Hong Kong, 11th October 2012
Japanese hotel performance has recovered to pre crisis levels, with occupancy and average rates showing positive signs of growth. This was the key message today at the 23rd Annual Hotel Investment Conference being held in Hong Kong at a panel session under the headline ‘Japan, down but not out’. The panelists included the Managing Director for Horwath HTL in Japan, Koji Takabayashi.
Joining the panel were Paul Kitamura from PSK Hospitality Advisory, Aya Aso, CEO of the Agora Hospitality Group, Yoshiharo Hoshino, President of the Hoshino Resort Co. Ltd and Tony Virilli President and CEO of Solare Hotels and Resorts.
In addition to a strong recovery in hotel operational performance, there has been a 20% increase in Hotel transactions year on year from 41 in 2011 to 50 in 2012. Other factors that were highlighted, as a boost in hotel nights was the establishment of several low cost carriers in Japan, which will increase domestic travel.
Koji Takabayashi said, “After a difficult year, it is clear that the hotel and tourism performance have bounced back remarkably quickly to 2010 levels and the increased level of transactional activity indicates investor confidence in the sector is rising as well. As 95% of tourism in the region is domestic, that fact that the Yen is so strong, something that acts as a disincentive to international visitors coming to Japan can be mitigated. In Japan, the demographic situation means that a growing aging population and young families with children continue to holiday closer to home which acts as a boost. Lastly, whereas much of the recovery has been centered in the three major metropolitan destinations, we expect the recovery to filter outside within 6-8 months. ”
Horwath HTL (Hotels Tourism and Leisure) is one of the world’s pre-eminent consulting specialists in the Hotel, tourism and leisure industries, providing unequalled experience and expertise for client projects around the world through a combination of detailed local knowledge and international understanding. Horwath HTL is currently the world’s largest consulting organisation specialised in hospitality, with 50 offices in 39 countries.
Horwath HTL is a member of Crowe Horwath International, a professional association of accounting and management consulting firms founded in New York in 1915. Crowe Horwath International is currently ranked among the top ten international professional service groups with offices in close to 586 cities in 108 countries.