SINGAPORE -- Hotel performance in the Asia-Pacific region during
the first six months of this year is up month to month compared to
the same period last year, according to a survey by Arthur
Andersen's Asia division.
The group said observers were predicting a robust recovery in
the Asia-Pacific hotel market long before tourism arrivals and
airline load factors in the region began showing real signs of
"The hotel industry is starting to reap the benefits of
increased business and leisure travel," said Andreas Flaig,
associate director of hospitality consulting for Arthur Andersen
"Intraregional business travel has increased substantially and
leisure travel from Europe, the U.S. and especially Japan has
rebounded," Flaig said.
According to the survey, the result has been double-digit growth
in tourist arrivals for the first half of 2000 in several markets,
including Singapore (11.8%), Hong Kong (15.7%) and Vietnam
Increased demand is translating not just into improved
occupancies, but into room rate growth and stronger RevPAR (revenue
per available room) performance.
Of the 27 markets tracked by Arthur Andersen, 19 markets
recorded growth in average room rate compared to the first six
months in 1999. This compares with only 14 markets in the first
quarter of the year.
Meanwhile, 13 markets recorded double-digit growth in RevPAR
compared to the first half of 1999, representing three more markets
compared to the first quarter. These markets include Jakarta,
Indonesia; Kuala Lumpur, Malaysia, and Singapore, which recorded
RevPAR growth of 28.8%, 25.7% and 19.4%, respectively.
Typically, RevPAR growth in the region was driven by strong
occupancy growth and reinforced by smaller increases in average