Hard Times for Asian Hotel Industry

ANCHOR:
Asian hotels are starting to feel the pinch of the global credit crisis. Western visitors are dwindling, and are thinking twice about luxury travel.

STORY:
From the gambling mecca of Macao to China's bustling business capital Shanghai, Asia's tourism business has been booming.

But at a recent conference in Hong Kong, risk consultant Robert Broadfoot says the hotel industry is already feeling the pinch from the global credit crisis.

[Robert Broadfoot, Risk Consultant]:
"You are going to have a very sharp downturn in tourists both coming in and regional, so for the next 12 months it's going to be a period of real consolidation."

So as Western visitors start to dwindle, the key for the hotel industry will be to target regional customers.

And plans for the 90 thousand new hotel beds in Asia will be delayed as profits shrink down to single digit growth in some countries.

Hotel room prices have been on a rise in Asia for the past year despite a fall in occupancy. The good news for the consumer - there are bound to be bargains.

Hong Kong and Japan are better positioned to weather the storm. Experts say these countries can take advantage of the crisis to reposition themselves.

Category:

News & Politics

Tags:

• ntd
• asian
• hotel
• industry
• global
• credit
• crisis
• luxury
• travel
• tourism

[strunway]

just try to make 1% profit? instead of a £400 a night room be real and have a £100 a night room......

nah rip us off and destroy you business you greedy sluts!

the recession means that trafic in big hotels has reduced by 70! per cent! 70! thats so crazy! But do you think that the hoteliers would reduce the luxury costs to min??? nah they are HAPPY to let the business die that give us a discount.

why is that?

hey run at cost for 6 months??? no? please?? ....... nah destroy the business