Despite the economic downturn, hotel operators are still continue to open new hotels in the Asian Region. Although some markets can see a decline of Occupancy levels since beginning of this year, the Hong Kong market can see two newly opened hotels in the last month of October. The Hyatt Regency, a 381-room hotel on top of a shopping mall in the Kowloon district and the Upper House a 117-room hotel within walking distance of the central business district on Hong Kong Island.
Many of the projects were on going before the economic crisis, hence the actual result for development can be seen later in 2 year terms from now.
The big corporate brands are still in line to open up hotels in the region. Starwood just opened its 150th hotel in the region and Accor is opening 54 hotels only this year in Asia. Amari, the Thai branded Hotel chain, currently with 18 hotels under its wings, is planning to add another 40 hotels by 2018.
Besides the economic downturn, Thailand is also facing a possible political crisis. The current pressure on the government by Cambodia, by assigning Taksin Shiniwatra as their economic adviser. This will not harm tourism in the direct way, but slow down future foreign investment. Political instability has given more unrest for the foreign business which own or invested in Thailand. Tourism is rather neutral and still visiting the region.
Earlier reports show that the amount of arrivals for 2009, might well meet the target of 14 Million foreign visits this year, despite the crisis and the political turmoil. Other reports indicate that the overall business dropped with 28.4 percent (source: The International Herald Tribune, November 11, 2009) forcing the hotels to heavily discount in order to attract more business. Economist believe that the Economic crisis is not over yet. The US market which is seen as the indicator for the business here in Asia, is showing no strong recovery.
Other reports by the World Bank indicate that America should not be used as the only indicator, as the power of China and India is much more bigger. It is a fact that it will take a long time, but here in Asia they are rather optimistic about the next year. Asia is the place to be and where it will happen. Looking at the numbers, US has a population of 300 Milion and serving 4.9 million hotel rooms. (1.6% of the total population which can get a room). China, where is the current growth in the overall market have a population of 1.3 billion and only 0.13%, can be served with a hotel room. India has almost 120,000 rooms accounted for in the whole country. It is therefore to say that with the future econmic growth and the current population, their is allot of business to make in these countries.