Published on : Thursday, January 19, 2017
In 2015, the global luxury hotel sector continued to expand, backed by growing tourism and rise in affluent leisure and business travelers. Rising disposable incomes in China and India, presence of rich corporate culture and growth in the number of international events are expected to drive growth in the future. China is the largest luxury hotels market with room supply of 337,212 in 2015, followed by the US and Mexico, while Saudi Arabia was the fastest growing market at a CAGR of 12.5%.
In terms of occupancy rates, Japan led the race, followed by Hong Kong and Singapore. In 2015, Thailand was the fastest-growing market regarding guests in luxury hotels in the Asia-Pacific. Thailand’s inbound tourism reported a strong growth in 2015, after registering a sharp decline in international arrivals in 2014 as an aftermath of political unrest in the country. Thailand is also the second-largest market in terms of luxury room supply in Asia. With tourism rise in the Asia-Pacific region, hoteliers are planning to expand in the region. According to the UNWTO, the region witnessed 277 million international arrivals in 2015.
In Turkey, occupancy in luxury hotels decreased from 54.3% in 2015 to 47.5% in 2016 due to a decline in international arrivals as the country, as a result of terror attacks and security concerns.