Northstar

FEATURE www.travelweeklyweb.com Hotel rates on the rise Shanghai is one of the cities with the fastest rising hotel rates. By Natalie Chen This year has been a promising one for the hotels reflected in their rising rates. Hotel rates have been on the rise in 2010 as compared to 2009 by 5 to 20 percent, with some destinations such as Shanghai rising by as much as 100 to 200 percent said Chan Brothers. According to Jean-Marc Busato, managing director, Carlson Hotels, Asia Pacific, "We are experiencing positive rate growth across our key destinations in Asia. We are seeing a return in demand supported by major events such as Shanghai Expo 2010. China, Shanghai rate increases are significant and driven partially by Shanghai Expo 2010. Occupancies are up across our key destinations. For example, our year-to-date occupancy for September vs. same period last year in Shanghai is +21percent." Rates have been on the rise in seeing major demand growth. The year 2009 saw a decline in both of these segments with a recovery being experienced in 2010. Rates generally remain at levels below that of 2008, however are correcting quickly in primary destinations. According to STR Global-Asia Jean-Marc Busato, managing director, Carlson Hotels, Asia Pacific 2010 throughout much of Asia due to a surge in demand. Most markets have seen an increase due primarily by streng thening business and meetings and conventions related travel. Cities such as Hong Kong, Singapore, Seoul, Shanghai, Beijing, Jakarta, Kuala Lumpur, Taiwan are 4 | ■ TRAVELWEEKLY ASIA | 26 OCTOBER 2010 Pacific Hotel Review ( July 2010), Asia Pacific leads in the categories of Occupancy (12.8%), Average Daily Rate (ADR) (10.65%) and Revenue per Avai lable Room (RevPAR) (24.8%) with growth at least double or triple any other region worldwide. The increase in prices is due to the rising demand. For example in Singapore, the two Integrated Resorts are drawing visitors whereas for Taiwan the r i se ha s been gradual since the beginning of the year, correlating with the surge in overseas tourists including Chinese tourists from mainland China. As for Shanghai, this is due to the Shanghai Expo mentioned before. "Inf lation is one, in Malaysia prices of electricity and petrol will rise gradually as the government is not able to subsidise anymore. Generally, Asian hotels are also trying to raise prices to a value they feel they are worth. By default due to the strengthening of the Asian currencies overall prices will go up but that cannot be helped. Basically, inflation is hitting in for many, it is hard to keep prices low or even for it to remain at the same level. Wages and salaries have been also on the rise to meet the lack of skilled trained workers situation and to counter the effects of the rising cost of living. Some countries like Sri Lanka and Bali are facing an over demand situation thus naturally prices will be adjusted," said Yap Sook Ling, managing director of Asian Overland Services Tours & Travel. www.travelweeklyweb.com

• Cover