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Global Hotel Market Sentiment Survey
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Positive Market Sentiment Slows as Economic Uncertainty Continues to Bite Singapore, September 14th 2011 Results from the latest edition of the Horwath HTL Global Hotel Market Sentiment Survey show that although hotel operators in all regions of the world apart from Africa and The Middle East continue to believe that the outlook in operating performance is positive, that sentiment has less conviction than it had six months ago. The survey, carried out every six months by Horwath HTL the world’s foremost firm of hospitality consultants, concentrates on four key questions to gauge the level of industry feeling in the short term, and the key indicators driving the sentiment. Oceania and the Asia Pacific, regions that were the least affected by the Global Financial Crisis, remain the most optimistic with survey scores of 38 and 22, albeit down from 58 and 52 six months ago. Europe and American sentiment remains positive but weak, but Africa and the Middle East, which has been so affected by Geo-Political unrest and the so-called Arab Spring, has sunk into negative territory. Outlook for the second half of 2011 appears more optimistic. Interestingly, hoteliers in Europe and Africa and the Middle East indicated occupancy is expected to be the driver of growth in the second half of 2011. Hoteliers in Oceania and the Americas are of the opinion Average Room Rate will drive growth in the second half of 2011. Hoteliers from the Asian hotel market are expecting similar growth in occupancy and Average Room Rate in the second half of 2011 resulting in positive growth in total revenue. However, with so much Economic uncertainty in the News, it remains to be seen whether that all important corporate and MICE segment feels confident enough to start booking in volume again in the second half of the year. Damien Little who heads up Horwath HTL in China, and is the founder of the survey said, “The results are very much in line with what our own experiences on the ground are showing us. After three hard years since the initial crash of the global financial crisis, hoteliers hopes for sustained recovery are still there, but have been tempered with a realisation that the way back will be longer than hoped for. This is evident in the softness in Average Rate growth, which is indicative of a wider lack of confidence in Corporate Business Travel. Other challenges for Hoteliers in the first half of the year have compounded business confidence, with the earthquake in New Zealand quickly followed by the Tsunami in Japan causing huge disruption. In North Africa the political turmoil has hit the key markets hard, and continues to do so, and in the USA problems over the debt ceiling have added to the wider issues posed by the financial crisis. The second half of the year looks likely to improve slightly, but hoteliers are under no illusion that the road ahead is still uncertain” Overall results at a glance: (-150 - +150)
About The Survey Horwath HTL has created an index to formulate an overall average sentiment score from all the survey scores. Points are assigned to each response and compounded accordingly. The index uses a scale of negative 150 to positive 150 in which negative 150 indicates a state of absolute pessimism, zero indicates unchanged expectations and plus 150 indicates a very optimistic outlook. The survey focuses on four questions, the performance of your local market, the performance of your own property, the effect of various macro-economic drivers and the effect on four key market segments. About Horwath HTL Horwath HTL is a member of Crowe Horwath International, a professional association of accounting and management consulting firms founded in New York in 1915. Crowe Horwath International is currently ranked among the top ten international professional service groups with offices in close to 400 cities in 88 countries. Horwath HTL (Hotels Tourism and Leisure) is one of the pre-eminent consulting specialists in the hotel, tourism and leisure industries, providing unequalled experience and expertise for client projects around the world through a combination of detailed local knowledge and international understanding. Horwath HTL is currently the world's largest consulting organization specialized in the hospitality industry, with 50 offices in 37 countries.If you have any questions, please contact Damien Little, Director of Horwath HTL in China on dlittle@horwathhtl.com or James Chappell, Global Marketing Director at jchappell@horwathhtl.com | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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