Report Overview
This report, a market sizing of the Asia-Pacific accommodation sector, continues Skift Research’s effort to size the global travel industry. It builds upon our earlier U.S.accommodation sector and Europe accommodation sector reports and gives an Eastern perspective on the subject.
Skift Research estimates that the accommodation sector in APAC generated$186 billion of revenues in 2019, a 4.7% compound annual growth rate (CAGR) since 2008, the earliest year in our analysis. As a result of the pandemic, we estimate that the sector suffered a 50% year-over-year revenue decline in 2020 to $94 billion. The sector grew 26% to $118 billion in sales in 2021, and we expect it to grow another 38% to reach $163 billion in 2022, still 12% below 2019 revenues.
The fastest growing segment of accommodations in APAC has been short-term rentals. The sector grew nine times faster than hotels between 2008 and 2019. Unlike in the U.S. and Europe, data shows that the revenue for hotels and STRs suffered alike in 2020. As per our analysis, hotels are expected to recover faster than STRs in 2022.
In addition to these topline estimates, this report includes an analysis of, and estimates for, key hospitality performance indicators such as revenue per available room, average daily rate, and occupancy rates for hotels in the top 10 APAC countries.
What You'll Learn From This Report
- APAC accommodation sector market size estimates, by hotel sector and short-term rental sector, 2008–2022E
- APAC hotel sector revenues of 10 key countries, 2008–2022E
- APAC hotels size and scale of companies of key countries, 2008–2019
- APAC hotels key performance indicators of key countries, 2008–2019
Executive Summary
International and domestic travel were booming in Asia-Pacific (APAC) prior to Covid-19, largely driven by an increase in GDP per capita, a growing middle class, and domestic spending. Travel restrictions led to a cumulative 94% decline in international arrivals to APAC during 2021 as compared to 2019. However, countries in the region are expected to experience a fast pace of recovery in the second half of 2022.
Skift Research estimates that the accommodation sector in APAC generated $186 billion of revenues in 2019, a 4.7% compound annual growth rate (CAGR) since 2008, the earliest year in our analysis. As a result of the pandemic, we estimate that the APAC accommodation sector suffered a 50% year-over-year revenue decline in 2020 to $94 billion. The sector grew 26% to $118 billion in sales in 2021 and we expect it to grow another 38% to reach $163 billion in 2022, still 12% below 2019 revenues.
The fastest growing segment of accommodations in APAC has been short-term rentals. The sector grew nine times faster than hotels between 2008 and 2019. Unlike in the U.S. and Europe, data shows that the revenue for hotels and STRs suffered alike in 2020. While revenue for hotels decreased by 50%, revenue for short-term rentals decreased by around 45% in 2020. Furthermore, bookings data shows that hotels are expected to recover faster than STRs in 2022.
The ten largest markets for hotels in APAC are, in order (based on 2019 revenue data): China, Japan, Australia, India, Indonesia, South Korea, Turkey, Thailand, Singapore, and Malaysia. Collectively, the top three markets themselves represented $94 billion in sales, 55% of the total APAC hotel market in 2019.
Unsurprisingly, China has the largest number of hotel companies – or enterprises, the term we use throughout the report in the region given the sheer size of the country, followed by Thailand, Japan, Indonesia, Australia and Malaysia. On average, each enterprise in APAC owns two properties – establishments, with the exception of a few countries.
On average, occupancy rates for the largest countries in APAC have ranged from 55% to 60% between 2008 to 2019, except for Japan and Singapore where the occupancy rates of hotels were as high as 80% on average for the same time period. Average Daily Room Rates of hotels in all countries, except Australia and Japan which were higher, hovered in the range of $55-$65 between 2008 and 2019. Pricing power was the biggest driver of RevPAR during this period.
APAC Accommodation Sector Market Size
International travel was booming in Asia-Pacific (APAC) prior to Covid-19. From 2010 to 2019, international arrivals grew at an average annual rate of 6.3%, from around 208 million arrivals in 2010 to more than 360 million by the end of 2019. With growing GDP per capita and consequently consumer spending, domestic travel was also flourishing in the region. Industry growth was largely driven by a growing middle class in the region and generated tens of millions of jobs to form an integral part of the overall economic growth for countries across the region. However, the pandemic halted international travel and has had a devastating impact on tourism destinations and businesses.
Travel restrictions led to a cumulative 94% decline in international arrivals to APAC during 2021 as compared to 2019, the biggest decline in international arrivals globally. International arrivals between January 2022 and March 2022 remained 93% below 2019 levels for the same period. At present, while countries like Australia and Singapore are opening up fast, countries like Japan are still working with corridors and China is still largely closed. However, overall international travel is expected to pick up in the remainder of the year.
