Signs of Downturn in Russia Come with HopeBy: Michael Komodromou
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Signs of Downturn in Russia Come with Hope
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Russia, February 2009: Moscow has experienced the first signs of the economic downturn, with a five-point drop in chain hotel Occupancy Rate (OR) for 2008, reaching 70%.
Average Daily Rate (ADR) ended the year at €251, only a 5% increase compared to 2007, whilst Revenue per Available Room (RevPAR) decreased slightly to €175.
“These performance indicators released by our market monitoring database, Hotel CompSet, clearly illustrate the first phase of the downward cycle. Although Russia is an emerging market for hotel developers, and indeed will become a goldmine destination in the years ahead, the economic crisis has hindered performance in 2008,” stated Director of Development, MKG Hospitality, Vanguelis Panayotis.
This drop in OR was also fuelled by many new hotel openings in 2008, increasing competition. “Soon we will see ADR decreasing, as demand will continue to be low and hoteliers will be pushing to fill their rooms. This of course will ultimately drive RevPAR down,” added Panayotis.
According to MKG Hospitality, the economy should slowly recover in 2010-onwards, and when it does, the country will see many major hotel developments.
Hilton is one of many hotel brands who have identified Russia as a key market, with major plans for the future. “Russia represents one of the greatest potential for hotel growth in the world today and we are certainly entering at a pivotal time in its economic development. Over the next ten years, we anticipate that we could see more than 70 Hilton Family hotels across key Russian cities and regional centres,” revealed Vice President Development for Northern Europe, Hilton, Mike Collini.
According to Collini, Hilton will achieve this growth target by working with local developers and hotel owners, through a combination of management and franchise agreements.
Accor is another group with high hopes for the Russian market. “We are one of the few companies that truly believe in the Russian market,” remarked Director of Operations for Russia and CIS, Accor, Alexis Delaroff.
“We will have one or two hotels in each city with more than one million inhabitants. We are also looking at niche cities, where industrial and/or touristic potential is promising. We have over 30 signed contracts all over Russia – from Kaliningrad to Irkutsk, and from Murmansk to Sochi. This is the strength of our portfolio of brands that allow us to find an answer to each specific request of each specific location,” added Delaroff.
Opportunities seem to be greater in key cities such as Moscow and St Petersburg, as well as up-and-coming leisure destinations such as Sochi and the Black Sea coast. Then there is potential in over 30 key regional cities, such as Kazan, Ekaterinburg, Ufa and Perm – particularly for Midscale hotel products.
“Due to the lack of quality hotel guestroom supply, pretty much all regions have very strong potential for development. It is in the economically vibrant industrialised cities where the best potential lies, which is also the basis of our selection criteria for deciding where to go,” explained Senior Vice President Business Development, Rezidor, Arild Hovland – currently the largest hotel operator in Russia with 3,786 rooms in operation.
Improved accessibility from key feeder markets, such as Western Europe and the US, combined with increased wealth and mobility of domestic travellers are all key factors for the growth in Russia’s tourism and hotel industry in recent years. The country’s economic growth over the last decade is also fuelling major infrastructure projects for foreign investors, whilst opening new doors for MICE business.
“MKG expects big things from this market in the near future. Although the current economic crisis has hindered the pace of development, as it has throughout the world, new opportunities have emerged, suggesting that the right time to enter the race might be now,” said Senior Consultant and Director of MKG Hospitality’s office in charge of Russia, Colette Ambiehl.
With the rise of local brands and the growing interest of international chains, including Hilton, Accor and Rezidor, Russia promises to be the world’s next major playground for hotel investors. Together with an accommodation undersupply, short payback periods and high average daily rates, the country remains a very lucrative market.
“Once economic recovery kicks off, there is likely to be built-up demand. At very least, companies should be well-prepared and ready to go,” concluded Ambiehl.
- ends -
About MKG Group
Established in 1985, MKG Group has built a reputation for solid business expertise and substantial know-how in the fields of tourism, lodging and food service. MKG Group meets the needs of each of its clients by providing the valuable analytical and decision-making skills necessary for success. www.mkg-group.com
Methodology & Innovation
With a team of over 60 experienced consultants, as well as advanced research and analytical tools and applications, MKG Hospitality provides unique savoir-faire in four major areas of expertise: Market Research; Financial Feasibility Studies; Consulting; and Sector publications.
