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Horwath HTL releases latest version of Global Hotel Market Sentiment Survey

Global hotel sentiment falls as continued economic issues continue to bite

The latest survey compiled by Horwath Hotel, Tourism and Leisure, the world’s largest hospitality consulting firm, shows that the improved optimism at the start of the year has once again been stymied due to the prevailing global economic uncertainty. Hotel operator sentiment has followed the same pattern of the last 3 years; with mid-year sentiment turning negative after a more…

The latest survey compiled by Horwath Hotel, Tourism and Leisure, the world’s largest hospitality consulting firm, shows that the improved optimism at the start of the year has once again been stymied due to the prevailing global economic uncertainty. Hotel operator sentiment has followed the same pattern of the last 3 years; with mid-year sentiment turning negative after a more optimistic outlook at the start of the year, slumping to a neutral score of 1. Europe’s return to a negative sentiment score has weighed down the global average and in Asia; China had a negative sentiment reflecting the slowing economic growth in that country.

The Survey provides the hotel industry with a quick assessment of the future market outlook. The four-question survey focuses on the outlook for occupancy, average room rates and total revenue. Hoteliers have also been asked to make comments on their expectations for the coming year in comparison to 2011, as well as identify key factors of growth/decline, assessing the outlook for key demand segments.

Performance in all three indictors in the first half of 2012 failed to meet hotel operator expectations, with hoteliers slightly more disappointed with occupancy levels than average room rate performance. The sentiment of hoteliers across all world regions, apart from the Americas, has moderated indicating that the improved optimism at the start of the year has once again been stymied due to the prevailing global economic uncertainty. Africa & the Middle East recorded the highest sentiment score for this survey, albeit at a modest score of 29. Asia’s sentiment score dropped from a relatively high 37 in February to a score of 10, while Europe’s sentiment score dropped to negative 8. Oceania, on the back of weakening growth in China and a strong local currency sending domestic tourists overseas, has seen its sentiment score drop to -12.

Damien Little, a Director of Horwath HTL in Asia and the founder of the survey said, “results from the latest edition of the Global Hotel Market Sentiment Survey indicate that once again the on-going global economic and geo-political uncertainties continue to plague performance levels across the globe and sour the outlook despite the renewed optimism we have seen at the beginning of the year for the past couple of years. With so much economic uncertainty across the globe, sentiment in the hotel industry continues to be weighed down and the assessment is that performance levels will continue to be below expectations”

BY REGION SCORE
Jan 2010 Sep 2010 Feb 2011 Aug 2011 Feb 2012 Jul 2012
Asia 48 46 52 22 37 10
Oceania 41 52 58 38 35 -12
Europe 4 15 34 16 14 -8
Americas 21 8 37 9 17 28
Africa/ Middle East 43 7 9 -6 41 29
Global Average 27 29 42 16 24 1

H2 2012 GHMSS

Theodore Koumelis
Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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