Reports

The HVS Quarterly Macau Update

The past two years have been a difficult period for Macau since the Chinese President Xi Jingping announced a campaign to crackdown corruption and government official's lavish spending, triggering significant slumps in visitor arrivals and revenue growth in the tourism and gaming sectors in Macau. After two years as of 2017, Macau's resilience has been demonstrated through the growing visitor arrivals, hotel performance, and casino revenue, even after the detrimental Typhoon Hato.

By Christy Tung and Daniel Voellm

Macau

The HVS Quarterly Hong Kong Update

The third quarter of 2017 recorded the highest number of mainland Chinese arrivals since the same period in 2015, which bodes well for Hong Kong tourism. Safety concerns towards other destinations in the region and fewer headline-making news about Hong Kong are the key contributors to the increase in visitor arrivals from mainland China. Thus, the tourism and the retail sectors in Hong Kong enjoyed a steady recovery after a slump in mainland arrivals in 2016.

By Christy Tung and Daniel Voellm

Hong Kong (SAR)

HVS Market Pulse: Galveston, Texas

A weak energy sector has led to negative lodging fundamentals throughout much of the greater Houston region; however, one destination continues to illustrate its resilience. Galveston Island has realized year-over-year growth in total visitation in each of the past seven years following Hurricane Ike. While the rate of growth has slowed in recent years, no doubt somewhat affected by volatility in the energy sector, positive factors such as the recently completed expansion of the cruise terminal and the low gasoline prices have contributed to the growth in visitation numbers. This article will explore tourism trends on Galveston Island. Galveston Island is a 64-square-mile barrier island located 50 miles southeast of Houston. With 32 miles of beaches, a variety of historic neighborhoods, ample leisure attractions, and a multitude of festivals, the tourism industry remains a mainstay of the local economy. The relative affordability of the island, and the proximity to and size of the Houston metropolitan area contribute to the strength of this industry.

By J. Carter Allen, Managing Director, HVS

Galveston, Texas, United States

Russian Tourism To Slow Down In 2018 | tourism-review.com

The market of organized tourism, where the volume of bookings increased by more than 30% this year, is unlikely to show the same growth in 2018. According to experts’ estimates, the growth rate of the Russian tourism industry will slow down to 8-10%. There will be less noticeable growth in incomes of citizens and an increase in the calculation base. The return of the market to pre-crisis levels is unlikely to be achieved in the coming five years.

tourism-review.com

Russian Federation

Market Pulse: Hotel Demand Takes Flight at LAX

The LAX/El Segundo area has experienced robust growth in hotel demand in recent years, buoyed by increased passenger volume at LAX, the addition of new upper-upscale hotels, and sustained corporate demand from El Segundo and the surrounding markets. LAX is the second-busiest airport in the nation, behind Atlanta's Hartsfield International Airport, and the gateway to Southern California. The airport reached a new peak in passenger volume in 2016, which grew 7.0% over the prior year, and this trend continued through the September 2017 year-to-date period. The addition of Delta's direct flights from China on Boeing's Dreamliner and recent renovations at LAX have contributed to this growth.

By Jessica White, Consulting & Valuation Analyst, HVS

Los Angeles, California, United States

HVS Key Takeaways: CHICOS 2017

With U.S. and global attention focused on the Caribbean region following two record-breaking hurricanes that hurled through the region in September, the timing of CHICOS less than two months later opened the door to educated conversations within our industry. Interestingly, the dialog was hardly identifiable with the sensationalist news headlines and misrepresentations in the media that the Caribbean is somehow pulverized, as the 2017 Atlantic hurricane season winds down. Rather, attendees agreed that there is a need to educate the public on the geography of the region, and conversations delved into other directions including lender reactions, new design and code regulations, the effect on investor behaviors and holding periods, operational expenses, and capital improvement opportunities, among others.

By Kristina M. D'Amico, Senior Vice President - Director, Caribbean Region, Miami, HVS

Puerto Rico

North American Hoteliers End 2017 Strong with Healthy Gains Across All Travel Segments

As North American hoteliers enter the holiday season and round out the year, all travel segments are seeing a noticeable increase across the board in both average daily rates (ADR) and occupancy, up 1.4 percent and 3.9 percent respectively, during the fourth quarter of 2017, according to new data from TravelClick's November 2017 North American Hospitality Review (NAHR).

TravelClick, Inc.

United States

HVS Market Pulse: Indianapolis, IN

Indiana's capital city, Indianapolis, is the state's largest and the third-largest city in the Midwest. The city is a primary industrial, commercial, and transportation center for the Midwest, as the most centrally located of the largest 100 cities in the United States. The city is well served by four interstates, six railroads, an international airport, and a foreign trade zone. Historically known for its concentration of major manufacturing operations and logistics, the city has evolved as a hub for advanced manufacturing, digital technology, and life science/healthcare, as well as amateur and professional sporting events, which have brought Indianapolis broader recognition. The area is most well known for hosting the Grand Prix of Indianapolis and Indianapolis 500 each spring.

By Justin Kaminski and Jai Patel

Indianapolis, Indiana, United States

HVS: Hotel Bulletin Q3 2017 - Rising Costs Prove Challenge To UK Hotels Prompting Slowdown In ReVPAR Growth

Some investors could become increasingly wary of hotel assets as RevPAR growth plateaus amid predictions of labour shortages and increasing costs, according to Hotel Bulletin Q3 2017 published this week by HVS, AlixPartners, STR and AM:PM. The Bulletin reports that in Q3 2017 average growth in RevPAR (rooms revenue per available room) at 5% was the lowest level since Q1 2016, although the long-term outlook for UK hotels remains firmly positive.

