LONDON, 26 November 2018: Hotels in the Asia-Pacific region posted positive results during October, but there were stark contrasts in performance between the two holiday islands Bali and Phuket.
Based on STR data collected on occupancy, average daily rate and revenue per available room, the region recorded positive results.
Calculations based on US dollar constant currency for October compared with the same month last year showed average occupancy in Asia-Pacific improved by1.6% to 72.5%.
But when STR drilled down to individual country markets in local currency, Indonesia’s holiday island Bali showed strong signs of recovery after a poor year due to earthquakes on nearby Lombok island and the threat of volcanic eruptions.
Hotels in Bali improved average occupancy by 18% achieving 75.6% in October, average daily rates increased by a massive 39% to IDR1,1890,946.89, while RevPar improved by 64.1% to IDR1,429,016.40.
The absolute ADR and RevPAR levels were the highest for any October in STR’s Bali database, while the absolute occupancy level was the largest for an October in the market since 2011.
STR analysts noted that the performance lifted, during 8 to 14 October, when meetings of the Boards of Governors of the International Monetary Fund and World Bank Group were held.
Phuket was not so lucky as October closed with the same negative trend recorded in three previous months. (July, August and September)
October’s occupancy was down by 16.1% to an average across the island of 63.5%. However, average daily rate showed a slight improvement of 0.7% to THB2,985.51, but RevPar was down 15.5% to THB1,896.78
The occupancy level was the lowest for an October in the market since 2009, while the absolute ADR and RevPAR levels were the lowest for an October since 2010.
The steep year-over-year decrease in occupancy was worsened by comparison with a strong October in 2017.
Phuket has now seen four consecutive months of RevPAR declines.
STR analysts believe this could be due to a decline of group tour business, along with a softening of tourist arrivals from mainland China, something that other key destinations in Thailand have also experienced in recent months.
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