FHRAI Magazine - Federation of Hotel and Restaurant Associations ...

[ Report ]
Asia Report
Hotel Views 2012
Cushman & Wakefield have come out with their first edition of Asia Report
Hotel Views. Going forward, China and India have seen the most number
of hotel openings across the globe and continue to show the most robust
pipelines. Following are the excerpts of Hotel Views 2012 on Indian cities of
Delhi NCR and Mumbai
NCR – NATIONAL CAPITAL REGION
Economy
The National Capital Region (NCR) in India is a conurbation,
which encompasses Delhi, Gurgaon, Faridabad, Ghaziabad,
Noida and Greater Noida. With the resurgence of the Indian
economy, GDP of the NCR went up by 10.5% as compared to
10.3% in 2009 to 2010. The major contributors to this growth
are the tertiary sector, specifically: Real Estate, Hotels, Banking
and Insurance. The per capita income for 2010 to 2011 was US$
2,132, up 7.7% from 2009 to 2010. The per capita income in the
NCR is three times the national average. The NCR region, as a
whole has an unemployment rate of only 0.8% compared to a
national average of 9.4%. This is expected to decline given the
increased economic activity in the region.
in 2010 from US$ 178 in 2009. RevPAR also grew 14.9% in
2010 YOY. According to the latest figures from STR Global, in
Hotel Performance
Following the global economic downturn and the negative impact
on tourist arrivals of the attacks in Mumbai, the performance
of hotels in the NCR has shown an improvement in 2010.
Occupancy rates dropped from 74.5% in 2007 to 63.6% in 2009
before rising to 68.8% in 2010. ADR also increased to US$ 189
the first half of 2011, occupancy dropped by 2.3% to 65.7%,
whilst ADR went up by 1% to US$ 183. As new supply enters
the market, we would expect ADRs to be under pressure and not
reach pre-2007 levels. However, overall, hotel performances are
expected to improve steadily YOY.
Tourism Arrivals
Due to the global economic slowdown as well as the threat of
terrorism, tourist arrivals, both domestic and international,
dropped from 4.4 million in 2008 to 3.9 million in 2009. The
Commonwealth Games in October 2010 saw 75,000 visitors
arrive in Delhi. The increased capacity of the Delhi airport
has also resulted in an increased number of visitors. The total
number of arrivals rose from 26.1 million visitors in 2009-2010
to nearly 30 million visitors in 2010-2011. Of current demand,
nearly 67% are business travellers and 21% leisure travellers,
whilst the remaining demand is derived from MICE and other
segments.
36 FHRAI Magazine november 2011
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