33% of HK hotel price increase reflects economic comeback

Last year, Hong Kong average hotel room rates rose by 33% or $929, compared to a 2% global average.

According to the Hotels.com Hotel Price Index, the strength of the increase is lkely attributable to a growth in demand for both corporate and leisure travel particularly from countries like mainland China.

In Asia, with a 2% average decline on a global level, individual Asian countries have experienced mixed growth patterns; Shanghai performed similarly to Hong Kong thanks to the success of the World Expo (37%), Singapore followed close behind at (32%), while some cities experienced declines resulting in better deals for travellers, such as Seoul (-9%), Tokyo (-11%), Beijing (-5%) and Bangkok (-7%).

David Roche, President of Hotels.com, comments, “After the worst trading conditions most in the market has seen, the 2010 story shows recovery particularly for the majority of countries in Asia.”

Johan Svanstrom, Managing Director, Asia Pacific for Hotels.com, noted “Despite the 2% decrease of hotel rates in 2010 in Asia, the average price of a hotel room in this region was still 15% higher than when the Hotel Price Index began in 2004. It’s fantastic to see the hotel industry reflect the growth that other business sectors in Asia are experiencing.”