The Asian hotel market is slowly recovering due to the reopening of international travel and the lifting of quarantine restrictions.
Consulting firm Colliers said, Asia's hotel market in the first half of 2022 is expected to be comparable to that of 2021. However, in the second half of 2022, the market will witness a sustainable recovery as international tourism gradually returns to normal activity.
Tourist destinations that have lifted quarantine restrictions are most likely to make a strong comeback. In which, resort tourism will take the lead, followed by official tourism and MICE tourism (tourism combining conferences, seminars, exhibitions, events, and rewards), especially in markets with strong domestic demand.
According to Colliers, increased occupancy will reduce room rates, although many global hotel markets have seen room rates return to pre-pandemic levels. Constraints in hotel supply, materials and labor have forced hoteliers to keep prices unchanged, it also means that visitors must be willing to pay this price if they want to experience good services.
Colliers recommends that hoteliers develop more efficient and dynamic business models that are flexible enough with fixed costs but still optimize operations and business. They also need to review the operation (including opening times) of items in the hotel, such as restaurants, bars, spas, etc. and consider whether to switch the function of some items to increase revenue and diversify services.
In addition, the adoption of digitalization and technology, which had only emerged before the pandemic, is becoming increasingly important, especially when the factors of health and hygiene have now become the top concern of every traveler. Future tourists will also be more demanding with regard to space issues, sustainability standards and ESG (environmental, social and governance standards system). All these trends need to be considered in the near future. At the same time, human resources working in the hotel sector need to be re-engaged and trained in more skills to adapt to new conditions.
Meanwhile, entertainment activities expected to expand in Asia as governments seek to expand revenue streams. In the past, few people thought that casino resorts would flourish in the Middle East and Thailand. For now, even the Philippines' overseas casino operators are returning to their homeland to capitalize on the rising market trend.
Overall, the operation of various types of entertainment will need more time to achieve certain success due to regulatory and policy issues in Asia. Revenue outlook for 2022 remains moderate and may take until 2025 to return to pre-pandemic levels. In which, Cambodia is forecasted to be Asia's top performing market.
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