2007 Deloitte Global Hotel Ranking Report

2007 Deloitte Global Hotel Ranking Report

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It seems 2007 was another massive year for travel as the Deloitte Global Hotel Ranking Report clearly shows. With a 6% increase in global travel over the previous year, 2007 has overtaken tourism forecasts for the fourth year in succession. It seems that despite the property gloom people are still travelling in huge masses.

The report usually measures the global ranking index (GRI) and the revenue per available room (revPAR) of hotels in countries and cities all around the world. With the lifting of a year long restrictions in March this year, US and European airlines can now fly to any destination within the two countries, further increasing the potential for growth.

Overall, the best performers of hotels were in South and Central America with revPAR growth of 19.4%. This was closely followed by the Middle East with 16.9% and Europe in third at 15.8%.

Interestingly enough, more than 50% of all world travellers chose Europe as their destination of choice. Let’s take a closer look at the world and how this has occupancy has affected tourism.

RevPAR Global Ranking Index 2007

RevPAR GRI RevPAR results – US$ RevPAR results – euros
City Ranking Change
to 2000
2007
absolute
% change
to 2006
% change
to 2000
2007
absolute
% change
to 2006
% change
to 2000

Venice

1 +0 265

22.0

50.7 192 12.2 -0.3

Paris

2 +2 249 23.2 75.1 180 12.9 15.7

Moscow

3 +82 244 23.5 225.8 176 13.1 115.8

London

4 +1 224 18.5 53.4 162 8.9 1.9

Dubai

5 +26 218 17.2 161.7 158 7.2 73.8

Rome

6 +0 202 9.1 62.7 146 0.2 7.7

Geneva

7 +0 199 19.9 88.0 145 10.1 25.6

Mumbai

8 +28 195 47.3 130.0 141 34.6 34.9

Amsterdam

9 +0 185 12.4 53.2 133 3.1 1.3

Rorence

10 -4 175 14.5 39.4 127 5.3 -7.8

Hong Kong SAR

11 +3 172 6.7 64.5 125 -2.3 8.8

Milan

12 +12 168 12.8 72.5 122 3.1 14.5

Barcelona

13 +4 168 18.3 61.7 122 8.7 7.5

Doha

14 +46 164 -10.2 154.6 119 -17.6 68.7

Abu Dhabi

15 +79 162 26.0 191.4 118 16.0 94.4

Muscat

16 +110 155 35.9 256.9 113 24.4 137.3

Zurich

17 -1 155 18.1 45.6 112 8.3 -3.2

Sudney

18 +15 154 23.5 72.4 111 13.2 14.3

Tokyo

19 -1 153 2.8 -12.3 111 -5.7 -41.7

Istanbul

20 +12 152 22.1 77.9 110 12.4 17.8
Source: Hotel BenchmarkTM Survey by Deloitte

Occupancy Global Ranking Index 2007

Occupancy GRI Occupancy results
City Ranking Change
to 2000
2007
absolute
% change
to 2006
% change
to 2000

Perth

1 +31 85.1

1.6

10.2

Panama

2 +146 84.7 11.6 58.8

Dubai

3 +27 84.5 1.5 11.6

Brisbane

4 +65 84.3 -0.4 15.9

Hurghada

5 +12 83.9 11.6 7.5

Singapore

6 +12 83.8 1.6 4.9

Abu Dhabi

7 +42 83.5 0.4 14.5

Gatwick

8 -7 83.3 1.2 -4.1

Melbourne

9 +17 83.1 0.1 8.4

London

10 -4 82.8 -0.1 1.7

Hong Kong SAR

11 -2 82.4 -1.3 2.3

Hearthrow

12 -4 82.4 -0.9 2.6

Sydney

13 +13 82.4 5.1 11.7

Adelaide

14 +3 81.9 1.5 9.4

Belfast

15 +26 81.8 1.7 9.2

Amsterdam

16 -14 81.3 -2.3 -5.0

Cairns

17 +3 80.2 -1.0 3.6

Hanoi

18 +141 80.2 0.0 109.0

Edinburgh

19 +35 79.3 0.1 9.4

Zurich

20 -10 79.1 -1.2 -3.9
Source: Hotel BenchmarkTM Survey by Deloitte

Asia Pacific

Within the Asia Pacific region were two major contenders, China and India. With many aircraft carriers offering low cost travel, tourists are making the most of this and flock to the two countries in huge numbers.

