Full Tourism Recovery in APAC Forecast for Early 2025
Skift Take
Fitch Ratings said China outbound tourism to countries in the Asia Pacific region is projected to recover to 86% of pre-Covid levels in 2024. Chinese tourist spending will continue to be restrained. Fitch expects recovery in APAC tourism to continue in 2024 but at a slower pace due to less favorable base effects. Fitch expects visitation in APAC to reach 92% of 2019 levels while nominal international tourism receipts will exceed 2019 by 6%. China visitation recovery remains slightly slower due to its later reopening. They expect the APAC recovery to be fueled by robust demand, economic resilience, additional flight capacity, policy efforts to reignite tourism and depreciated local currencies. Fitch expects full APAC tourism recovery to occur in 1H25 but the risks are a slow restoration of international air traffic, elevated airfares and energy prices, and heightened geopolitical tensions.
The Hong Kong Tourism Board reported an 80% increase in visitor arrivals for the first five months of 2024, highlighting significant growth in tourism. The HKTK reported visitor numbers for May were 3.4 million, up 20% year on year with Mainland visitors accounting for 2.63 million, up 15%. That is more telling than the results from the first 5 months because the comparison was when Mainland China first started opening up after the pandemic. There were 18 million visitors to Hong Kong in the first 5 months of 2024.
STR reported China hotel data for the week ended June 15. China Hotel RevPAR was down -11.6% year over year, up against a decent +59.8% comp in 2023. Occupancy for the week was down -9.9% year over year.
Marriott International’s Westin Hotels & Resorts announced the opening of The Westin Resort & Spa Cam Ranh, marking the brand’s entry into Vietnam. The 207 key resort will offer a choice of guest rooms, suites, and pool villas, locally sourced cuisine and an extensive collection of well-being experiences. The resort is situated along the serene Cam Ranh Long Beach, a 10 minute drive from Cam Ranh International Airport. Accommodations include spacious guest rooms, suites and one, two or three bedroom standalone pool villas. The resort showcases a various of culinary options, a WestinWORKOUT Fitness Studio, Heavenly Spa by Westin and modern meeting spaces including a Grand Ballroom.
NovaWorld Phan Thiet will debut the Novotel 5-star international hotel in early 2025. Last week Novaland Corporation and Hoa Binh Construction Group kicked off the completion of the hotel project in southern Vietnam at the first NovaWorld Phan Thiet project in Binh Thuan Province. The 10 floor hotel will span 27,000 square meters and will offer 250 rooms, restaurants, swimming pool, gym and meeting facilities.
Filinvest Hospitality topped off its latest hotel development, Grafik Hotel Collection located within Camp John Hay in Baguio City in the Philippines. This marks the official launch of FHC’s Grafik Hotel Collection, a new line of hotels aiming to deliver guest experiences that will inspire stories about Filipino culture and heritage. The project is in partnership with the Bases Convention and Development Authority and John Hay Management Corp. The Grafik Hotel Collection, with a total investment of P2.7 billion, will offer 256 upscale accommodations, five food and beverage outlets, a grand ballroom, meeting spaces and a spa. FHC is targeting the opening for the first quarter of 2025.
Wyndham Hotels & Resorts unveiled the Wyndham Ion Majestic Hotel, Genting Highlands in Malaysia. This is the first 5 star Wyndham hotel there. The property stands at 6,000 feet above sea level and will add approximately 178,000 square feet of retail space. The hotel is located an hour from Kuala Lumpur. One of the centerpieces is the Vertical Sky Glass Pyramid which sits on the rooftop, offering a Wedding in the Sky experience. The hotel’s banquet hall is capable of accommodation up to 1,500 MICE guests.
Absolute Hotel Services announced the addition of a new property in Rayong, Thailand – U Rayong. AHS signed a hotel management agreement with Thongchai Real Estate Company Ltd to manage the property, expected to open in 2027. U Rayong is the 30th hotel in the U Hotels & Resorts portfolio. It will have 120 rooms and villas, versatile event spaces, F&B outlets and the signature U Library. The opening will coincide with the redevelopment and expansion of U Tapao Airport and will cater to the domestic and international upscale markets, offering a full suite of premium facilities.
In Jakarta, hospitality and property company Intra GolfLinks Resort is launching an initial public offering that is aiming to raise RP 713 billion to fund the construction of a six star hotel in Bali. The company plans to issue up to 3.1 billion new shares, representing 15.02% of total shares, priced between Rp 200-230 each. The IPO proceeds will see 87.53% allocated to the New Kuta Golf and Ocean View subsidiary with 67.32% of the capital funding a six star luxury boutique hotel at Hole 15 – The Cliff Hanger, in Pecatu Indah Resort, Jimbaran, Bali. The public offering is scheduled for July 2 to 4.
Wanda Hotels and Resorts celebrated the inauguration of its Wanda Vista in Vientiane, Laos. The Wanda Vista Latsavong stands at 138 meters high, the tallest edifice in Vientiane. This is the second overseas venture of Wanda Hotels and Resorts. It has 272 rooms and suites, five restaurants and lounges, nestled within the Latsavong Plaza at the heart of Vientiane’s administrative hub.
Personnel Moves
Marriott International announced the appointment of Deb McDiarmid to the executive leadership position of Area Director of Marketing for Australia, New Zealand and the Pacific. She has relocated to Sydney from the Sheraton Grand Mirage Resort, Port Douglas where she was Director of Marketing for the past two and a half years.
Centara Hotels & Resorts announced Ron Cusiter has been named new Executive Vice President – Commercial and Percy Muncherji was appointed Vice President – Design & Technical Services. Cusiter joins Centara from Kempinski Hotels where he was VP – Global Sales & The Americas. Muncherji was most well known as the former VP - Technical Services for Oakwood Asia Pacific.
Hotel and Lodging Performance
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