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SINGAPORE - May 15, 2000 -- Singapore led the
Asia-Pacific region in terms of RevPAR (Revenue Per Available Room) growth,
compared with the same period in 1999, according to the first quarter 2000
results of the Arthur Andersen Asia Pacific Hotel Industry Benchmark Survey.
The Lion City achieved a RevPAR increase of 26% over 1999 levels to S$133.42. Occupancy rates in Singapore also rebounded 12.8 percentage points from 66.9% to 79.7%. Average room rates climbed a healthy 5.9% to US$97.84, reflecting the strong recovery in regional demand driven by the return to economic health of many regional economies. In particular, the benchmarking results for Singapore were driven by an impressive turnaround in the performance of Orchard Road hotels. Hotels in the district registered a leap of 16.9 percentage points in occupancy to 81.7%, an average room rate of US$121.09 and an increase in RevPAR (in local currency) of 42.3%. Marina Square hotels recorded an occupancy of 75.9%, which represents an increase of seven percentage points compared with 1999 levels, although average room rate softened marginally by 0.2% to US$93.49. Remarks Andreas Flaig, Associate Director of Hospitality Consulting, Arthur Andersen, Singapore, �Singapore really was the star performer in the region, in terms of RevPAR growth for the first quarter of this year. In our benchmarking analysis we have seen the city move confidently into a strong position of recovery.� In his analysis of the upturn, Flaig adds, �The rise in regional demand on the back of regional economic recovery is an obvious driver. However, more specifically, the Asian Aerospace 2000 exhibition in February generated strong demand and gave the market a great boost. I would expect the additional demand to have benefited other tourism-related sectors also, including restaurants and retail.� Hong Kong recorded strong performance in terms of RevPAR growth, increasing 16.4% over 1999 levels. Occupancy jumped 7.8 percentage points to 81.5%, and Hong Kong achieved an average room rate of US$126.55, which ranks it as the third highest average room rate in US$ terms in the region. Average rates on Hong Kong Island continue to achieve a significant premium over Kowloon. In the first quarter of 2000, the average room rate for Hong Kong Island was US$136.72, representing a premium of 21.2% in US$ terms over Kowloon at US$112.79. Other star performers in the region, in terms of RevPAR growth, were Xian and Penang, driven by improved occupancies and higher average room rates. Xian recorded RevPAR growth of 23.9% and a jump in occupancy of 10.1 percentage points to 55.6%. Penang rebounded with growth in RevPAR of 17.9%, and an increase of 7.3 percentage points in occupancy to 72.8%. Limited new supply enabled both cities to benefit immediately from the resurgence in demand. The regional �losers� in terms of RevPAR performance were Bali, Manila and Ho Chi Minh. Of the 24 markets tracked in the Arthur Andersen Asia-Pacific Hotel Industry Benchmark Survey, these three were the only markets that recorded RevPAR declines over 1999 levels. All three markets were effected by political and economic instability. Social unrest in Indonesia acted as a deterrent to leisure travellers, while Ho Chi Minh has yet to convince investors that it offers good investment opportunities, and thus suffers from weak corporate demand. Concludes Flaig, �With only three markets that we track recording negative
RevPAR growth, the regional outlook for 2000 looks very positive indeed.
With Asia-Pacific�s economic conditions improving, we foresee strong growth
in corporate and leisure demand, boosting hotel performance across the
board. For some of the over-supplied markets in Asia, demand growth has
been long-awaited.�
The Arthur Andersen Hotel Industry Benchmark Survey comprises information gathered from more than 3,500 hotels in 200 markets in 140 countries. Arthur Andersen is a business unit of Andersen Worldwide. |
Katharine Le Quesne, Singapore at +65 421 8503 Andreas Flaig, +65 421 8148 [email protected] |
Also See: | ASEAN Tourism Recovers: Part 1 / PATA / March 2000 |