PATA remains bullish
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PATA remains bullish about tourism arrivals throughout the Asia Pacific region but expects some downward pressure on expenditure and length of stay due to tougher economic conditions, according to PATA Director-Strategic Intelligence John Koldowski.
Speaking at the Jones Lang LaSalle hotel investment conference in Singapore, Koldowski said the industry was facing increasing business costs, driven by record high fuel prices and rising inflation throughout the region.
“While we believe there will still be strong growth in arrivals, in the range of 7-8% in 2008, there is some evidence to suggest that travellers are looking to economise by downgrading flights and accommodation or reducing their length of stay,” he said.
“Some companies, for example, are now asking their executives to travel economy class for trips up to six hours, whereas previously it was four.”
Koldowski noted that the hotel sector was banking on strong growth, with more than 1,500 new hotels, offering 360,000 rooms, in the construction pipeline. He said that while long-haul travel into the region may soften, intra-regional travel is likely to continue to grow.
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