The accommodation industry, in line with the overall industry, also registered massive losses as a result of the pandemic. In 2020 and 2021, fluctuating demand, revenue loss, reduced staff, and rising costs tied to public health measures were among the multiple challenges faced in the accommodation sector in the region. Small businesses suffered most, with many lacking the capital to service fixed running costs. However, accommodation providers adapted their business models by adopting contactless and physically distanced services or function as quarantine facilities. Some developed new businesses, such as food delivery.
Despite challenges and the need to alter business models in the short term, hotel investors and developers did not stop expanding at the height of the pandemic. According to CBRE’s Asia Pacific Hotel Market Outlook report, APAC hotel investment staged a comeback in 2021, growing 46% year-on-year to reach USD12.1 billion.
Additionally, an analysis by Lodging Econometrics shows that investor confidence in large properties appears to have remained upbeat, with five of the largest international hotel chains in the region having 776 new hotel projects in the pipeline as of the third quarter of 2021, excluding projects in China. Hilton, for example, had record openings of 79 hotels in 2020 and opened 15 new hotels in January 2021 alone. The openings were backed by investors noting the strong rise of domestic travel in the region and having long- term faith in recovery due to evidence of pent- up travel demand. These investments bode well for the return of APAC as one of the fastest- growing tourism regions in the world.
Skift Research estimates that the accommodation sector in APAC generated $186 billion of revenues in 2019, a 4.7% compound annual growth rate (CAGR) since 2008, the earliest year in our analysis. As a result of the pandemic, we estimate that the APAC accommodation sector suffered a 50% year-over-year revenue decline in 2020 to $94 billion. The sector grew 26% to $118 billion in sales in 2021 and we expect it to grow another 38% to reach $163 billion in 2022, still 12% less than 2019 revenues.
| Accommodation Sector Revenue (USD Billion) | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021E | 2022E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Hotel Revenue | 110.56 | 106.45 | 123.03 | 133.65 | 133.92 | 134.63 | 138.54 | 137.51 | 141.48 | 153.57 | 159.49 | 170.64 | 85.55 | 105.81 | 149.83 |
| STR Revenue | 1.11 | 1.57 | 3.05 | 4.65 | 6.00 | 6.70 | 7.59 | 8.22 | 9.17 | 10.72 | 11.93 | 14.90 | 8.12 | 11.97 | 12.78 |
| Total | 112 | 108 | 126 | 138 | 140 | 141 | 146 | 146 | 151 | 164 | 171 | 186 | 94 | 118 | 163 |
Source: Skift Research
The fastest growing segment of accommodations in APAC has been short-term rentals (STRs). The sector grew nine times faster than hotels between 2008 and 2019. Unlike in the U.S. and Europe, data shows that the revenue for hotels and STRs suffered alike in 2020. While revenue for hotels decreased by 50%, revenue for STR
s decreased by around 45% in 2020. As per our analysis, hotels are expected to recover faster than STRs in 2022. While hotel revenues are estimated to be 12% lower than 2019 levels, STR revenues are expected to be 15% lower than 2019 levels.
Skift Research’s Travel Health Index confirmed this trend in the pace of recovery of hotels and STR bookings as presented in the chart below.
As highlighted in Skift Research’s Short-Term Rentals: Asia Pacific Focus report released earlier this year, the STR industry in APAC is still in its nascent stage, except for a few countries like Australia which is a very mature STR market. For instance, from our recently published Europe Accommodation Sector Market Estimates 2022 and this report, we can see that while hotel revenues in Europe were 23% more than APAC hotel revenues in 2019, STR revenues were more than double in Europe as compared to APAC.
While more accepted in Europe and U.S., we expect consumers in APAC to take more time to adapt and start using STRs more frequently as can be seen in the booking trend presented in the chart above. The bookings for hotels and STRs were in line with each other from April 2020 to December 2021 but the gap started widening since the start of 2022. It is yet to be seen how the STR industry in APAC shapes up once the altered travel patterns owing to Covid stabilize.
Since STRs are a relatively new concept in the APAC region, there is very limited data available on the associated market landscape in government records and other credible third-party sources at a regional and country level. As a result, we will focus on the hotel sector in the next few sections of this report.
Hotel Sector Market Analysis By Country
In this section, we will provide an analysis of different performance indicators to understand the hotel market dynamics in APAC, including revenue, the size and scale of companies, occupancy rates, Revenue per Available Room (RevPAR) and Average Daily Rates (ADR).
