Taiwan’s major hotels expect revenue to pick up in the second half of the year, during the traditional high sales season, after posting a disappointing first half due to sharpening competition and a softening economic environment.
Occupancy and room rates should benefit from holidaymakers this summer and from the peak banquet season toward the of the year, but the nation’s slow economic recovery could limit growth.
Formosa Regent Taipei (台北晶華酒店) — the nation’s largest hotel operator by revenue — saw occupancy rates fall to 71.67 percent in the first half of the year, from 79.05 percent during the same period last year, weighed by the global economic slowdown and the entry of more competitors.
That compares with occupancy rates of 67.34 percent and room rates of NT$4,014 for international tourist hotels nationwide during the same period, according to Tourism Bureau data.
“Based on the data, we are optimistic that occupancy rates will recover to 80 percent for the whole of this year and that overall revenues will stay flat or grow mildly,” Formosa Regent public relations director Ellen Chang (張筠) said by telephone.
Standard tourist hotels, thus classified as such due to fewer amenities, posted an average occupancy rate of 63.57 percent in the first half, meaning that the average occupancy rate for the nation’s hotels was 66.5 percent, a year-on-year decline of 1.63 percent.
The decline runs counter to an 8.94 percent increase in the number of tourists and implies that a growing number of lodging facilities fall outside the statistics, the bureau said.
The bureau keep records on more than 100 hotels, but not the Mandarin Oriental Taipei, Hotel Cozzi and many others because they are counted as tourist hotels, a tourism official said.
The Westin Taipei said its occupancy rates might increase modestly, while room rates would likely stay flat at NT$6,385 for a standard room as in the first half.
“We are neutral on business outlook with a slightly positive bias,” a Westin communication official said, adding that the hotel has tried to increase food and beverage sales as the soft economic environment might limit room-occupancy growth.
However, Palais De Chine Hotel Taipei (君品) saw occupancy rates grow nearly 2 percent to 81.77 percent in the first half, while average room rates rose from NT$5,052 to NT$5,081, official data found.
The hotel has benefited from its location near Taipei Railway Station and several promotion campaigns, a hotel representative said.
Palais De Chine is neutral about sales in coming months due to uncertainty about the global economy and Taiwan’s ties with China, the official said.
Cosmos Hotel Taipei continued to top the industry in occupancy rates that hit 96.26 percent in the first half, up from 95 percent a year earlier. Standard room rates rose from NT$3,208 to NT$3,277.
Cosmos marketing and communication director Blythe Chao (趙芝綺) said the hotel is the top choice among foreign travelers who seek to explore Taipei and other parts of Taiwan, thanks to its location opposite Taipei Railway Station and a low-price strategy.
“There is still room for improvement despite the strong performance and we are upbeat about growth, especially in tourists from Japan and South Korea,” Chao said.
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