MKG Hospitality is a global leader in tourism, hotel and catering consulting, with the largest database in the world (outside the US), representing all segments from budget to upscale hotels. MKG’s customised database, Hotel CompSet, contains a sample of over 200 brands and 11,000 corporate chain hotels, representing more than one million rooms. Hotel CompSet provides daily, monthly and yearly monitoring of hotel indicators and analyses of its sample. www.hotelcompset.com
Together with other specialised brands, MKG Qualiting, OlaKala, Worldwide Hospitality Awards, Global Lodging Forum, HTR Magazine and Hotel Restau Hedbo, MKG Group supports investors, small or large, hoteliers and key tourism players improve performance, boost productivity and achieve optimal results.
For further information, please contact:
Media Contact
MKG Hospitality
Tel: +357 22 44 23 21
Fax: +357 22 31 30 23
E: press@mkg-group.com
Web: www.mkg-hospitality.com
Database Department
MKG Hospitality
Tel: +33 1 56 56 87 87
Fax: +33 1 56 56 87 88
E: bdd@mkg-hospitality.com
Web: www.mkg-hospitality.comhttp://www.mkg-group.com |
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| Keywords |
hotel, hospitality, Russia, Moscow, tourism, travel, economic crisis, economic downturn in hospitality, MKG Hospitality |
| Category |
Travel and Leisure |
| Submission Date |
Jun 20, 2009 |
| Article Contact Name |
Michael Komodromou || send email to Michael Komodromou
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Other links at Travel and Leisure |
| 1. |
Promotional Campaigns Increase Tourists Inflow in Vietnam
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According to our new research report, “Vietnam Tourism Industry Forecast to 2012”, the total tourist arrivals in Vietnam is anticipated to reach around 5.5 Million by 2012, growing at a CAGR of around 7%, on account of the Vietnamese government promotional activities running worldwide.
Vietnam National Administration (VNAT) has been aggressively running various marketing campaigns that contributed to the exponential rise in tourist arrivals in the past few years, said RNCOS report. The VNAT is promoting the country under the slogan "Vietnam--the hidden charm" in the action plans for 2006-2010 to increase the number of visitors from Europe. Besides, other promotional campaigns have been engineered both locally and overseas to attract tourists from all corners of the world.
In wake of volatile world economy which is affecting the international tourism, Vietnam has reduced prices for many tours by 30-50% to boost the tourist inflow in the country. Moreover, Vietnam hosted the 28th ASEAN Travel Forum (ATF), the annual event for all Southeast Asian nations, for the first time in January 2009. The event provided a perfect platform to Vietnam to show how much the country has changed and how ready it is to exploit the tourism industry.
“Vietnam Tourism Industry Forecast to 2012” provides an in-depth analysis of the present and future prospects of Vietnamese tourism industry. It looks into the tourism industry in detail with focus on different parameters like inbound & outbound tourism, expenditure by inbound & outbound tourists, domestic tourism, accommodation facilities, transportation facilities and aviation industry. The report provides strategic insight to clients to evaluate opportunities critical for their success in the Vietnamese tourism industry.
The research also provides forecast on various segments of the industry, including forecast on tourist arrivals in ASEAN countries, international tourist arrivals, international tourism receipts, international tourist departures, domestic tourist arrivals, rooms in hotels & guest houses, hotel rooms in Hanoi, outbound tourists from China, personal disposable income, GDP real change and population breakup of Vietnamese.
For FREE SAMPLE of this report visit: http://www.rncos.com/Report/IM003.htm
Check DISCOUNTED REPORTS on: http://www.rncos.com
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RNCOS Releases a New Report- Turkey Tourism Industry Forecast to 2012
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RNCOS has recently added a new Market Research Report titled, "Turkey Tourism Industry Forecast to 2012 " to its report gallery. Turkish tourism industry has reported remarkable growth over the past few years. The country received more than 26 Million international tourists during 2008. These numbers are expected to grow, despite the current economic crisis, says “Turkey Tourism Industry Forecast to 2012”, a new report from RNCOS.
According to the report, country is becoming a popular destination for health care tourism especially for the European citizens. A part form health tourism other forms of tourism is also becoming popular in Turkey. Factors like rapidly growing income levels, government support and strategically location between the three continents are anticipated to drive the future growth of the tourism industry.
Our report “Turkey Tourism Industry Forecast to 2012” provides an insight into the Turkish tourism market. It evaluates the past, present and future scenario of the tourism market in Turkey and discusses the key factors which are making Turkey a potential tourism destination. This report provides strategic insight to the client, to evaluate the opportunities for their success in the tourism industry of Turkey. With focuses on different parameters of tourism industry, including inbound tourism, outbound tourism, expenditure by inbound tourists, medical tourism, and hotel industry, the report gives a thorough analysis on the tourism industry in Turkey.
The research report provides the detail analysis of the forces that are fuelling the growth in the Turkish tourism industry. The research also covers the overview of the Middle Eastern tourism industry, helping the clients to evaluate and analyze the present and future position of Turkish tourism industry in the region.