Revenue and Forecasts
Based on 2019 revenue data, the ten largest markets for hotels in APAC are, in order: China, Japan, Australia, India, Indonesia, South Korea, Turkey, Thailand, Singapore, and Malaysia. Collectively, the top three markets themselves represented $94 billion in sales, 55% of the APAC hotel market in 2019.
| Hotel Revenue (USD Billion) | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020E | 2021E | 2022E |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Australia | 10.35 | 9.32 | 11.46 | 13.56 | 14.29 | 13.38 | 13.16 | 11.84 | 11.63 | 12.42 | 12.53 | 12.09 | 6.47 | 6.82 | 10.39 |
| China | 38.04 | 40.50 | 42.77 | 46.91 | 50.30 | 54.04 | 56.44 | 57.94 | 57.31 | 58.67 | 61.21 | 62.86 | 41.10 | 59.99 | 35.83 |
| India | 17.50 | 12.13 | 17.11 | 13.44 | 8.63 | 7.19 | 7.17 | 7.09 | 9.82 | 11.06 | 11.24 | 11.82 | 4.43 | 8.32 | 15.00 |
| Indonesia | 5.43 | 5.30 | 6.54 | 7.75 | 7.84 | 7.69 | 7.66 | 7.56 | 7.36 | 10.88 | 10.34 | 11.28 | 5.37 | 4.58 | 14.91 |
| Japan | 10.09 | 10.48 | 11.19 | 11.93 | 12.29 | 11.08 | 11.38 | 10.58 | 12.18 | 12.31 | 12.93 | 19.27 | 5.73 | 3.67 | 19.27 |
| Malaysia | 2.68 | 2.72 | 3.02 | 3.43 | 3.59 | 3.72 | 3.74 | 3.71 | 3.73 | 3.76 | 4.21 | 4.30 | 2.05 | 1.75 | 5.68 |
| Singapore | 2.55 | 2.04 | 2.90 | 3.90 | 4.20 | 4.36 | 4.54 | 4.22 | 4.31 | 4.45 | 4.84 | 5.02 | 1.40 | 0.94 | 7.04 |
| South Korea | 5.72 | 5.42 | 5.91 | 6.53 | 6.61 | 6.71 | 7.40 | 8.19 | 9.27 | 9.74 | 10.75 | 10.61 | 3.15 | 2.02 | 12.60 |
| Thailand | 2.52 | 2.78 | 3.88 | 4.94 | 5.02 | 5.26 | 5.18 | 5.12 | 5.47 | 6.22 | 6.74 | 7.23 | 2.74 | 1.12 | 5.02 |
| Turkey | 4.62 | 5.12 | 5.95 | 7.89 | 7.76 | 7.72 | 8.02 | 7.51 | 6.26 | 8.69 | 8.76 | 9.10 | 4.58 | 6.01 | 9.10 |
| Top 10 countries total | 99.50 | 95.80 | 110.72 | 120.28 | 120.53 | 121.17 | 124.69 | 123.76 | 127.33 | 138.21 | 143.54 | 153.58 | 77.00 | 95.23 | 134.85 |
| Remaining countries | 11.06 | 10.64 | 12.30 | 13.36 | 13.39 | 13.46 | 13.85 | 13.75 | 14.15 | 15.36 | 15.95 | 17.06 | 8.56 | 10.58 | 14.98 |
| Total | 110.56 | 106.45 | 123.03 | 133.65 | 133.92 | 134.63 | 138.54 | 137.51 | 141.48 | 153.57 | 159.49 | 170.64 | 85.55 | 105.81 | 149.83 |
Source: Skift Research; Historical data drawn from Australian Bureau of Statistics, Chinese Statistics Office, Horwath HTL, Japan Productivity Center, Department of Statistics Malaysia, National Statistical Office Thailand, UNWTO
China is, by our estimates, the largest hotel market in APAC. We estimate that it will generate $36 billion in sales in 2022, a 24% share. Although hotels in China were performing extremely well in 2021 and the overall revenue was close to 2019 levels, the rise of Covid cases and the resulting travel restrictions imposed by the government in 2022 has again slowed down the growth in hotel revenues. Matthew Parsons, Corporate Travel Editor at Skift, in his recent article highlighted how China’s ongoing Covid crackdowns have put the brakes on an almost-there recovery for hotel companies in the region.
The hotel industry in Japan is expected to reach 2019 revenue levels in 2022. Revenue grew at an average rate of 7% year-over-year till 2019 before it fell down by 70% due to the pandemic. Japan has maintained some of the strictest border controls in the world over the past two years in an effort to stem the spread of Covid-19, hammering inbound tourism. However, the country is opening up in a phased and swift manner now. From the beginning of March 2022, authorities raised the number of people allowed to enter to 5,000 a day, from 3,500 before. Starting from June 2022, Japan increased the maximum number of people allowed every day to enter at border crossings to 20,000.
It is noteworthy that the revenue of the hotel industry in Australia has remained more or less stagnant in the past decade, growing at an average of 2% year-over-year between 2008 and 2019. Revenues of hotels in Australia are expected to reach 85% of 2019 levels in 2022, around $10 billion, and will maintain a steady share of around 7% in 2019 and 2022. Australia reopened its border in February 2022, the first time since March 2020, for travelers to Australia from anywhere in the world as long as they are vaccinated. It is estimated that the country will reach pre-pandemic travel levels by the end of 2022. In a recent interaction with Skift, Ben Hall, CEO of Australian-based tour operators AAT Kings and Inspiring Journeys, commented, “I think that we will see people booking travel here. It’ll gradually progress as we get through the winter months into summer. And I think it will be back and booming by September and October.”
