Asian hotel industry seen to stabilize<\/p>\n
Martin Abbugao, Agence France-Presse, Singapore<\/p>\n
The Asia-Pacific hotel industry should stabilize this year,
\nwith Thailand the star performer, and tourists from China
\nboosting occupancies in Hong Kong and Singapore, industry
\nexecutives said Wednesday.<\/p>\n
Japanese companies are expected to continue selling hotel
\nassets at home and abroad, while industry opportunities are most
\nattractive in Australia, Indonesia and Japan, they told a
\nconference here.<\/p>\n
A global travel squeeze resulting from Sep. 11 terrorist
\nattacks in the US using hijacked planes to slam into buildings
\nhammered the hotel industry last year.<\/p>\n
\"We are expecting occupancies in Asia to stabilize, with some
\ngrowth in average room rate going into the fourth quarter (of
\n2002),\" said Scott Hetherington, Asia vice president for property
\nconsultancy Jones LangLasalle Hotels.<\/p>\n
\"We are also expecting hotel values to stabilize after an
\naverage fall of 10-15 percent across all markets in 2001,\" he
\nsaid.<\/p>\n
Jimmy Koh, the head of treasury research of United Overseas
\nBank in Singapore, said the US economy was well on the way to a
\nrecovery and should help economies in the region.<\/p>\n
\"Overall, there are risks to the US recovery, but the risks
\nare fairly contained,\" he said, citing the resilience of American
\nconsumers, and keeping an eye on a possible, but unlikely, oil
\nembargo arising from the Middle East conflict.<\/p>\n
The experts pointed to opportunities in China, as well as the
\nimpact of Chinese tourists visiting countries in the region.<\/p>\n
Koh noted that China took in US$47 billion in foreign direct
\ninvestments in 2001, or 70 percent of the total investments into
\nAsia, up from 30 percent 10 years ago.<\/p>\n
Rutger Smits, director for hospitality and leisure services at
\nArthur Andersen, said China would be \"the success story of 2002\".<\/p>\n
\"It has a huge potential and I think we're just seeing the
\nbeginning of that,\" he said.<\/p>\n
A snap electronic poll of the participants showed most of them
\nviewed the rising Chinese city of Shanghai as this year's star
\nperformer.<\/p>\n
However, Hetherington of Jones LangLasalle said that Thailand
\nwould post the strongest year.<\/p>\n
He said oversupply conditions are likely in the four- and
\nfive-star hotel sectors Shanghai, Mumbai, Beijing, Kuala Lumpur
\nand Melbourne.<\/p>\n
\"The Thai market we believe will be the star performer in
\n2002,\" he said, adding that Phuket continued to be seen as a
\nsafer destination than rival Bali in Indonesia.<\/p>\n
\"The sale of assets ... will occur in Indonesia, and the
\nJapanese are expected to continue to dispose their assets both
\ndomestically and throughout the region,\" he said.<\/p>\n
Chinese tour groups \"will positively impact mid-level hotels
\nin Hong Kong, Singapore and Thailand\" while the Indian hotel
\nmarket \"is starting to present interesting opportunities,\" he
\nadded.<\/p>\n
The Australian cities of Sydney and Brisbane should expect
\nbrisk growth this year and Cairns should benefit from the launch
\nof the budget carrier Australian Airlines.<\/p>\n
\"There is still an enormous weight of capital wishing to
\ninvest in the Asia-Pacific region. We expect opportunities to buy
\noccurring in all countries but in particular Australia, Japan and
\nIndonesia,\" Hetherington said.<\/p>\n
But for transactions to flourish in Asia, the region has to
\nemerge from the cultural concept that a hotel real estate, or a
\nfamily business, is a legacy to be handed down from one
\ngeneration to another, he said.<\/p>\n
Transactions in the hotel industry in 2001 totaled $9.6
\nbillion in Europe, compared to only $1.75 billion in Asia, he
\nsaid.<\/p>\n
\"The question is what will be the catalyst for change in the
\nAsia-Pacific,\" he said, adding it could be greater accountability
\nto shareholders, compliance to regulations and banks aggressively
\nselling foreclosed assets.<\/p>",
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"sponsor": "Okusi Associates",
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