The report provides 4-year industry forecast (2009-2012) on various segments of tourism industry based on feasible tourism industry environment in the Turkey. These include:
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For FREE SAMPLE of this report visit: http://www.rncos.com/Report/IM009.htm
Check DISCOUNTED REPORTS on: http://www.rncos.com
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Shoppers’ Paradise - Tourist Expenditure will Surge in Malaysia
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Our new research report, “Opportunities in Malaysian Tourism Industry (2007-2009)”, says that international tourists arriving in Malaysia are expected to increase their expenditure at a CAGR of 6.63% during 2008-2012.
Malaysia is an excellent place for both international and local shoppers as it offers a wide range of products at competitive prices, says the report. Moreover, Malaysia has massive shopping malls and hypermarkets, ethnic stores, duty-free shops and exclusive boutiques that can help it becoming the most preferred shopping destination in the region. According to a survey conducted by Shopping Malaysia Secretariat, a division of Tourism Malaysia, in 2006, Malaysia was ranked as one of the top shopping destinations in the region after Singapore, Hong Kong, Dubai and Tokyo.
The biggest attraction of the year for international shoppers is the Malaysian Mega Sale Carnival, an event organized by the Malaysian Tourism Ministry, Tourism Malaysia and the Shopping Malaysia Secretariat. The event – that lasts for one month and held twice a year - showcases promotions, bargains and discounts of up to 70% on a broad range of products, services and brands at shopping malls and complexes around the country.
The increase in flow of tourists to Malaysia in the past few years is because of aggressive marketing and promotional campaigns by the Tourism Malaysia. One such campaign “Visit Malaysia Year 2007” was launched last year to attract domestic as well as overseas tourists. Such promotional activities are expected to escalate the number of tourists to over 20 Million by the end of 2008.
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“Opportunities in Malaysian Tourism Industry (2007-2009)” provides exhaustive information on the present and future prospects of the Malaysian tourism industry. It thoroughly studies different parameters of the industry, such as inbound & outbound tourism, expenditure, inbound & outbound tourists, accommodation & transportation facilities and medical tourism.
The report also provides forecast on tourist arrivals, tourist arrivals by country, outbound tourism expenditure, outbound tourists and tourism receipts. It helps clients to identify opportunities and factors critical for the success of the industry.
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Trekking in Nepal
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Trekking in Nepal is a paradise, as Nepal has been known to be the best destination for trekkers in the world. Nepal has some of the most spectacular, exciting and breathtaking trekking that nowhere can be found in the world, therefore, Trekking in Nepal is the special for mountain lovers, to those who would like to discover the diverse range of flora and fauna, varieties of the culture or simply to have special holidays in the majestic mountains.
Trekking in Nepal has known for 100 years, as the trekkers come to view the diverse lifestyle of the inhabitants in the mountain regions. No doubt, the hospitality of the people living the Himalayas enchants trekkers in such a way that they come again and again and have fondest memories of Nepal throughout their life.
Nepal is a country of friendly people belonging to many different ethnic groups, each having their own variety of culture, religion, festivals and castes etc.
Nepal owns the lowest elevation to the highest peak of the earth. Furthermore, of the 14 highest peaks above 8,000m in the world, Nepal owns over eight the highest mountains and over 1300 peaks above 6,000 m. Therefore, while you have a trekking in Nepal, you have a chance to explore these giant Himalayas on foot, there is no doubt that you will be exhilarated while you have holidays in Nepal.
Furthermore, most of trekking regions of Nepal are encompassed by national parks, which have a diverse range of wildlife, including rare and endangered species. So, when you have trekking, if you are lucky you may even spot tigers or elusive snow leopards in the Himalayan area.
Your trekking involves walking through diverse forests, from sub tropical to alpine as well as different landscapes, lush alpine meadows and rocky snow covered passes, ice falls, glaciers, high altitude and frozen lakes. Therefore, Nepal can be the best destination to spend your holiday with much thrill.
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| 5. |
Signs of Downturn in Russia Come with Hope
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Russia, February 2009: Moscow has experienced the first signs of the economic downturn, with a five-point drop in chain hotel Occupancy Rate (OR) for 2008, reaching 70%.
Average Daily Rate (ADR) ended the year at €251, only a 5% increase compared to 2007, whilst Revenue per Available Room (RevPAR) decreased slightly to €175.
“These performance indicators released by our market monitoring database, Hotel CompSet, clearly illustrate the first phase of the downward cycle. Although Russia is an emerging market for hotel developers, and indeed will become a goldmine destination in the years ahead, the economic crisis has hindered performance in 2008,” stated Director of Development, MKG Hospitality, Vanguelis Panayotis.