The growth trajectory of hotel revenues in India has remained topsy turvy since 2008 predominantly due to dropping ADRs which was not matched by an equivalent rise in occupancy rates. However, the future seems bright for India with 2022 hotel revenue surpassing 2019 levels reflecting a strong recovery from the pandemic. A recent analysis by STR validates our estimations. According to STR, India’s hotel performance recovery resumed early in 2022 and April seemed to be the turning point, with the country outpacing pre-pandemic comparables in occupancy and ADR for three consecutive weeks. Additionally, data shows that forward bookings appear healthy for the remainder of the year.
Hotel revenues in Indonesia consistently grew at an average of 8% year-over-year between 2008 and 2019 to achieve the fifth spot on the chart with a revenue of around $11 billion in 2019. Like India, Indonesia’s hotel sector revenue is also expected to surpass the 2019 levels by 2022. Peden Doma Bhutia, Asia Editor at Skift, reported that the country dropped all quarantine requirements, on-arrival test requirements, and declared that foreigners from nine ASEAN countries would be able to enter the country without a visa earlier this year, resulting in a rapid increase in foreign tourist arrivals.
South Korea, Turkey, Thailand, Singapore, and Malaysia collectively accounted for 21% of the total hotel sector revenue of the APAC region in 2019. The hotel sectors of these countries are expected to recover from losses and surpass the 2019 revenue levels by 2022, except Thailand, which would be at 70% of its 2019 revenue level in 2022. As recently reported by Skift, Thailand has been late to the party. The country eased entry restrictions much later in the year as compared to its geographical counterparts and hence, a full recovery this year seems like a bleak possibility.
Size and Scale of Companies
Enterprise Count
Unsurprisingly, China has the largest number of enterprises in the region given the sheer size of the country followed by Thailand, Japan, Indonesia, Australia and Malaysia. The number of enterprises is not in line with the total revenue generated by the sector. To give a perspective, on average, revenue per enterprise in China was approximately $2.6 million in 2019 while revenue per enterprise in Australia was around $4.2 million.
| Enterprise count | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Australia | 2,306 | 2,296 | 2,259 | 2,303 | 2,050 | 2,058 | 2,149 | 2,333 | 2,360 | 2,622 | 2,694 | 2,880 |
| China | 10,880 | 11,703 | 12,588 | 13,540 | 14,564 | 15,666 | 16,851 | 18,125 | 19,496 | 19,780 | 20,614 | 23,793 |
| India | – | – | – | – | – | – | – | – | – | – | – | – |
| Indonesia | 7,415 | 7,423 | 7,701 | 8,348 | 7,748 | 8,105 | 8,938 | 9,594 | 9,995 | 13,190 | 14,468 | 14,941 |
| Japan | 5,888 | 6,546 | 7,524 | 7,267 | 7,020 | 7,067 | 6,926 | 6,907 | 6,807 | 7,028 | 7,467 | 8,081 |
| Malaysia | 1,280 | 1,280 | 1,261 | 1,429 | 1,488 | 1,498 | 1,978 | 2,453 | 2,593 | 2,395 | 2,400 | 2,473 |
| Singapore | – | – | – | – | – | – | – | – | – | – | – | – |
| South Korea | – | – | – | – | – | – | – | – | – | – | – | – |
| Thailand | 918 | 1,434 | 1,951 | 2,751 | 3,551 | 3,578 | 3,606 | 4,080 | 4,554 | 6,667 | 8,779 | 8,757 |
| Turkey | – | – | – | – | – | – | – | – | – | – | – | – |
Note: Data for a few countries is missing as no credible public source found
Source: Skift Research, UNWTO, Chinese Statistics Office, HVS, Japan Economic Census
Establishment Count
Enterprises in Australia, China, Indonesia and Malaysia consist of approximately two establishments per enterprise while in Japan and Thailand the market seems to be very fragmented since their enterprise and establishment counts are approximately the same with establishment per enterprise ratio of around 1.5.
