Hotels in Asia feel pinch

HOTEL occupancy throughout Asia continues to show signs of distress in the wake of the coronavirus, according to figures released by STR this week.

Macao saw the steepest occupancy decline, plunging from 96% to just 3% within six weeks, from 06 Jan to 16 Feb, with luxury casino resort Wynn Macao losing around US$2.5 million a day.

The significant fall was brought on by the 15-day shutdown of casinos in the region, put in place on 04 Feb to curb the spread of coronavirus.

Hotel occupancy in Hong Kong fell by 64%, with occupancy rates now sitting at 25%, followed closely by Taiwan, which has fallen 59% to reach an occupancy rate of 26%.

These levels are in line with those seen during the 2009 global financial crisis, according to STR’s area director for the Asia-Pacific region, Jesper Palmqvist.

“With so much dependence on Chinese arrivals, it was anticipated that key markets around the region would see a negative impact from the coronavirus outbreak,” Palmqvist explained.

“In certain markets, we saw an almost immediate decline in occupancy levels in the early days of Feb.

“The impact will likely continue until containment is reported and recovery begins.”

According to the STR’s figures, Indonesia has felt “some” occupancy and rate impact in Bali, but not to the same extent as other Asian regions.

Thailand, on the other hand, has gained 4% in hotel occupancy rates, climbing to 58%, while Australia has seen an increase of 11% to reach rates of 73%.