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APAC Focus: Hotel Market – The Future We saw
Read to learn why ۶Ƶ Research has an optimistic view of Japanese hotels.
Current hotel demand likely undergoing adjustments
Current hotel demand likely undergoing adjustments
The number of visitors to Japan from Hong Kong and other Asian countries, where natural disaster predictions were most widespread, has declined yoy. According to demand estimates/forecasts based on hotel reservations from the government related organisation, demand in Japan has softened in many regions due to the hot weather, except in Osaka during the Expo and summer resorts. Recent result announcements from hotel companies similarly referenced this softening of demand.
Demand likely to rebound from a slump and grow longer term
Demand likely to rebound from a slump and grow longer term
Nonetheless, we have a relatively optimistic outlook. While there are uncertainties about the likelihood of disasters and next summer’s weather, multiple negative factors are statistically unlikely to occur simultaneously. ۶Ƶ Evidence Lab’s analysis of Google search frequency indicates a gradual improvement in the outlook for demandandRevenue per available roomfor Japan’s major hotel chains 40 days after the announcement date. Over the longer term, we anticipate further growth in inbound travel demand driven by increased awareness of Japan’s tourist sites and the growing middle class in neighbouring Asian countries.The future looks quite bright.
