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Deloittes annual hospitality report

Deloitte's global annual survey into hospitality trends is now out.

The report shows that, despite the economic slowdown, many cities across the world achieved strong hotel performance. Six cities secured places on all three top 20 ranking tables (occupancy, average room rate and revPAR) including New York, Abu Dhabi, London, Dubai, Paris, and Tel Aviv.

Hotel performance was a tale of two halves. During the first half of 2008, most world regions had reported double-digit growth in U.S. dollars as hoteliers seemed to be surviving the global economic crisis. However, from the summer onwards, consumer confidence dropped and tourism started to suffer. The final quarter of 2008 saw revPAR in many regions fall into negative territory. At year-end 2008, Central and South America and the Middle East were the only regions to turn double-digit revPAR growth, up 14.5 percent and 18.3 percent respectively, while Asia Pacific and Europe saw revPAR growth of less than 2 percent in U.S. dollars. At the back of the pack was North America, with a 1.6 percent decline.

Europe stole the show with 10 spots out of the top 20 on the average room rate table and seven places in the revPAR top 20. Despite this strong showing on the ranking tables, hotel performance across Europe did slow as the economic crises worsened and ended the year in negative territory, down 5.1 percent to €70.

According to the United Nations World Tourism Organisation, the first half of 2008 saw international tourist arrivals rise 5 percent. However, growth moved into negative territory in the second half of the year (down 1 percent), resulting in overall growth of 2 percent for the year. Despite growth being slower than the 7 percent achieved in 2007, an extra 16 million people travelled around the world and a new record was set of 924 million worldwide tourist arrivals.

 

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