| Establishment count | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Australia | 4,277 | 4,310 | 4,279 | 4,216 | 4,233 | 4,237 | 4,204 | 4,464 | 4,445 | 5,189 | 5,256 | 5,637 |
| China | 21,760 | 23,406 | 25,176 | 27,080 | 29,128 | 31,332 | 33,701 | 36,250 | 36,726 | 39,146 | 40,222 | 46,569 |
| India | – | – | – | – | – | – | – | – | – | – | – | – |
| Indonesia | 13,751 | 13,932 | 14,587 | 15,283 | 15,998 | 16,685 | 17,484 | 18,353 | 18,829 | 26,104 | 28,230 | 29,243 |
| Japan | 8,534 | 9,486 | 10,904 | 10,531 | 10,173 | 10,241 | 10,037 | 10,009 | 9,864 | 10,185 | 10,821 | 11,711 |
| Malaysia | 2,373 | 2,373 | 2,367 | 2,707 | 2,724 | 3,094 | 4,072 | 4,799 | 4,961 | 4,512 | 4,750 | 4,826 |
| Singapore | – | – | – | – | – | – | – | – | – | – | – | – |
| South Korea | – | – | – | – | – | – | – | – | – | – | – | – |
| Thailand | 1,377 | 2,151 | 2,926 | 4,126 | 5,326 | 5,367 | 5,409 | 6,120 | 6,832 | 10,000 | 13,168 | 13,135 |
| Turkey | – | – | – | – | – | – | – | – | – | – | – | – |
Note: Data for a few countries is missing as no credible public source found
Source: UNWTO, Chinese Statistics Office, HVS, Japan Economic Census, Skift Research
| Establishments per Enterprise | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Australia | 1.9 | 1.9 | 1.9 | 1.8 | 2.1 | 2.1 | 2.0 | 1.9 | 1.9 | 2.0 | 2.0 | 2.0 |
| China | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 | 1.9 | 2.0 | 2.0 | 2.0 |
| India | – | – | – | – | – | – | – | – | – | – | – | – |
| Indonesia | 1.9 | 1.9 | 1.9 | 1.8 | 2.1 | 2.1 | 2.0 | 1.9 | 1.9 | 2.0 | 2.0 | 2.0 |
| Japan | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 |
| Malaysia | 1.9 | 1.9 | 1.9 | 1.9 | 1.8 | 2.1 | 2.1 | 2.0 | 1.9 | 1.9 | 2.0 | 2.0 |
| Singapore | – | – | – | – | – | – | – | – | – | – | – | – |
| South Korea | – | – | – | – | – | – | – | – | – | – | – | – |
| Thailand | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 |
| Turkey | – | – | – | – | – | – | – | – | – | – | – | – |
Note: Data for a few countries is missing as no credible public source found
Source: UNWTO, Chinese Statistics Office, HVS, Japan Economic Census, Skift Research
Rooms per Establishment
China has the highest number of rooms per establishment followed by Malaysia, indicative of the presence of more large-scale hotels in these countries. Indonesia and Japan on the other hand had around 30 rooms per establishment in 2019 indicative of the presence of more small-scale hotels in these countries.
| Rooms per establishment | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Australia | 52 | 52 | 53 | 54 | 54 | 54 | 55 | 56 | 56 | 53 | 54 | 53 |
| China | 95 | 95 | 95 | 95 | 95 | 95 | 95 | 95 | 103 | 100 | 98 | 91 |
| India | – | – | – | – | – | – | – | – | – | – | – | – |
| Indonesia | 24 | 24 | 24 | 25 | 25 | 26 | 27 | 28 | 28 | 27 | 23 | 27 |
| Japan | 30 | 28 | 25 | 26 | 27 | 28 | 28 | 28 | 28 | 29 | 29 | 28 |
| Malaysia | 70 | 71 | 71 | 71 | 72 | 68 | 64 | 63 | 65 | 65 | 65 | 65 |
| Singapore | – | – | – | – | – | – | – | – | – | – | – | – |
| South Korea | – | – | – | – | – | – | – | – | – | – | – | – |
| Thailand | 98 | 98 | 98 | 88 | 82 | 81 | 80 | 73 | 67 | 57 | 52 | 50 |
| Turkey | – | – | – | – | – | – | – | – | – | – | – | – |
Note: Data for a few countries is missing as no credible public source found
Source: UNWTO, Chinese Statistics Office, HVS, Japan Economic Census, Skift Research
Persons Employed
As we mentioned in our Europe Accommodation Sector Market Estimates 2022 report, the primary determinant of enterprise scale is the number of employees. Large businesses operate with 250 employees or more. Medium businesses run with 50–249 employees, small ones with 10–49 staff, and micro-enterprises with less than that. The latter three categories often get aggregated into the group “small and medium enterprises” (SMEs).
If we use the same definition to the employment data for APAC, we can surmise that Australia, China, Indonesia and Thailand, which have less than 49 staff per establishment will have more number of small and micro hotel entities while countries like Japan and Malaysia which have more than 50 staff per establishment will have more number of medium hotel entities.
Employees per enterprise are almost double of employees per establishment in line with the establishment per enterprise ratio of 2, on an average, as mentioned above.