This drop in OR was also fuelled by many new hotel openings in 2008, increasing competition. “Soon we will see ADR decreasing, as demand will continue to be low and hoteliers will be pushing to fill their rooms. This of course will ultimately drive RevPAR down,” added Panayotis.
According to MKG Hospitality, the economy should slowly recover in 2010-onwards, and when it does, the country will see many major hotel developments.
Hilton is one of many hotel brands who have identified Russia as a key market, with major plans for the future. “Russia represents one of the greatest potential for hotel growth in the world today and we are certainly entering at a pivotal time in its economic development. Over the next ten years, we anticipate that we could see more than 70 Hilton Family hotels across key Russian cities and regional centres,” revealed Vice President Development for Northern Europe, Hilton, Mike Collini.
According to Collini, Hilton will achieve this growth target by working with local developers and hotel owners, through a combination of management and franchise agreements.
Accor is another group with high hopes for the Russian market. “We are one of the few companies that truly believe in the Russian market,” remarked Director of Operations for Russia and CIS, Accor, Alexis Delaroff.
“We will have one or two hotels in each city with more than one million inhabitants. We are also looking at niche cities, where industrial and/or touristic potential is promising. We have over 30 signed contracts all over Russia – from Kaliningrad to Irkutsk, and from Murmansk to Sochi. This is the strength of our portfolio of brands that allow us to find an answer to each specific request of each specific location,” added Delaroff.
Opportunities seem to be greater in key cities such as Moscow and St Petersburg, as well as up-and-coming leisure destinations such as Sochi and the Black Sea coast. Then there is potential in over 30 key regional cities, such as Kazan, Ekaterinburg, Ufa and Perm – particularly for Midscale hotel products.
“Due to the lack of quality hotel guestroom supply, pretty much all regions have very strong potential for development. It is in the economically vibrant industrialised cities where the best potential lies, which is also the basis of our selection criteria for deciding where to go,” explained Senior Vice President Business Development, Rezidor, Arild Hovland – currently the largest hotel operator in Russia with 3,786 rooms in operation.
Improved accessibility from key feeder markets, such as Western Europe and the US, combined with increased wealth and mobility of domestic travellers are all key factors for the growth in Russia’s tourism and hotel industry in recent years. The country’s economic growth over the last decade is also fuelling major infrastructure projects for foreign investors, whilst opening new doors for MICE business.
“MKG expects big things from this market in the near future. Although the current economic crisis has hindered the pace of development, as it has throughout the world, new opportunities have emerged, suggesting that the right time to enter the race might be now,” said Senior Consultant and Director of MKG Hospitality’s office in charge of Russia, Colette Ambiehl.
With the rise of local brands and the growing interest of international chains, including Hilton, Accor and Rezidor, Russia promises to be the world’s next major playground for hotel investors. Together with an accommodation undersupply, short payback periods and high average daily rates, the country remains a very lucrative market.
“Once economic recovery kicks off, there is likely to be built-up demand. At very least, companies should be well-prepared and ready to go,” concluded Ambiehl.
- ends -
About MKG Group
Established in 1985, MKG Group has built a reputation for solid business expertise and substantial know-how in the fields of tourism, lodging and food service. MKG Group meets the needs of each of its clients by providing the valuable analytical and decision-making skills necessary for success. www.mkg-group.com
Methodology & Innovation
With a team of over 60 experienced consultants, as well as advanced research and analytical tools and applications, MKG Hospitality provides unique savoir-faire in four major areas of expertise: Market Research; Financial Feasibility Studies; Consulting; and Sector publications.
MKG Hospitality is a global leader in tourism, hotel and catering consulting, with the largest database in the world (outside the US), representing all segments from budget to upscale hotels. MKG’s customised database, Hotel CompSet, contains a sample of over 200 brands and 11,000 corporate chain hotels, representing more than one million rooms. Hotel CompSet provides daily, monthly and yearly monitoring of hotel indicators and analyses of its sample. www.hotelcompset.com
Together with other specialised brands, MKG Qualiting, OlaKala, Worldwide Hospitality Awards, Global Lodging Forum, HTR Magazine and Hotel Restau Hedbo, MKG Group supports investors, small or large, hoteliers and key tourism players improve performance, boost productivity and achieve optimal results.
For further information, please contact:
Media Contact
MKG Hospitality
Tel: +357 22 44 23 21
Fax: +357 22 31 30 23
E: press@mkg-group.com
Web: www.mkg-hospitality.com
Database Department
MKG Hospitality
Tel: +33 1 56 56 87 87
Fax: +33 1 56 56 87 88
E: bdd@mkg-hospitality.com
Web: www.mkg-hospitality.com
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