Global brands rush to Australia’s island state
Tasmania, Australia’s southernmost state, has benefited from growing popularity with tourists and as a destination for meetings, according to HNN contributor Tamara Thiessen. The island had 1.28 million visitors for the 12-month period ending September 2017, an 8% year-over-year increase.
Tasmania has 13 properties with 2,674 rooms in the pipeline as of November 2017, according to the article, a 35% year-over-year increase over the existing 174 properties and 7,582 rooms.
“To have so much interest in investing in Tasmania, especially by some of the global hotel chains, is a feather in the cap for the industry and government,” said Steve Old, Tasmanian Hospitality Association CEO, who added better government promotion and investments have reaped record visitor numbers even in winter.
India’s ITC Hotels defines luxury in its own way
ITC Hotels has focused its efforts to provide its guests with a luxurious experience, but in a responsible way, reports HNN’s Dana Miller. The company takes a triple-bottom-line approach, focusing on economics, the environment and society.
“ITC began building hotels that were an archetype of the culture and ethos of the region they were located in,” said Nakul Anand, executive director of ITC Limited, parent company of ITC Hotels. “The distinct identity and localization that we brought to our hotels, premised on the ethos of responsible luxury, has been the game changer for us in the last decade.”
STR: Asia/Pacific 2017 hotel performance
Hotels in the Asia/Pacific region reported positive results in the three key performance metrics in 2017, according to data from STR. Occupancy grew 2.6% to 70.9% and average daily rate increased 0.9% to $100.57, combining for revenue per available room growth of 3.6% to $71.31.
Among the countries in the region, New Zealand reported strong RevPAR growth of 11.9% to 152.06 New Zealand dollars ($110.68), a result of 1.1% occupancy growth to 80.2% and ADR growth of 10.7% to NZ$189.58 ($138.00).
Marketing, infrastructure needed for Sri Lanka
In order to fully achieve its tourism potential, Sri Lanka needs to continue improving its infrastructure and increase its marketing, sources told HNN’s Terence Baker. That said, the island nation is growing in popularity among travelers, with the number of visitors increasing 7.4% year over year to 180,123 as of November 2017.
“The north needs to get its infrastructure right,” said Ranil de Silva, joint managing director at Aitken Spence Hotels. “Accessibility is poor, and that is also the case for other areas. For us, at the moment, we’re not rushing into development in such areas. We have land there, in Trinco, but now is not the right time.”
Deals and developments
- Meliá Hotels International announced the signing of four hotels in Vietnam: the 159-room Meliá Saigon Central, the 72-room Innside Saigon Central, the 115-room Innside Saigon Mariamman and the 251-room Innside Halong.
- InterContinental Hotels Group has signed the 120-room Holiday Inn Express Singapore Serangoon.
- Thailand’s Dusit International will delay the renovation of its flagship hotel, Dusit Thani Bangkok, until January 2019 to add value to the project.
- Hong Kong’s Ovolo Hotels acquired the 102-room Emporium Hotel in Brisbane, Australia, for 40 million Australian dollars ($31.4 million).
- New World Hotels & Resorts has opened the 300-room New World Petaling Jaya Hotel in Kuala Lumpur, its first property in Malaysia.
- Six Senses Hotels Resorts Spa signed two hotels in Singapore: the 49-room Six Senses Duxton and the 138-room Six Senses Maxwell.
Compiled by Bryan Wroten.