Asia Pacific saw the largest decline in tourist arrivals of any region in the H1 2020, with visitors falling by 72% y-o-y. Domestic tourist demand has begun to take on a more prominent role, with several countries launching initiatives to promote local tourism in recent months.
Regional hotel occupancy fell by 15.6 percentage points to 54.5% in H1 2020, with markets reliant upon international arrivals recording severe declines. The near total shutdown in international travel also led to occupancy and ADR suffering drastic falls. Regional ADR declined by 13.7% y-o-y US$86.5 in H1 2020. RevPAR stood at US$49.6 in H1 2020, representing a drop of 29.3% y-o-y.
Asia Pacific hotel transaction volume stood at approximately US$4.3 billion in H1 2020, a fall of approximately 31% compared to the same period of 2019.
With the hotel sector more vulnerable than many other property sectors to the impact of measures to contain the pandemic – and many of these restrictions remaining in place - purchasing activity is likely to remain muted in H2 2020.