The buoyant economic conditions today have caused hotel room rates in major Asian cities like Hong Kong and Singapore to become more expensive.
Corporate travel firm Hogg Robinson Group said the rates grew 3.1 per cent on-year in the first half of the year.
It added that the increase in rates would likely hit five per cent by the end of the year.
A stay in a Hong Kong hotel may cost US$304.66 on average. That makes it the most expensive Asian city for business travellers.
In a global hotel survey by Hogg Robinson Group, it found Hong Kong jumped from 10th position to become the third most expensive city in the world.
The other Asian cities with increasing room rates are Tokyo at 12th position and Singapore, which moved up 19 spots to 25th.
Moscow remains the most expensive city in the world with room rates at a whopping US$407 a night.
The survey also found traditionally expensive cities like Geneva, Hong Kong, Paris and New York make up the top five most expensive cities in the world for travellers.
Hogg Robinson Group executive vice president James Stevenson said: “If there are a lot of people coming into the region and demand is there, then obviously the supply has to meet it and rates have to go up”.
“It’s fairly basic economics. And the region is doing very well as said before the growth in terms of GDP,” he said.
“The region – Asia – is very much seen as the powerhouse (and) it’s moving forward. And that’s very much driving the hotel demand and the rates going up.”
Beijing however bucks the trend as it sees declining hotel room rates.
Prices are falling now after it had shot up by about 31 per cent during the 2008 Olympics.
Experts are not surprised that such international events usually cause rates to increase significantly.
“Shanghai has traditionally been a city where you have key exhibitions taking place. Again you have got (events like) Formula One (being held in) Shanghai,” Mr Stevenson said.
“It can be very difficult (at) certain times of the year. (In the) past (it was) very difficult to secure hotel rooms and if you could, the rates were often very, very high. (Room rates) did spike during the key conferences and events that were taking place,” he said.
Observers expect to see a similar price hike during the September F1 race in Singapore.
During the same period last year, Singapore’s room rates went up by 17 per cent on month to an average of US$153.20.
Source : Channel NewsAsia – 3 Sep 2010