APAC Tourism& Hotel Markets Unprecedented Downturn
CBRE MARKETVIEW ASIA PACIFIC HOTELS H1 2020 Asia Pacific saw the largest decline in tourist arrivals of any region in H1 2020, with visitors falling by 72% y-o-y. Domestic tourist demand has begun to take on a more prominent role, with several countries launching initiatives to promote local tourism in recent months. Regional hotel occupancy fell by 15.6 percentage points to 54.5% in H1 2020, with markets reliant upon international arrivals recording severe declines. The near total shutdown in international travel also led to occupancy and ADR suffering drastic falls. Regional ADR declined by 13.7% y-o-y US$86.5 in H1 2020. RevPAR stood at US$49.6 in H1 2020, representing a drop of 29.3% y-o-y. Asia Pacific hotel transaction volume stood at approximately US$4.3 billion in H1 2020, a fall of approximately 31% compared to the same period of 2019. With the hotel sector more vulnerable than many other property sectors to the impact of measures to contain the pandemic – and many of these restrictions remaining in place - purchasing activity is likely to remain muted in H2 2020.
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