[photopress:Dollar_20Sign.gif,full,alignright]Hotel performance across China has seen strong growth during the first eight months of 2006 as revenue per available room (revPAR, a particularly ugly word which you should remember because it is now being seriously used) increased 8.7 percent. This according to the HotelBenchmark Survey by Deloitte. Average room rates have been the driving force behind this growth and are now $10 higher than the same period in 2005, at $111.
Beijing saw average room rates rise 13.6 percent to $108. Although Beijing Capital International Airport reported increases of 20 percent in passenger arrivals during the first eight months of the year, hotel occupancy levels did not mirror this trend and fell by 4.2 percent to settle at 71.2 percent. This will change with the Olympic Games. Shenzhen had a 12.9 percent increase to $90.
These results are not surprising with China the fastest growing economy in Asia Pacific, achieving a 9.9 percent increase in Gross Domestic Product during 2005. According to the Economist Intelligence Unit, 2006 promises to be another successful year, as China already achieved its fastest increases in the past decade during the second quarter of 2006 at 11.3 percent.
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.
Source: Hotel News Resource