The global financial crisis would delay plans for as many as 90,000 new hotel beds in the Asia-Pacific region and pull back growth in revenue to single digits this year from 18% last year, a South China Morning Post report said.
It said hotels were bracing for a sharp slide in revenue per available room, or yield, in the fourth quarter, after 11.6% growth between January and August, quoting Alex Kyriakidis, Deloitte’s Global Managing Partner of Tourism, Hospitality and Leisure.
The worsening financial crisis, soaring fuel prices and rising construction costs were mitigating factors, Kyriakidis was quoted saying.
“Consumer confidence is starting to wane and companies are paring their travel budgets.”
China, troubled with an oversupply of hotel rooms in Beijing and Shanghai, recorded 47.1% growth in yield in August due to the Olympic Games.
The country is expected to see a 3% drop in yield this year, underscoring the impact of visa restrictions on foreign visitors since June and shrinking business travel.
According to Kyriakidis, hotel projects in the pipeline in the region would be delayed as developers find it tough to get financing and construction costs continued to rise.
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