The Asia-Pacific region is on track for another record year of international tourist arrivals in 2013, according to a report released by Cushman & Wakefield, the world’s largest privately owned real estate firm.
The Asia Hotels View 2014, an annual publication covering a clinical assessment and outlook of the hotel market performance in 23 cities across Asia, revealed that estimates showed an 8 per cent growth year-on-year in the first half of 2013. Last year, 221.5 million international tourists visited Asia, which was 7.2 per cent higher than in 2011. Of all the sub-regions, Southeast Asia took the lead with a 9.9 per cent year-on-year increase in arrivals.
Across Asia, authorities are expanding capacities of airports, rail, sea-ports while enhancing city connectivity and infrastructure as part of the efforts to boost their tourism sectors.
Akshay Kulkarni, regional director of Cushman & Wakefield’s hospitality sector group across South Asia and Southeast Asia said, “The drop in NCR is due to the three regions—Noida, Greater Noida and Faridabad, apart from Delhi and Gurgaon. We anticipate that by the end of 2013, performance may not show significant improvement but that has also to do with the fact that new inventory has come into the market, including the three large hotels at the airport. In Mumbai the growth in demand is slower than the growth in supply and, hence, there will be a marginal drop in occupancy and ADR.”
He further adds, “There seems taken comparatively higher growth in demand in the NCR region against Mumbai and while the inventory in NCR is higher than in Mumbai, occupancy shows growth because there is pent up demand being captured by the unorganized sector, which will moved to the branded section in NCR. The delay in the inventory coming online in NCR is also going to support growth of ADR. In 2014, the second half should see improved business activity as well as inbound travel due to elections and stabilization of global financial health. Improved perception of safety and security and stabilise political climate should also benefit in enhancing the business volumes.”