The gateway cities of Seoul and Tokyo naturally benefited from the 2002 FIFA World Cup Korea/Japan – the first World Cup to ever be held…
The gateway cities of Seoul and Tokyo naturally benefited from the 2002 FIFA World Cup Korea/Japan – the first World Cup to ever be held in the region as well as the first to be co-hosted. Some 64 matches were played in June, attracting in the region of 1.6 million stadium spectators of which 800,000 are estimated to have come from countries outside Korea and Japan.
Both Seoul and Tokyo, which typically command the highest average room rates in the region, experienced exceptional rate growth in June of 44.7 and 23.2 percent respectively, according to the HotelBenchmark Survey by Deloitte & Touche. In real terms this equates to US$72 and US$40. Interestingly however, occupancy increases were marginal, with Seoul actually reporting a decline compared to 2001.
Not all Japanese markets however could boast such strong performance – Osaka saw occupancy levels fall by 25.3 percent during the month. This was in part attributable to displaced domestic demand as many visitors decided not to travel on account of the World Cup.
Of the 28 markets tracked by the HotelBenchmark Survey across the Asia Pacific region, only seven reported double-digit increases in revPAR in June 2002 on the prior year (when measured in US dollars). Jakarta experienced the largest increase of some 44.4 percent – albeit from a low base – followed by Seoul, Auckland and Tokyo which all reported increases in excess of 25 percent.
Year-to-date figures show a decline in revPAR for the whole of the Asia Pacific region of 3.4% on the prior year. Although the majority of markets tracked on the HotelBenchmark Survey experienced a decline in revPAR, just over 30 percent reported positive performance with Jakarta, Shanghai and Ho Chi Minh City leading the way in terms of revPAR growth.
June 2002
Tokyo
- Occupancy 82.0%
- Average room rate US$213
- RevPAR US$175
- RevPAR change 25.7%
Seoul
- Occupancy 77.0%
- Average room rate US$231
- RevPAR US$178
- RevPAR change 37.0%
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
