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Road to Robust Travel Recovery: APAC Hotel Occupancy Rose Above Pre-Pandemic Levels in Q1 2023.

The Asia Pacific region (APAC) is witnessing a remarkable revival in travel, with a surge in demand across all markets as the industry gears up for the year’s second half. According to data from Amadeus’ Demand360®, the first quarter of 2023 (January-March) saw APAC experience a significant growth trajectory in hotel occupancy, surpassing 2019 levels by 3% and reaching an impressive rate of 61.7%. This encouraging trend can be attributed to the recent reopening of Greater China’s borders, which has propelled the region’s recovery.

Greater China is leading the charge in APAC’s recovery growth, where hotel occupancy in Q1 2023 outpaced pre-pandemic levels by an impressive 5% compared to Q1 2019. Australia and New Zealand (ANZ) also emerged as the markets with the highest hotel occupancy levels in APAC for the first quarter, climbing from 64.5% in January 2023 to 76.5% in March 2023.

Throughout Q1 2023, major markets in the APAC region experienced notable improvements in hotel occupancy levels. Tokyo stood out with a stellar performance as hotel occupancy rates exceeded 80% and set new records during the cherry blossom season from mid-March to April 2023. Sydney’s hotels maintained an average occupancy rate of 85% from February to March 2023, showcasing the growing confidence of travellers. Singapore hotels also outperformed previous record highs from 2019 by 2-3% in February and March 2023. Seoul’s hotel occupancy in the first quarter of 2023 was 7% higher than in 2019, demonstrating its resilience and strong recovery.

Among the major markets, Tokyo, Hong Kong, Seoul, Shanghai, and Beijing witnessed the highest hotel occupancies in Q1, with rates surpassing 70% during the Easter week from 7th to 10th April 2023. This surge in occupancy reflects the increased travel activity and highlights the potential for a sustained rebound in the APAC hospitality industry.

Maria Taylor, Head of Commercial, Asia Pacific, and Hospitality at Amadeus, expressed her enthusiasm about the resurgence of the hospitality sector in the region, stating, “We are beyond thrilled by the hospitality resurgence that is currently taking place across Asia Pacific compared to pre-pandemic levels. This is a hopeful sign that APAC-based hoteliers may expect a substantial rebound in the long run as travel has picked up domestically and internationally.”

The remarkable recovery of APAC’s hotel occupancy levels in Q1 2023 paints a promising picture for the travel and hospitality industry. With increasing travel demand, the region is poised for a strong rebound, indicating a return to normalcy in the near future.