New Rich Fuel Asian Hotel Boom

Tourism in the Asia-Pacific region is definitely growing, and not only from international traffic, said Rohan Dalziel, an investment analyst with Barings Securities.

One of the fastest growing areas is intra-region traffic.

People in Asia are riding the back of rising disposable incomes and, with the transition from some of the older Asian values to more relaxed Western work ethics, they're beginning to travel further afield, Dalziel said.

A new survey by PKF Consulting, a long-time follower of trends in the regional hotel industry, shows that in the first half of this year, the majority of markets saw increases both in occupancy and average daily room rates. Hong Kong led the cities surveyed with the fullest hotels, posting a rate of 88 per cent in June, up slightly from about 86 per cent last year.

 

Sydney, up three per cent from 77 per cent, and Seoul, which maintained growth at 80 per cent, followed Hong Kong with the highest half-year occupancy levels.

Bali and Jakarta showed the biggest growth in occupancy, and Seoul the largest increase in average room rates, which jumped 15 per cent to $159 this year from $138 last year. Tokyo continued to lead the market with the most expensive average rate at $178 for the first six months of this year, followed by Seoul and Hong Kong.

There has been an increase in the volume of tourists and business travellers to the region. Some markets such as Bali, Jakarta, Manila, and Tokyo, jumping substantially, said PKI's manager Susan Goodfellow.

.In comparison to other regions, Asia has become the major focus of growth.

, and there's still a lot more potential for even further growth, she said.

The World Tourism Organisation said in May the Asia-Pacific region was the biggest winner in the global tourism stakes. Its market share was expected to rise to 22 per cent this year compared with 15 per cent last year.

Hotel room occupancy in Beijing jumped to 85 per cent in June