Chennai: Despite Asia Pacific region on track for another record year of international tourist arrivals in 2013, hotels across the country may continue to face a tough time. Hospitality sector in the country has been at its low so far this year with low occupancy rates.
There seems an 8% year-on-year growth in international tourists visiting Asia in the first half of 2013, says Asia Hotels View 2014, an annual report released global property consultants by Cushman & Wakefield.
Last year, 221.5 million international tourists visited Asia, which was 7.2% higher than 2011. Of all the sub-regions, Southeast Asia took the lead with a 9.9% year-on-year increase in arrivals.
“The drop in NCR is due to 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 with new inventories having come into the market,” said Mr Akshay Kulkarni, Southeast Asia regional director at Cushman & Wakefield.
NCR currently has over 23,500 total units with 75% in the organized sector. In 2012, the total inventory went up by 1,500 units. Of the total NCR hotel inventory, the luxury segment contributes the highest share of about 34% with a robust supply of hotels in pipeline, about 18,000 keys are expected to enter the market over the next five years.
“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,” Kulkarni said.
As of 2012, total organized inventory in Mumbai accounted for over 14,000 keys.