With a total input of 185m tourists in the whole Pacific region, it is no wonder to see high occupancy percentages throughout the year. Most were between 69 – 76%.

With the preparations to the Olympic Games, China experienced a huge domestic growth by attracting massive overseas investments. On average, rooms in China were U$ 127 per night, up by 7.5% from the previous year, but Hong Kong topped it all with an average of U$ 209 per room.

Compared to this Beijing’s revPAR was U$ 102, a rise of 9.1%.

In Japan, there was also an increase of tourists, 13.8% to be exact. This totaled the numbers of tourists to 8.3m. Tokyo is still considered a strong Market in North East Asia, taking second place behind Hong Kong with a revPAR of U$ 153. Average room rates however rose by 5.5% to U$ 200.

South Korea added U$ 9 to its revPAR finishing the year at US 143.

Hotel performance in Asia Pacific 2007 vs 2006

Occupancy (%) Average Room Rate (US$) RevPAR(US$)
2007 2006 % change 2007 2006 % change 2007 2006 % change
Asia Pacific 71.8 71.7 0.1 133 118 12.8 95 85 12.9
North East Asia 71.1 73.0 -2.6 131 125 5.0 93 91 2.3
South East Asia 70.9 68.1 4.1 109 91 20.2 78 62 25.1
South Asia 69.1 68.7 0.6 206 163 26.4 142 112 27.1
Oceania 76.1 75.7 0.6 143 122 17.2 109 92 17.9
Source: Hotel BenchmarkTM Survey by Deloitte

Mumbai climbed five places in the top 20 revPAR GRI to 8th place. RevPAR in the city soared to U$ 195, a whopping 47.3% increase. This is entirely made possible due to increased capacity at Mumbai’s airport and a shortage of rooms city wide. This shortage led hoteliers to push their room rates higher (they currently stand at U$ 285). The rest of the country has followed suit on this trend which led to further growth in all of India.

Vietnam has also seen nice growth with a 26.3% increase in Hanoi to U$ 137.

But the biggest “coup” was achieved down under by the Australians who, thanks to a bold marketing campaign have seen a huge influx of tourism. The eye catching slogan “so where the bloody hell are you?” raised the country’s profile and is responsible for the 5.6m travellers.

A lot of Chinese tourists make their way down under which can be attributed to an increased wealth in the Chinese population. Especially those who were able to cash in on the Olympic Games.

All major cities in Australia saw double digit revPAR growth in 2007 with Perth leading the occupancy ranking (85.1%). Overall, a total of 4.5m passengers passed through Perth’s airport in 2007. Room rates in Melbourne were U$ 172 (up by 20.3%) and Sydney U$ 187.

Europe

Europe is clearly the favorite destination for more than 50% of the world’s globetrotters. With an increase of 19m people to a total of 480m in 2007 many tourists have taken advantage of Europe’s infrastructure. However, according to Deloitte’s report, this massive increase can be attributed to bigger numbers in low cost air travel.

In fact, seven of the world’s top ten tourism destinations are in Europe. Leading the pack is France, followed by Spain, Italy, UK, Germany, Austria and Russia.

The UK market increased by 15.3%. While the strength of the Pound resulted in a decline of US visitors, the strong Euro has resulted in traffic from closer shores instead. This resulted in five UK cities being in the top 20 occupancy GRI. London stands tall with a massive occupancy rate of 82.8%.

France, or Paris retains some of the highest room rates in all of Europe, at €232. Greece on the other hand has even higher average rates. Hotels in Athens had a revPAR result of €37 which was an increase by 116% from the year before.

