'Heavy Smog' Hinders Asia Hotel Performance

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After years of steady growth, the Asia Pacific region's hotel industry reported negative results for the first half of 2013, according to latest data from STR Global. 

In July, the Asia Pacific region reported a 5.2 percent monthly decrease in average daily rate to $116.36, a 5 percent decrease in revenue per available room to $80.99 and just a 0.3 percent increase in occupancy to 69.6 percent. 

"The negative growth is coming from countries such as Malaysia, Indonesia and the Philippines," Elizabeth Winkle, managing director of STR Global, said in the report. "One of the contributing factors was the heavy smog at the end of June and beginning of July which caused many tourists to stay away from these holiday destinations."

The only double-digit occupancy increase was reported in Ho Chi Minh City, Vietnam, which increased 14.6 percent to 64.0 percent.


Highlights from July's report (based on year-to-year comparisons; in local currency):

• Jakarta, Indonesia, fell 11.5 percent in occupancy to 65.2 percent, posting the largest decrease in that metric. Kuala Lumpur, Malaysia, followed with an 11.2-percent decrease to 70.4 percent.

• Three markets experienced ADR increases of more than 10 percent: Osaka, Japan (+11.6 percent to JPY11,174.34); Taipei, Taiwan (+10.4 percent to TWD5,605.19); and Sydney, Australia (+10.2 percent to AUD190.34).

• Seoul, South Korea, fell 8.1 percent in ADR to KRW191,126.27, posting the largest decrease in that metric.

• Five markets experienced double-digit RevPAR growth: Sydney (+15.7 percent to AUD157.71); Tokyo, Japan (+15.1 percent to JPY13,005.85); Melbourne, Australia (+14.0 percent to AUD147.48); Auckland, New Zealand (+13.7 percent to NZD93.30); and Osaka (+13.5 percent to JPY9,463.24).