China Hotel Market Sentiment Survey: The Influence Of Coronavirus
Market sentiment in China has plummeted to a historically low score, with the degree of pessimism reflected across all regions in China. The China Hotel Market Sentiment Survey is designed to provide the China hotel industry with a quick assessment of the future market prediction. We have conducted the sentiment survey regarding the influence of the coronavirus outbreak in order to assess its impact on the market.
Market sentiment in China has plummeted to a historically low score, with the degree of pessimism reflected across all regions in China.
The China Hotel Market Sentiment Survey is designed to provide the China hotel industry with a quick assessment of the future market prediction. We have conducted the sentiment survey regarding the influence of the coronavirus outbreak in order to assess its impact on the market. The survey shows that most hoteliers believe that the hotel performance, occupancy and total revenue in particular, would be worse or a lot worse than last year. This is particularly hard because the original survey finished just before the outbreak and showed that sentiment was beginning to improve after several tough years
The five-question survey focused on the assessment of the duration and degree of the influence on the hotel market by the Coronavirus Disease 2019(COVID-19) outbreak, as well as the future outlook on occupancy, ADR and total revenue for the first half of 2020. To measure and compare hotel markets across different regions and cities in China, we created an index to formulate an overall average sentiment score from the survey data, so as to better reflect hoteliers' expectations toward the hotel market performance.
This survey covers 685 hotels from 28 provinces and municipalities.
Under this impact, the market sentiment index has plummeted to a historic low score, and the degree of pessimism is similar across all regions. Most hoteliers believe that the hotel performance, occupancy and total revenue in particular, would be worse or a lot worse than last year. The impact of the outbreak in January has resulted in the overall market sentiment score's dramatic decrease to -116, reaching a historic low point. Given that the minimum score is -150, the impact on market confidence is self-evident.
Half of the respondents believe that the impact of the coronavirus outbreak will last for 3 months. More than 90% of respondents expect that the impact will end within 6 months. Most hoteliers claim that the impact on hotel performances this time will be more severe than the impact of the SARS outbreak.
Looking at market forecasts and individual hotel performances, hoteliers in most regions believe that occupancy and total revenue would be worse or much worse than those of last year, but their view on ADR is relatively moderate. On a regional basis, the central and southern China markets have shown the most negative views as they are severely affected by the outbreak.
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