CBRE releases insights on Asia Pacific tourism and hospitality trends in Q3-2024

Global real estate firm CBRE Group Inc released its Asia Pacific tourism and hospitality trends report for the third quarter of this year.

The quarter was characterised by a surge in bookings in Singapore thanks to large-scale events held in the country throughout the quarter; the way Japanese tourism got a boost from a weaker yen; and new supply coming into the Maldives.

The report highlighted these three nations and also offered possible insights as to how else current trends may evolve as the year draws to a close.

Singapore: concerts and races draw tourists in

Singapore’s strong events and concerts scene, headlined by Taylor Swift and the Formula 1 season, continued to ensure the buoyancy of the hospitality sector in the country for much of the quarter. 

To date, the country’s luxury segment remains the top performer, with the strong return of mainland Chinese tourists underpinning demand. 

However, with operational costs rising, investors are looking more closely at both limited-service assets and conversion opportunities.

Japan: banking on a weakened yen

Japan remains one of the world’s most popular international tourist destinations, aided partly by the weak yen, which makes the country especially attractive from a cost perspective. 

Tokyo, Osaka, Kyoto, Fukuoka, and Okinawa remain the country’s top destinations, with ADRs in these markets up 25 percent year-on-year.

While the recent appreciation of the yen may rein in the recent explosive growth of foreign tourism, domestic demand should offset any weakness following a period of strong wage growth, which has boosted local spending power.

The Maldives: shifting traveller preferences

The Maldives continues to witness stable tourism inflows and hotel performance. 

To increase tourism, the Malé-Velana International Airport (MVIA) and Hanimadhoo Airport are receiving extensive upgrades to accommodate an extra 8.8 million passengers combined. 

With some new supply coming to the market, and a greater preference for guest houses over traditional hotels, hotel owners are increasingly considering refurbishment and rebranding exercises to enhance value.