The Chinese tourism sector reported a general drop in revenues per room available (RevPAR), throughout the second half of this year, within Greater China.
Marriott’s RevPAR is down 4 percent. IHG’s RevPAR is also down 7 percent. Wyndham has reported a 17 percent decline during the quarter.
Leeny O’Berg, Marriott Chief Financial Officer, said during a recent earnings conference that the weaker demand and current price trends in Greater China might persist through 2024. He also noted that the biggest RevPAR decline is likely to occur during the third quarter.
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It’s interesting to note that China is not the only giant in tourism experiencing a major slump. The hospitality sector in the United States also saw a slight year-on-year decline in the first half of this year. Right now, the average RevPAR is approximately 5 percent below what was seen in 2019.
India, however, continues to show steady growth. According to McKinsey’s recent report, The State of Tourism and Hospitality (The State of Tourism and Hospitality), India is now the world’s sixth largest domestic travel market by spending.
The report stated that the growth of the Indian middle-class is the primary reason for this development. The country’s travel spending could increase by as much as 9 percent annually.
The report shows that India could surpass both Japan and Mexico in terms of travel by the end the decade, making it the fourth largest travel market on the planet.
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