The health of India’s hotel industry is returning as data from STR Global, the leading provider of market information to the global hotel industry, shows a concerted upward trend and recent positive year-on-year growth in revenue per available room (RevPAR).
India had previously experienced 14 months of RevPAR declines. After years of double-digit growth, the worldwide economic downturn and the tragic terrorist attacks in Mumbai led to performance declines and double-digit misery.
But December 2009 and January 2010 saw a return to significant year-on-year increases, in large part due to favourable comparisons to the weak performance posted in the previous year. The recent results also were boosted by a 21-percent rise in international tourist arrivals, which highlights an overall quarterly increase of 6.9 percent after four consecutive quarters of year-on-year declines. (Source: UNWTO World Tourist Barometer)
uch improvement in international tourism arrivals has come as fears about the spread of the H1N1 flu epidemic have begun to fade. The impact of terrorism also is lessening despite the recent bombing in Pune in mid-February in which at least nine people died. However, several countries, including the U.K., the U.S. and Australia still have issued strong warnings to their citizens, urging them to observe high vigilance and to keep a low profile if visiting India.
Factors working in favour of India’s hotel market include forecasted economic growth of 8.5 percent ± 0.25 percent for 2010-2011 (Source: Ministry of Finance, Economic Survey 2009-2010), the Commonwealth Games hosted by Delhi during October, and the trial-run of a “visa on arrival” scheme for visitors from Singapore, Finland, New Zealand, Luxembourg and Japan who plan trips on short notice.
“Whilst the prospects for India appear promising, make no mistake the last year has been a difficult one”, said Elizabeth Randall, managing director at STR Global.
The table below shows the extent of these difficulties with data taken from STR Global’s Indian database of 240 hotels representing more than 35,000 hotel rooms.
About STR Global | STR Global provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR Global is part of the STR family of companies and is proudly associated with STR, RRC and HotelNewsNow.com. For more information, please visit www.strglobal.com
Friday 23 July 2010 | The European hotel industry posted mixed results in year-over-year metrics when reported in U.S. dollars, euros and British pounds for June 2010, according to data compiled by STR Global. “The first half of 2010 showed again a split across Europe in performance”, said Elizabeth Randall, managing director of STR Global.
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