Asian hotels' recovery continues

The Asia Pacific hotel market showed robust growth in the first six months of 2000 as the region continued to recover from its economic collapse, according to results from the Arthur Andersen Hotel Industry Benchmark Survey, Asia Pacific.

An increase in business travel from within Asia and in leisure travel from Europe, the US and Japan meant for the first half of 2000 Singapore, Hong Kong and Vietnam showed increases in tourists of 11.8%, 15.7% and 18.1% respectively.

Of the 27 markets in the survey, 13 recorded double-digit growth in revenue per available room (a measure of the average revenue from each available room in a hotel) over the first half of 2000 compared with the previous year.

Jakarta, Xian and Kuala Lumpur recorded revenue per available room increases of 28.8%, 25.7% and 19.4% respectively.

Strong occupancy growth and smaller increases in average room rate drove the growth. Jakarta notably recorded a 36.5% increase in average room rate.

Economic recovery in Hong Kong led to a 6.6% increase in average occupancies over 1999 levels to 81.2%.

Manila, meanwhile, saw an overall decline in revenue per available room of 5% as a result of earlier cuts in room rates and weak demand.

by Lois Jones