baltic states and belarus real estate market review - Colliers

Real Estate Market Review 2011 | Belarus Hotel Market
Tourist activity by
countries
Source: National Statistics Committee of the
Republic of Belarus
1%
2% 2% 5%
3% 4%
2%
4%
10%
Russia
Other Countries
Turkey
Germany
Poland
67%
Italy
Latvia
Lithuania
Ukraine
United Kingdom
Dynamics of the average
occupancy rate in Belarus
and Minsk
Source: National Statistics Committee of the
Republic of Belarus, Colliers International
60%
shown readiness to participate in the
development of 3 - 5-star hotels in Belarus.
Interest in the operators market has been
shown by such international chains as Vienna
International, Accor Group, Amara Hotels,
Buddha-Bar Hotels as well as many local and
Russian operators are interested in hotels in
regional centres of Belarus. In 2010 several
deals were made with small regional hotels.
DEMAND AND rates
In 2010 there was a significant increase in
the number of tourists that visited the
Republic of Belarus. The increase of tourists
in 2009 compared with 2008 was just
2.5 per cent, but 2010 saw surging growth
on 2009 reaching 26 per cent. The greatest
role was played tourists from Russia, with
numbers increasing by 43 per cent on the
number in 2009. Tourists from Russia mainly
came to visit health resorts. The increase in
tourists from countries outside the CIS was a
modest 3 per cent.
The increase in tourists numbers was caused
not only by recovery of economies in
neighbouring countries, but also by due to
major international sport and cultural events,
such as the Junior Eurovision Song Contest
was held in Minsk in 2010.
Public authorities are actively working to
improve the image of the country. In
November, 2010 the Belarusian Tourist
Information Centre was opened in Warsaw.
Another initiative of tourism development is
the ceasing of licensing for tourist services
since 2011.
The majority of tourists visiting Minsk come
from neighbouring countries. Tourists from
Poland and the Baltic countries are mostly
interested in educational tourism (tourism
focused on education, such as visits to
museums and historical sites). Tourists from
Russia commonly enjoy the services of
Belarusian health resorts. With the
commencement of new flight routes, the
number of tourists arriving from the Middle
East region increased.
Rates for hotel accommodation services
remained at approximately the same level
relative to 2009. This is due to both the weak
competition in the market and to fluctuations
of the EUR relative to the Belarusian currency
(The Belarusian Rouble).
OCCUPANCY
In 2010 the increase of hotel guests in
Belarus was 10.5 per cent. This figure is less
than might be expected considering the
significant increase in tourist flow. This is
due in part to a considerable change guest
structure. Currently foreign guests account
for 61 per cent of the total number of guests.
The number of local Belarusian guests
decreased in 2010 due to the expanding
market of short-term rental of flats and
inflexible pricing policies of most hotels in
Minsk.
The average occupancy rate for hotels in
Belarus, according to Colliers International
data, is about 45 per cent. The hotel
occupancy rate in Minsk is about 52 per cent,
exceeding occupancy in other regions by
5 - 7 per cent.
During large-scale sporting, cultural and
business events Minsk hotels suffer a chronic
supply shortage being almost completely
occupied. In these times this demand is
satisfied by hotels in suburbs and flats
offered for short-term rent.
The average hotel stay duration in 2010 was
2.6 days decreasing from 2009 figures by
7 per cent.
The total revenue of Minsk hotels from
accommodation services increased by
26.7 per cent year on year, amounting to
41.3 million EUR.
55%
50%
45%
40%
2005 2006 2007 2008 2009 2010
Minsk
Belarus
Average rates per day in Minsk hotels
*EUR per night VAT incl.
Source: Colliers International
Stars Standard Room Double Standard Deluxe Apartment
5-star 205 - 265 205 - 310 273 - 365 1,073 - 1,150
4-star 132 - 136 151 - 177 217 - 227 579 - 581
3-star 47 - 55 63 - 77 121 - 141 156 - 453
CONTACTS: ANDREY PAVLYSHKO - a.pavlyshko@colliers.by l ANDREY ALESHKIN - a.aleshkin@colliers.by
Colliers International | p. 94