It is noteworthy that the average number of staff per room for all countries in the chart below is 0.5 except for Japan which has the maximum number of staff per room.
| Country | Persons Employed | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Australia | 105,400 | 112,600 | 73,000 | 72,200 | 77,400 | 78,500 | 79,500 | 84,200 | 83,500 | 84,900 | 85,400 | 86,100 | |
| Per Establishment | 25 | 26 | 17 | 17 | 18 | 19 | 19 | 19 | 19 | 16 | 16 | 15 | |
| Per Enterprise | 46 | 49 | 32 | 31 | 38 | 38 | 37 | 36 | 35 | 32 | 32 | 30 | |
| Per Room | 0.5 | 0.5 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | |
| China | 953,262 | 1,025,361 | 1,102,913 | 1,186,330 | 1,276,057 | 1,372,570 | 1,476,382 | 1,588,046 | 1,863,000 | 1,821,000 | 1,780,000 | 1,820,000 | |
| Per Establishment | 44 | 44 | 44 | 44 | 44 | 44 | 44 | 44 | 51 | 47 | 44 | 39 | |
| Per Enterprise | 88 | 88 | 88 | 88 | 88 | 88 | 88 | 88 | 96 | 92 | 86 | 76 | |
| Per Room | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | 0.4 | |
| India | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Establishment | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Enterprise | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Room | – | – | – | – | – | – | – | – | – | – | – | – | |
| Indonesia | 247,600 | 249,700 | 261,200 | 280,400 | 293,200 | 307,480 | 326,100 | 333,100 | 340,400 | 369,950 | 399,500 | 408,600 | |
| Per Establishment | 18 | 18 | 18 | 18 | 18 | 18 | 19 | 18 | 18 | 14 | 14 | 14 | |
| Per Enterprise | 33 | 34 | 34 | 34 | 38 | 38 | 36 | 35 | 34 | 28 | 28 | 27 | |
| Per Room | 0.8 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.6 | 0.5 | 0.6 | 0.5 | |
| Japan | 361,933 | 356,823 | 367,931 | 391,684 | 366,483 | 360,000 | 400,000 | 540,000 | 540,000 | 570,000 | 610,649 | 654,196 | |
| Per Establishment | 42 | 38 | 34 | 37 | 36 | 35 | 40 | 54 | 55 | 56 | 56 | 56 | |
| Per Enterprise | 61 | 55 | 49 | 54 | 52 | 51 | 58 | 78 | 79 | 81 | 82 | 81 | |
| Per Room | 1.4 | 1.4 | 1.4 | 1.4 | 1.3 | 1.3 | 1.4 | 1.9 | 1.9 | 1.9 | 2.0 | 2.0 | |
| Malaysia | 101,000 | 104,600 | 176,200 | 176,100 | 188,700 | 180,800 | 231,200 | 199,000 | 223,000 | 229,300 | 260,233 | 264,397 | |
| Per Establishment | 43 | 44 | 74 | 65 | 69 | 58 | 57 | 41 | 45 | 51 | 55 | 55 | |
| Per Enterprise | 79 | 82 | 140 | 123 | 127 | 121 | 117 | 81 | 86 | 96 | 108 | 107 | |
| Per Room | 0.6 | 0.6 | 1.0 | 0.9 | 1.0 | 0.9 | 0.9 | 0.7 | 0.7 | 0.8 | 0.8 | 0.8 | |
| Singapore | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Establishment | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Enterprise | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Room | – | – | – | – | – | – | – | – | – | – | – | – | |
| South Korea | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Establishment | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Enterprise | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Room | – | – | – | – | – | – | – | – | – | – | – | – | |
| Thailand | 120,087 | 147,205 | 174,323 | 214,991 | 255,658 | 243,593 | 231,528 | 234,436 | 237,344 | 262,534 | 287,724 | 290,150 | |
| Per Establishment | 87 | 68 | 60 | 52 | 48 | 45 | 43 | 38 | 35 | 26 | 22 | 22 | |
| Per Enterprise | 131 | 103 | 89 | 78 | 72 | 68 | 64 | 57 | 52 | 39 | 33 | 33 | |
| Per Room | 0.7 | 0.6 | 0.6 | 0.6 | 0.6 | 0.5 | 0.5 | 0.5 | 0.5 | 0.4 | 0.4 | 0.4 | |
| Turkey | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Establishment | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Enterprise | – | – | – | – | – | – | – | – | – | – | – | – | |
| Per Room | – | – | – | – | – | – | – | – | – | – | – | – |
Note: Data for a few countries is missing as no credible public source found
Source: Chinese Statistics Office, National Statistical Office Thailand, UNWTO, Skift Research
Key Performance Indicators
Revenue Per Available Room (TRevPAR)
As mentioned in the beginning of the report, the revenue figures for the hotels represent the total revenue including room revenue, revenue from food and beverages and other facilities and services. In line with that, the RevPAR presented in the table below is actually Total Revenue per Available Room, or TRevPAR. TRevPAR assesses the total income a hotel generates on a per-available-room basis and gives an insight into the overall performance of the hotels.
