LONDON, 24 March 2017: Hotels in the Asia Pacific region reported mixed revenue and occupancy results during February 2017, according to the latest data from STR.
Based on US dollar constant currency, year-over-year comparisons, hotels in the Asia Pacific region saw occupancy increase by 8% to an average 68.7% during February.
However the average daily rate (ADR) slipped 5% to USD102.95.
STR highlighted the performance in specific markets using local currency, year-over-year comparisons;
Occupancy: 0.0% to 77.8%; ADR: -0.6% to AUD194.09; RevPAR: -0.6% to AUD151.06.
STR reported Australia’s performance was stable as supply and demand grew at an identical rate (+1.8%). At the market level, Sydney benefitted from the Chinese New Year as well as Tropfest (7 to 11 February) events. The market’s absolute RevPAR level (AUD231.57) was the second-highest on record behind only September 2000 (Summer Olympics).
Occupancy: -4.9% to 56.7%; ADR: -8.9% to TWD5,347.32
RevPAR: -13.4% to TWD3,033.41.
STR analysts believe that hotel performance was hurt by a decline in arrivals from Mainland China. For January, the Taiwan Tourism Bureau reported a 30.2% decrease in such arrivals while Mainland Chinese visitors made up the largest percentage (31%) of Taiwan’s total international arrivals. February hotel supply growth was marginal (+0.4%), but demand fell significantly (-4.6%).
Occupancy: -1.6% to 86.1%; ADR: -4.2% to THB4,091.44
RevPAR: -5.7% to THB3,523.94
Similar to Taiwan, STR analysts attribute some of Thailand’s performance declines to a decrease in arrivals from Mainland China. According to the Association of Thai Travel Agents, arrivals from Mainland China decreased 23.1% from 1 January to 10 March 2017 when compared with the same date range in 2016. Meanwhile, supply growth across the country (+2.7%) was more than double the rate of demand growth (+1.1%). Significant RevPAR declines were seen in two of Thailand’s largest markets, Bangkok (-4.3%) and Phuket (-5.3%).