The recently concluded IMF/World Bank meetings have given the hotel industry many reasons to smile.
According to the Jones Lang LaSalle Hotels, both occupancy rates and room rates rose significantly over the past two months compared to June.
However, over the longer term, Jones Lang LaSalle says some 20,000 hotel rooms are needed to support the government’s vision of doubling tourist arrivals to 17 million by 2015.
Although held over two weeks, the IMF/World Bank meetings had a significant impact on the hospitality sector for a much longer time.
According to Jones Lang LaSalle Hotels, average occupancy rates hovered at 90 percent during the past two months compared to 83 percent in June, and room rates climbed some 10 to 20 percent during this time.
As an indication of things to come, when the integrated resorts are completed sometime in 2009 and the government’s intention to double tourist arrivals to 17 million people by 2015, Jones Lang LaSalle says hotel room supply needs to be increased.
“If you double the number of tourist arrivals, you probably have to double the number of hotel rooms. At the moment, we have 30,000 gazetted rooms, so you would require another 30,000. According to what we have been tracking so far, the new supply situation will probably bring on about 10,000 till 2010, so we are still short of another 20,000 rooms,” said Chee Hok Yean, EVP, Jones Lang LaSalle Hotels.
For now, the ground work is being laid for more hotels to be built.
The government expects to launch more hotel sites in next year’s Government Land Sales programme.
Source: Channel NewsAsia, 11 October 2006