Hoteliers throughout the world are unanimously
expecting declines in business performance for 2009 according to the
Horwath HTL Global Hotel Market Sentiment Survey.
In the face of the global economic downturn, it
is not surprising the results of Horwath HTL’s survey indicate a
tough year ahead in 2009. The survey ranked the global economic
situation as the number one factor negatively influencing the
market, followed by global stock market trends, and local economic
Mr. Damien Little, a Director for Horwath HTL
based in Asia said the timing of the first global sentiment survey
was a little unfortunate given the current economic crisis.
“The results are not unexpected and generally
there are little differences across regions, however, the survey
does highlight a few differences,” said Mr Little. “However, I do
think it sets up a good base of results for us to now compare the
improvement in market outlook in the subsequent surveys we will be
General market sentiment was on the pessimistic
side, with a global average score of negative 34.2. The only
region to achieve a positive average sentiment score is South
America, registering a score of 9.7.
On the other hand, hoteliers
in North America, which includes markets hugely affected by the
global economic downturn such as the USA and Canada, expected a
relatively bleak outlook in 2009 as the region registered a
sentiment score of negative 41.
Asian hoteliers held the most
pessimistic outlook for the year with an overall average sentiment
score of negative 41.2 with Japan (-74.1), Singapore (-64.3) and
Hong Kong (-52.7) the most pessimistic in the region.
top five countries (with a sufficient response rate) with the
highest sentiment scores were Indonesia (-4.3), South Korea
(-7.2), Norway (-20.3), South Africa (-20.9) and Mexico (-24.5).
Japan (-74.1), Slovakia (-68.4), Singapore (-64.3), Russia (-58.9)
and the USA (-54.8) rounded up the bottom five.
Hecker, Chairman of the Horwath HTL Global Committee said, “A
global sentiment score of negative 34.2 clearly indicates that
hoteliers across the globe are expecting declines in performance
in 2009. On average, hoteliers across the globe expect room
occupancy and average room rates to decline somewhere in the order
of five percent, resulting in an average 10% decline in RevPAR.”
Survey results where not all negative, as
hoteliers in Indonesia on average expected improvements in room
occupancy and average room rates, which based on survey results
should lead to RevPAR gains of somewhere around five percent for
Indonesian hoteliers foresee this as key cities such as
Jakarta – which has been experiencing low average room rates in
recent years – currently experiencing a positive rate correction.
The key resort market of Bali expects the strong performance
levels recorded in 2008 will continue through into 2009,
particularly in regards to room rate growth.
hoteliers were amongst the most positive in Europe, while Mexican
hoteliers had the most positive outlook in North America, with
both of these countries expecting, on average, increases to be
recorded in room occupancy, average room rates and total revenues
in 2009. South American hoteliers also expected improvements in
all three performance measures.
Josue Salcedo from Horwath
HTL Mexico believes that while Mexican hoteliers have estimated
some growth in performance for 2009, growth rates should decline
from that recorded in previous years. “This positive behavior is
influenced by the fact that Mexico is a non-expensive destination
(getting cheaper with the actual depreciation of the Mexican peso
against US dollar) along with the good tourism infrastructure in
place,” said Mr. Salcedo.
The corporate demand segment
achieved the lowest sentiment rating of the four key segments
surveyed (corporate FIT, Leisure FIT, Leisure Group and MICE) with
a global sentiment index score of negative 45.7. The corporate
market is anticipated to record the worst performance in 2009
across all regions except for Australia/Pacific and North America.
Hoteliers in Australia expect the MICE (Meetings, Incentive,
Conference & Exhibition) segment to be the worst performing demand
segment in 2008, while North American hoteliers on average expect
the Leisure Group segment to be the worst performing.
a negative outlook on the corporate demand segment is not
surprising in the current economic environment,” said Mr Little. “Most hotel markets around the world have already seen a
considerable decline in corporate business, particularly at the
5-star level, over the last five months. The results of the survey
show that hoteliers generally expect all demand segments to be
negatively impacted in 2009. Indonesia and South Africa were the
only countries with a neutral view on the corporate demand outlook
The Horwath HTL Global Hotel Market Sentiment
Survey Report will be available in 18 different languages and more
than 25 regional, country or city specific reports will be
The Horwath HTL
Global Hotel Market Sentiment Survey was conducted across 46
countries in 18 languages and received a total of 2,705 responses.
European hoteliers accounted for 43% of total responses,
Asian hoteliers 26%, while North America, South America,
Australia/Pacific and Africa accounted for 13%, 6%,
6% and 5% of total responses respectively.
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