Tourism news roundup: Asia Pacific to fully recover in 2024, other headlines

For PropertyGuru’s tourism news roundup, the hotel sector continues to grow as Asia Pacific’s tourism is expected to fully recover in 2024. Also, Hong Kong seeks to bring back the three percent hotel tax to increase its revenue in 2024, while the extended stay accommodation market is booming.

Asia Pacific tourism to approach full recovery in 2024, driving hotel sector growth

According to a new CBRE research reported in The World Property Journal, institutional investors are attracted to prime hotel assets in tier-one markets across Asia Pacific, even though tourist arrivals in key destinations are only reaching 70 to 80 percent of pre-pandemic levels.

“With (a) limited supply of high-quality assets, we anticipate intense competition among investors for the best hotel properties across Asia Pacific,” said Dr. Henry Chin, Global Head of Investor Thought Leadership & Head of Research, Asia Pacific. “Despite the region’s uneven tourism recovery, core assets in Japan, Singapore, Australia, and Korea, as well as resort markets continue to generate strong interest.”

Hong Kong budget 2024: City seeks to bring back three percent hotel tax to increase revenue

Hong Kong plans to resume charging the Hotel Accommodation Tax at a rate of three percent starting from 01 January 2025, Financial Secretary Paul Chan said on Wednesday as he delivered the budget for the next financial year.

According to HKFP, the minister said the tax would account for less than one percent of the spending of overnight visitors in Hong Kong while generating income of around HKD1.1 billion for the government annually.

Under the Hotel Accommodation Tax Ordinance enacted on 01 July 1966, hotel guests in Hong Kong were charged a two percent levy on stays. The tax was later raised to three percent, but it was waived starting 01 July 2008.

Strategies for success: unlocking profitability in the extended stay sector

The extended stay accommodation market is booming, with the sector projected to reach USD166.5 billion by 2032. With more individuals and corporations embracing flexible work arrangements, there is a strong demand for accommodations supporting a mobile lifestyle and providing more favorable rates than traditional short-stay hotels.

However, when it comes to the marketing, operations, and revenue management of extended stay properties, there are very distinct differences between their accommodations and traditional hotel rooms, along with several challenges that must be overcome.

In The Hotel Conversation report, consultant Tracy Dong enumerates the strategies for success in the extended stay sector.

The Property Report editors wrote this article. For more information, email: [email protected].