The Hotels and Resorts industry has emerged from the troubled years of the global financial crisis in which revenue stagnated due to weakened demand from both the corporate and tourist segments. Hotels and resorts have also been met with heavy competition from other forms of accommodation, particularly serviced apartments, which have been refined to cater for the lucrative corporate segment.
Industry revenue declined 8.4% and 3.1% in 2008-09 and 2009-10, respectively, as the global financial crisis wrought havoc on consumer sentiment and business confidence. However, the industry has rebounded following a resurgence of inbound tourist numbers, and recovering consumer and business confidence. For this reason, industry revenue is expected to grow by an annualised 3.1%
Despite the decline in revenue at the beginning of the past five years, the Hotels and Resorts industry is in the mature phase of its life cycle. Both domestic and international tourism numbers have been affected by a number of global and local events since the late 2000s. However, they are still in a long-term growth phase, which will benefit the industry in next five years. Future industry revenue growth is expected to be driven by international tourists, particularly from Asia.