By Russell Kett, Chairman at HVS - London Office, HVS

United Kingdom

In Focus: Madrid, Spain

This market snapshot provides an overview of the recent performance of the lodging industry in Madrid, Spain, in terms of demand and supply and analyzes past and future tourism trends. In writing these articles we utilise the expertise of HVS for each market combining our in-house data and research together with published information and interviews with opinion leaders regarding each of the examined destinations.

By Ezio Poinelli and Filippo Brivio

Madrid, Spain

China made 10% of tourists visiting Africa in 2016

The massive influx of Chinese tourists to Africa has in the recent years made a buzz, and it is for all possible reasons. After seven consecutive years of annual double-digit growth in spending, China continues to lead global outbound travel, reaching US$ 261 billion of Chinese travelers' expenditure in 2016, a 12% growth since 2012. Approximately 135 million Chinese outbound tourists travelled in 2016, out of which 10% were bound for Africa up from 3% in 2008.

By Josephine Wawira, Consultant, Jumia Travel

China

Wedding Tourism In Italy – 385 Million Euro Business | tourism-review.com

Katie Holmes and Tom Cruise in the Odescalchi Castle in Bracciano, Kim Kardashian with Kanye West at Forte Belverde in Florence, and Amal Alamuddin with George Clooney at the Aman Hotel on the Grand Canal. All these celebrities got married in Italy. Wedding tourism in Italy has been constantly growing. According to a research conducted by Massimo Ferrruzzi, founder of Jfc, there have been 7,147 weddings thus far this year. These weddings have generated a turnover of almost 386 million euros. Spending increased by 2.3 percent over 2016. With an average stay of 3.5 days per guest and 8.4 days for spouses, total arrivals reached 336,232, while attendances amount to 1.2 million. But there are several ways “to say ‘yes’” and Jfc’s study also analysed the three types of weddings and their economic impact.

tourism-review.com

Italy

Africa earned US$ 35 billion in international tourism receipts in 2016

International tourist arrivals in Africa went up by 8% in 2016 according to UNWTO Tourism Highlights 2017 Edition, which cites comparatively limited data available to date. This represents a strong rebound, following two years (2014 and 2015) of weaker performance due to various geopolitical, economic, and health challenges.

By Josephine Wawira, Consultant, Jumia Travel

Mediterranean Tourism Expects 420 Million Visitors By 2020 | tourism-review.com

The Mediterranean has become the main tourist zone of the world with 32% of international arrivals and 30% of revenues, according to conclusions reached during the 3rd edition of the Mediterranean Resort & Hotel Real Estate Forum (MR&H) which is being held in Barcelona. Mediterranean tourism market has been steadily growing. With the favorable expectations, the most positive predictions are that the Mediterranean region will receive 420 million tourists by 2020 thanks to several competitive advantages such as the temporality and the construction of transport infrastructures.

tourism-review.com

Market Snapshot: Asia Pacific 2017

Over the past twelve months from October 2016 to September 2017, HVS has noted close to 240 transactions across Asia Pacific worth approximately US$12 billion. In comparison to the same period the previous year, transaction volume in Asia Pacific has increased by almost 12% with China contributing to 40% of the hotel transaction volume in the region. The largest transaction recorded was the portfolio of over 75 properties under Dalian Wanda China.

By Victoria Chan, Kyu Kim, and Jeremy Teo

Uk Tourism Reports Increased International Visitors Number | tourism-review.com

United Kingdom is expected to end the year with 39.7 million international visitors, a record figure that represents a 6% increase over the previous year, when 37.3 million visitors were registered. Along the same lines, the expenditure generated by travelers will be around 29,000 million euros, an increase of 14%, according to forecasts by Visit Britain, the national tourism agency.

During the first six months of this year, UK welcomed 8% more international visitors according to Visit Britain.

The fall of the pound after the Brexit victory has favored tourism, although Steve Ridgway, chairman of the British Tourist Authority, has claimed that such a competitive industry cannot be built on a weak currency.

“Tourism is an economic "potential" and a major source of jobs across the country as it contributes £ 127 billion to the British economy,” said Ridgway.

tourism-review.com

United Kingdom

World tourism remains resilient despite global uncertainties’ knock down

With a 3.6% real GDP growth in Q1 2017, the world economy has remained strong, surpassing the earlier forecast at 3.5% for 2017-2018. This growth, according to Euromonitor International, is and continue to be highly driven by emerging markets which account for approximately 74% of the world's real GDP expansion, and a predicted share of up to 79% by 2020.

By Josephine Wawira, Consultant, Jumia Travel

OTAs dominate the Chinese travel market

Although the Chinese government has put pressure on China's big airlines to drive more direct bookings, pushing back against the tide will be a mammoth task as EyeforTravel's research finds that the sector has an Online Travel Agency (OTA) penetration of 77.5% for website bookings and 81.2% for bookings made through an app. In contrast, 17.6% of website users reported to EyeforTravel that they booked direct and a slightly lower 12.9% also went direct through an airline app.

Reuters Events (former EyeforTravel)

China

Summer Season Brought Recovery For French Hotel Industry | tourism-review.com

RevPAR, the average revenue per available room, increased by 5% in the super-Economy category and by 11% in the High-end category. This is what the In Extenso Tourism, Culture and Hospitality Industry Barometer indicated regarding the performance of France's hotel industry for the summer season of 2017.

Over the summer, foreign tourism recorded a big comeback in certain French destinations. Some hotel establishments and tourism professionals noticed the return of international tourists, especially in the category of individual tourists.

tourism-review.com

France