Two countries which clearly stand out here are Australia and Japan, with TRevPAR above $100. TRevPAR of hotels in Japan increased by approximately 40% in 2019 potentially due to high demand ahead of the Olympics that the country hosted in early 2020.
| TRevPAR ( in USD) | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Australia | 127.98 | 113.15 | 138.22 | 163.94 | 172.29 | 159.39 | 156.96 | 130.49 | 127.91 | 123.74 | 120.62 | 111.70 |
| China | 50.28 | 49.77 | 48.87 | 49.82 | 49.67 | 49.61 | 48.17 | 45.97 | 41.50 | 40.88 | 42.48 | 40.74 |
| India | – | – | – | – | – | – | – | – | – | – | – | – |
| Indonesia | 45.72 | 43.36 | 50.73 | 55.69 | 52.92 | 48.91 | 44.70 | 40.84 | 38.26 | 42.37 | 43.57 | 39.84 |
| Japan | 107.20 | 108.86 | 113.68 | 117.86 | 123.28 | 106.29 | 110.82 | 101.90 | 119.97 | 114.61 | 114.65 | 159.97 |
| Malaysia | 44.28 | 44.17 | 49.06 | 48.67 | 50.33 | 48.60 | 39.15 | 33.33 | 31.73 | 35.26 | 37.40 | 37.30 |
| Singapore | – | – | – | – | – | – | – | – | – | – | – | – |
| South Korea | – | – | – | – | – | – | – | – | – | – | – | – |
| Thailand | 45.54 | 32.66 | 26.46 | 29.43 | 31.10 | 31.66 | 33.20 | 31.84 | 30.65 | 26.23 | 24.87 | 27.88 |
| Turkey | – | – | – | – | – | – | – | – | – | – | – | – |
Note: Data for a few countries is missing as no credible public source found
Source: Australian Bureau of Statistics, Chinese Statistics Office, Horwath HTL, Japan Productivity Center, Department of Statistics Malaysia, National Statistical Office Thailand, UNWTO, Skift Research
The Benefit of TRevPAR
While TRevPAR includes all sources of revenue within a hotel, RevPAR only includes room revenue on a per-available-room basis. In order to increase the overall revenue of the hotel, it is important to understand the impact each department has on a hotel’s overall performance, particularly for full-service hotels, which tend to feature the most amenities.
For example, in Australia, room revenue accounted for around 65% of the overall hotel revenues in 2019, TRevPAR was $112 while RevPAR was $73 meaning 35% of the revenues are coming from ancillaries. Similarly, in Japan, room revenue accounted for 70% of the overall hotel revenues in 2019, where TRevPAR was $160 and RevPAR was $112 meaning 30% of revenues are coming from ancillaries. Knowing the breakdown of revenue by its source, hotels can tweak the pricing of different product categories to increase the overall revenues. For example, if a hotelier knows that its customers spend a lot of money in the spa and restaurant they might lower room rates on purpose, but increase prices in the restaurant.
Understanding Room Revenue Dynamics
We can examine what is driving RevPAR growth (or decline) by breaking down the metric into its two component parts: average daily rate (ADR) and occupancy. For the top 5 countries, between 2008 and 2019, on aggregate, pricing power was the biggest driver of RevPAR (as shown in the charts below), with the exception of a few years in between where occupancy levels drove RevPAR growth. For example, in 2017, occupancy levels pulled up RevPAR for hotels in Australia. In 2019, occupancy levels pulled up RevPAR for hotels in China. Through 2017-2019, RevPAR for hotels in Indonesia was driven by occupancy levels and not pricing. For hotels in Japan, the role of pricing and occupancy kept interchanging to change RevPAR for the given time period. India seems to be the only country wherein ADRs have predominantly levered the RevPAR metric.
Hotel Occupancy
On average, occupancy rates for the top countries in APAC have ranged from 55%-60% between 2008 to 2019, except for Japan and Singapore where the occupancy rates of hotels were as high as 80% on average for the same time period.
Exploring further, occupancy rates seem to be tied closely to the supply of hotel rooms available in the market. For example, a study done by Savills on Japan Hospitality shows that the room supply in Japan has been more or less stagnant between 2008 and 2018. Savill’s Singapore Hotel Market study shows that the room supply in the country’s hotel market increased at a nominal rate of 5% per annum during the same period. On the other hand, if we look at a country with lower occupancy rates, like Indonesia, a study showed that the room supply increased at the rate of approximately 11% per annum from 2008 to 2018.
As per the data provided by STR, average occupancy levels in the region hit a low of 40% in 2020 which then increased to 45% in 2021.
Hotel Pricing
ADRs of hotels in all countries listed in the table below, except Australia and Japan, hovered between $55-$65 between 2008 and 2019.