Italy took the lead in the top 20 revPAR GRI for the fifth consecutive year with a revPAR of €192.

Israel managed to increase the total of new visitors by 24.3% despite the ongoing conflict with Lebanon.

Middle East & Africa

Top five Middle East Cities by revPAR growth 2007

Occupancy (%) Average Room Rate (US$) RevPAR(US$)
2007 2006 % change 2007 2006 % change 2007 2006 % change
Muscat 76.8 74.1 3.6 202 154 31.1 155 114 35.9
Riyadh 72.7 70.0 3.9 183 141 29.8 133 99 34.9
Hurghada 83.9 75.1 11.6 49 42 16.8 41 31 30.4
Alexandria 77.3 70.9 9.0 70 59 18.5 54 42 29.2
Luxor 65.1 58.6 11.1 41 36 14.2 27 21 26.8
Source: Hotel BenchmarkTM Survey by Deloitte

The Middle East managed to increase revPAR some 16.9% to U$ 108. Dubai has clearly taken the biggest chunk out of this cake, but neighboring emirates like Qatar are catching up. With 46m tourists stepping foot onto Middle Eastern soil in 2007, most of them visited Dubai and Abu Dhabi.

Dubai’s room rates are counted amongst the strongest in the world at U$ 258. Also, the occupancy rates tally around the 84.5%, which are also among the highest in the world, ranking the city top in both the revPAR GRI and the occupancy GRI.

South Africa is hoping to attract a wealth of visitors with the World Cup of 2010 and banking on some 10m in total. Average room rates stand at U$ 97.

Central & South America

Central and South America saw an influx of 11.1% and 8.1% of tourism in 2007. A new pact also enabled citizens of Colombia, Guyana, Ecuador, Peru, Paraguay, Chile, Brazil, Bolivia, Argentina, Venezuela, Suriname and Uruguay to travel freely across respective borders.

Another reason could be the votes of more than 100m people worldwide to place three of the seven wonders of the world in the region. With a great growth of revPAR 19.4%, Panama City took a huge surge forward. It is also the first ever Latin American city to feature in the rankings.

While Mexico only saw small increases from the year before, Mexico City still performed well enough with average room rates rising to U$ 178 (up by 6.4%).

In Brazil hotel performances were satisfactory overall. RevPAR in Sao Paulo went up by 27.8% to U$ 82. Rio de Janeiro’s room occupancy declined by 4.4%, but the average room rates rose by 18.4% to U$ 192.

Argentina saw an increase in arrivals by 11%. This was mainly due to a stable economy and favourable exchange rates. Buenos Aires experienced a revPAR increase of 14.4% and occupancy up by 1.7% to a total of 70.8%.

However, the fastest growing country in Latin America is Panama. The GDP was more than 10% last year and an increase of 27% in visitors during 2007. Panama City took centre stage with a 37.9% increase in revPAR to U$ 121. Also, the city’s occupancy rate increased to 84.7%.

International tourist arrivals by sub region (millions)

2007 2006 2000 %vs
2006
%vs
2000
2007
marketshare %
Asia Pacific 185 168 111 10 67 21
North East Asia 160 94 58 11 79 12
South East Asia 4 54 37 11 62 7
Oceania 11 11 9 0 22 1
South Asia 10 9 6 11 67 1

Europe

480 461 391 4 23 54

Northen Europe

56 55 43 2 30 6

Western Europe

155 150 140 3 11 17

Central/Eastern Europe

93 91 69 2 35 10

Southern/Mediterrannean Europe

176 165 139 7 27 20

Middle East

46 41 24 12 92 5

Africa

44 41 28 7 57 5
North Africa 16 15 10 7 60 2
SubSahara Africa 28 26 18 8 56 3

Americas

142 136 128 4 11 16

Central America

8 7 4 14 100 1

South America

20 19 15 5 33 2

North America

95 91 92 4 3 11
Caribbean 19 19 17 0 12 2
Source: World Tourism Organisation (UNWTO).

Photo Credits: Pargon(Flickr)