March 12, 2021

Regional tourism and hospitality industries suffer worst year on record.

Key Insights:

  • Asia Pacific recorded the largest decline in international tourist arrivals of any region in 2020. The number of visitors fell 84% y-o-y, largely due to travel restrictions enforced since March 2020.
  • The near total shutdown in international travel during 2020 led to sharp falls in Asia Pacific hotel occupancy and ADR. Regional occupancy declined to 44.7%, while ADR fell by 24.5% y-o-y to US$74.51. RevPAR stood at US$34.0 in 2020, representing a drop of 50.4% y-o-y.
  • The gradual rollout of vaccines is expected to restore some confidence in travelling and lead to the gradual easing of travel restrictions in 2021, although the outlook remains opaque. Governments and industry players continue to implement various policies and partnerships to revive the travel and tourism industries.
  • Asia Pacific hotel transaction volume reached US$6.7 billion in 2020, a fall of 56% y-o-y compared to 2019. With the hotel sector more vulnerable to the impact of measures to contain the pandemic than most other property sectors, investors may continue to be discouraged from entering the market by the prospect of underwriting future incomes and accurately pricing the risk of these forecasts.

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Contact


Zhang Jiahao
Associate Director, CBRE Hotels Asia Pacific 
+65 6326 1674
[email protected]

Wee Ting Ting 
Senior Analyst, CBRE Hotels Asia Pacific 
+65 6328 1336
[email protected]