Industry leaders predict upturn - Best Business Hotels In Asia Awards - Brief Article

Business Asia, Feb, 2002

2002 IS shaping up to be a better year than 2001, a survey of previous winners of the Best Business Hotels in Asia Awards has found.

The past year had not been all plain sailing for the hotel industry in Asia, with a global economic downturn and psychological effects of the 11 September World Trade Centre bombing taking their toll.

Portman Ritz Carlton, Shanghai, general manager Mark DeCocinis said a nine per cent decrease in occupancy was experienced from 11 September, until US President George W Bush stayed there for APEC in October.

Following that, business increased to a record 92.5 per cent occupancy in November. For the year ahead, DeCocinis is projecting growth of nine per cent.

"Shanghai and China are experiencing continuous interest in new companies looking to establish offices in Shanghai, and larger established companies are expanding their operations in China. We expect growth in the travel segment and from within Asia," he said.

"The improvement of the world economic situation will be critical to us in Asia this year."

Helmut Gaisberger, general manager of the Mandarin Oriental, Manila, also reports an immediate drop in occupancy following the 11 September bombing, and the effects are still lingering.

"We are experiencing the lingering effects of people travelling and flying less, more so because some companies have restricted their executives from travelling to the Philippines," Gaisberger says.

He added the Mandarin Oriental, Manila, is being conservative by predicting no growth for 2002.

Across the South China Sea in Thailand, reports are quite different.

Greg Anderson, director of marketing and sales for Le Meridien, Bangkok, says the country is as popular as ever, with a strong leisure tourism industry and expanding business community.

The hotel is expecting confident revenue growth of over 30 per cent on 2001. All three hotels were category winners in the 2001 BBHIA awards, with the Portman Ritz Carlton Shanghai, taking overall honours.