[photopress:china_hotel_room.jpg,full,alignright]The HotelBenchmark Survey by Deloitte shows that hotels in China have seen strong growth during the first eight months of 2006 as revenue per available room (revPAR) increased 8.7 percent. Average room rates have been the driving force behind this growth and are now US$10 higher than the same period in 2005, at US$111. All cities tracked across China saw increases in average room rates over the period.
Will this go on?
One indicator is that for the second consecutive year, China remained in the World Tourism Organisation’s Top Destinations list in terms of international tourist arrivals. With 46.8m arrivals during 2005, China ranks in fourth position behind France, Spain and the US.
Lorna Clarke, Executive Director of HotelBenchmark said: ‘2006 promises to be another good year for hotel performance in China. Although revPAR growth for the first eight months of 2006 has been slower than the 14.3 percent achieved in 2005, it is still impressive. Going forward China will continue to challenge other destinations, last year the country ousted Germany from the number six spot in terms of tourism receipts and it needs just 2.6m more visitors before its level pegging with the US.’
So, yes, hotel average room rates will continue to rise until demand slows. That will not happen until after the 2008 Olympics.
Source: Hotel Benchmark