ADRs of hotels in Australia and Japan touched $100. This clarifies that such high ADR is the reason behind an extremely high TRevPAR of hotels in Australia. The ADRs of hotels in Japan witnessed a hike in 2019 as compared to 2018 in line with the TRevPAR potentially because of high demand due to the 2020 Olympics, as already stated above.
| ADR (in USD) | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Australia | 129.36 | 118.42 | 140.95 | 164.21 | 170.01 | 161.66 | 153.22 | 130.38 | 129.22 | 135.26 | 133.83 | 126.54 |
| China | 49.95 | 55.30 | 54.30 | 55.36 | 56.02 | 57.69 | 55.16 | 51.09 | 44.15 | 45.02 | 47.48 | 46.01 |
| India | – | – | – | – | – | – | – | – | – | – | – | – |
| Indonesia | 85.62 | 80.77 | 93.44 | 97.80 | 92.40 | 83.84 | 75.85 | 70.91 | 67.66 | 67.26 | 66.74 | 65.42 |
| Japan | 115.90 | 123.53 | 115.78 | 107.62 | 105.48 | 89.61 | 90.22 | 78.89 | 92.63 | 90.89 | 90.94 | 122.39 |
| Malaysia | 40.08 | 43.52 | 49.64 | 48.19 | 48.40 | 46.58 | 36.94 | 32.30 | 31.26 | 34.91 | 36.91 | 38.06 |
| Singapore | – | – | – | – | – | – | – | – | – | – | – | – |
| South Korea | – | – | – | – | – | – | – | – | – | – | – | – |
| Thailand | 52.60 | 40.71 | 37.63 | 41.06 | 37.71 | 36.44 | 35.83 | 40.10 | 32.95 | 27.40 | 24.66 | 27.43 |
| Turkey | – | – | – | – | – | – | – | – | – | – | – | – |
Note: Data for a few countries is missing as no credible public source found
Source: HVS, Horwath HTL, Skift Research
Methodology and Definitions
In-Scope Countries and Currency
This report covers businesses operating in the accommodation sector within all countries in APAC, with a key focus on: Australia, China, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, and Turkey. These top countries were selected on the basis of inbound tourism expenditure in the year 2019. Collectively, they account for 83% of overall inbound tourism expenditure in APAC in 2019.
To account for the remaining countries, we have assumed that the remaining countries contribute 10% to the overall revenue.
All currency figures in this report are reported in USD. Since all countries in APAC have their own local currencies, they have been converted to USD using historical exchange rates.
Definitions
Enterprise
This term refers to corporations engaging in businesses/activities and establishments of individual proprietorships. When the same management agency runs multiple establishments of individual proprietorships, all those establishments are regarded as a single enterprise.
Establishment
An establishment is a unit of place which occupies a certain space (1 plot) and in which economic activities are performed under a single management agency.
Sectors
Hotels: This class includes the provision of accommodation, typically on a daily or weekly basis, principally for short stays by visitors. This includes the provision of furnished accommodation in guest rooms and suites. Services include daily cleaning and bed-making. A range of additional services may be provided such as food and beverage services, parking, laundry services, swimming pools and exercise rooms, recreational facilities as well as conference and convention facilities. This class includes accommodation provided by: hotels (and similar establishments, for instance operating under the name ‘bed & breakfast’); resort hotels; suite/apartment hotels; motels.
Short-Term Rentals: This class includes the provision of accommodation, typically on a daily or weekly basis, principally for short stays by visitors, in self-contained space consisting of complete furnished rooms or areas for living/dining and sleeping, with cooking facilities or fully equipped kitchens. This may take the form of apartments or flats in small free-standing multi-storey buildings or clusters of buildings, or single storey bungalows, chalets, cottages and cabins. Very minimal complementary services, if any, are provided.
Methodology
Hotel Revenue Calculation
We gathered data from various government and other credible third-party sources to get revenue figures for the hotel sector at a country level for the top 10 countries (selected on the basis of inbound tourism expenditure in 2019) in APAC till 2019. Wherever this was not possible, we calculated revenue using RevPAR, occupancy and Average Daily Rates (ADRs). The revenue figures presented here are a holistic figure including room revenue, revenue from food and beverages, and other services.
Values for 2020 and 2021 are forecasted based on our Skift Travel Health Index (STHI) scores. Since 2022 STHI scores are currently only available for five months, we have studied other related factors like the trend of Covid case numbers, Stringency Index, and the Consumer Price Index to ascertain the year long trend for STHI and use it for estimating 2022 revenues.
STR Revenue Calculation
To calculate short-term rental revenues, revenue for the top 5 online booking platforms (Airbnb, Booking.com, Vrbo, Tujia and MakeMyTrip) in the region has been totalled. To account for the remaining online players the revenue from these 5 players has been increased by 10%. To complete the analysis, revenue from offline bookings has been added.
Size & Scale Parameters and Other KPIs
Number of establishments, enterprises and rooms have been sourced from either UNWTO or other credible third party sources. KPIs for certain countries have been calculated using revenue and another KPI or directly sourced from credible sources.