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The hotel sector continues to grow as Asia Pacific tourism is expected to fully recover in 2024, according to PropertyGuru’s tourism news roundup. Hong Kong is also looking to reinstate its 3% hotel tax to boost revenue in 2024, while the extended stay accommodation market is booming.
Asia-Pacific tourism nears full recovery in 2024, driven by hotel sector growth
A new CBRE study published in the World Property Journal finds that institutional investors are increasingly looking to Asia despite tourist arrivals to major destinations remaining at 70-80% of pre-pandemic levels. The company is said to be attracted to prime hotel assets in tier-one markets in the Pacific region.
“(a) We expect intense competition among investors for the best hotel properties across the Asia-Pacific region given the limited supply of high-quality assets,” said Asia-Pacific Investor Thought Leadership. said Dr. Henry Chin, Global Director and Head of Research. “Despite the uneven recovery in tourism in the region, the core asset and resort markets of Japan, Singapore, Australia and South Korea continue to attract strong interest.”
Hong Kong Budget 2024: City aims to reinstate 3% hotel tax to increase revenue
Hong Kong will resume collecting a 3% hotel occupancy tax from January 1, 2025, Finance Secretary Paul Chan said on Wednesday when presenting the budget for next financial year.
The minister said the tax would account for less than 1% of Hong Kong’s guest spending, but would generate about HK$1.1 billion in revenue for the government annually, according to Hong Kong FP news agency.
Under the Hotel Accommodation Tax Ordinance enacted on July 1, 1966, hotel guests in Hong Kong were subject to a levy of 2 percent of their room rate. Later, the tax was raised to 3%, but was exempted from July 1, 2008.
Strategies for success: ensuring profitability in the extended stay sector
The extended stay lodging market is booming, with the sector projected to reach $166.5 billion by 2032. As more individuals and businesses adopt flexible working arrangements, there is strong demand for accommodation that supports mobile lifestyles and offers better rates than traditional short-term accommodation. -Stay at a hotel.
However, when it comes to marketing, operating, and revenue management for extended stay properties, there are distinct differences between them and traditional hotel rooms, and some challenges must be overcome.
In The Hotel Conversation report, consultant Tracy Dong lists strategies for success in the extended stay space.
This article was written by Property Report editors. For more information, please contact us via email: [email protected].
