The growth of Asia’s economy and tourism sector brought on the attention of investors
The resurgence of tourism led to a boost in multiple sectors in Asia, including the hospitality sector which faced a surge of demand, reported legal publication Lexology. The performance of the sector steadily improved until it reached levels similar to that of the pre-pandemic era.
This rebound attracted opportunities for further investment in the Asia Pacific region, specifically for hotels. This year is predicted to beat the USD10.1 billion in investments the Asia-Pacific region has received in 2022. Shortages in the hospitality sector were more frequent as well with the layoffs that initially happened in 2021, so investors are especially looking for ways to help bring in more employees.
Within the region, Hotel Management shared a report from JLL that listed Bangkok, Beijing, and Shanghai as some of the world’s most dynamic emerging markets in terms of hospitality investment as they became popular spots to travel to. Analysts advise investors to consider these markets when thinking about the future of hospitality investment and its strength rather than the usual preference, such as Europe.
Beside these Asian cities, global visibility increased in Southeast Asia and boosted the hotel and hospitality sectors in cities, like Hanoi, Ho Chi Minh, and Manila. India showed potential to expand in this sector as well due to its socio-economic growth. With the attention turning to these cities, investors are starting to focus on them and their potential growth while putting their money into these places.
This can be seen through the report of Informa Connect, as well. Venture Capital in Southeast Asia grew and improved in comparison to five years ago. Now, the region has been receiving multiple new investors, both local and foreign. Investors have been focusing their priorities on the growth they fail to see in the United States or Europe, therefore they have turned towards Southeast Asia due to its early growth technology and its market’s clear upward trajectory.
The Property Report editors wrote this article. For more information, email: [email protected].
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