In a recent report titled ‘Hotel Investment Trends – India 2023,’ JLL India unveiled significant growth and positive trends in the hospitality sector, particularly during the first quarter of 2024. According to the report, there was a noteworthy 80 per cent Year-on-Year surge in hotel transaction volumes, amounting to USD 78 million in Q1FY24.
The sector has been on an upward trajectory since 2023, witnessing record hotel signings and openings. In 2023 alone, there were 25,176 key signings and 12,647 key openings, with a notable interest in hotel development activities shifting towards Tier-2 cities, accounting for 54 per cent of total signings.
Hotel investments in India surged to USD 401 million in 2023, marking a four-fold increase compared to 2022. A significant portion, 25 per cent of the total transaction value, involved under-construction hotels across both business and leisure destinations. Additionally, 2023 saw a milestone of 22 hotel transactions, the largest in a decade, with three hotel companies debuting on the stock market through IPOs. Greenfield projects in 2023 added approximately 13,600 keys, showcasing developers’ enduring confidence in the sector’s long-term growth potential.
Jaideep Dang, Managing Director of Hotels and Hospitality Group at JLL India, commented, “The year 2023 witnessed record hotel investments, new openings, and signings, setting a strong foundation for 2024. The sector’s enthusiasm is bolstered by the performance of hotel stocks, leading to more companies entering public markets with robust valuations. We anticipate this positive trend to continue in 2024, driven by various growth avenues such as expanding commercial markets and infrastructure development.”
The rebound in the tourism sector has been particularly notable, with global travel and tourism revenues projected to increase by 8.3 per cent in 2024, reaching almost USD 930 billion. This surge marks the highest revenue figure ever recorded in the industry, reflecting a strong resurgence following the pandemic-induced downturn.
Key highlights from the report include:
– High Net Worth Individuals (HNIs) and Institutional Capital were major contributors to hotel investments, accounting for 3 per cent of total investments.- Real estate developers constituted 27 per cent of investments, followed by owner-operators at 11 per cent.
– The upper upscale segment witnessed the highest number of key transactions, followed by upscale, luxury, and midscale segments.
– Five transactions facilitated through the insolvency resolution process under the National Company Law Tribunal (NCLT) represented 33 per cent of the total transaction value, amounting to USD 133 million.
– Management contracts continued to dominate signings, comprising 78 per cent of total key signings, with an increase noted in lease and revenue share models across different tiers, making up 4 per cent of total keys signed. Tier 1 cities experienced a notable increase of 31 per cent in key signings compared to 2022, driven by the robust performance of the commercial sector.
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The US Embassy in India has seen a significant increase in tourist visa adjudications this year according to recent remarks by a senior embassy official. In Fiscal Year 2023, the embassy adjudicated over 700,000 tourist visa applications, an 185 per cent increase from the previous year.
Highlighting the immense scale of operations, the consulate officer revealed that the US embassy, along with its four consulates, constitutes the second-largest consular operation globally, following Mexico. With a total staff of almost 350, the embassy’s workforce has expanded significantly, indicating a concerted effort to manage the increasing demand for visa services.
“We had over 700,000 adjudications in 2023 representing a remarkable 185 per cent increase compared to the previous year. Moreover, India ranks as the largest source of work and student visas globally, further underscoring US’s significance in the visa landscape,” the officer stated.
This makes it the highest single year volume for tourist visas ever processed in India. The official noted they expect the volume to surpass the previous record of 745,000 applications set in 2018.
“I think this year we might actually surpass that we hit records and everything else we do,” the officer said.
While tourist visas make up over 50 per cent of the embassy’s total visa workload, the official stressed they prioritise other visa categories like work and student visas as per US law. However, they have increased staffing levels by over a third to handle the growing demand.
In terms of overall tourist numbers, Indonesia welcomed a staggering 11.67 million visitors in 2023, almost double the number in 2022. Bali alone received 5.23 million visitors, accounting for nearly half of Indonesia’s total tourism arrivals. To boost arrivals from India, plans for Vistara direct flights from Bombay and strengthening Delhi departures are in the pipeline.
To address the surge in demand, the embassy has implemented measures to enhance efficiency and reduce wait times. Despite technical challenges, such as the transition to a new appointment system, efforts to streamline the process have yielded positive results. Notably, wait times have decreased by 75 per cent over the past year, with further improvements expected in the future.”Our wait times have dropped by 75 per cent in the last year. There were over 1000 days in December of 2022 and now they range low to hundreds to around four now,” he stated.
One significant change involves preventing the hoarding of appointment slots by visa travel agents, ensuring fair access to all applicants. This has contributed to a more equitable distribution of appointments and reduced instances of exploitation.
However, the officer acknowledged the ongoing challenges posed by India’s vast population and the corresponding demand for visas. While the embassy remains committed to addressing these challenges, resource limitations necessitate a strategic approach to managing visa operations effectively.
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Japan welcomed more than 2 million visitors for an eighth consecutive month in January, official data showed on Wednesday, setting the stage for a potential record year for tourism.
The number of foreign visitors for business and leisure was 2.69 million last month, down slightly from 2.73 million in December, data from the Japan National Tourism Organization (JNTO) showed.
Arrivals in December were an all-time high for that month and capped a pandemic recovery year that saw a little more than 25 million visitors enter the country.
Tourism to Japan all but halted for more than two years during the COVID-19 pandemic. But the industry was dealt a major tailwind last year by rapid depreciation in the yen that made Japan a bargain compared to many destinations.
Inbound tourism is an increasingly important part of Japan’s economy, and visitors spent more than 5 trillion yen ($33.32 billion) last year for the first time, exceeding the government’s goal.
Arrivals in January were impacted by the major earthquake on Jan. 1 in the western prefecture of Ishikawa, JNTO said, though the number was on par with the level in 2019 when Japan welcomed a record 39.9 million tourists.
Chinese travellers flocked to tourist hot-spots across Asia over the Lunar New Year break, with visitor numbers and spending in destinations including Singapore, Thailand and Malaysia exceeding pre-COVID levels. Visa-free access for Chinese tourists to the Southeast Asia countries boosted traffic and signalled a robust revival in travel since Beijing lifted strict COVID restrictions in early 2023.
Travellers from South Korea, Taiwan, and Australia set an all-time record for any single month. Tourism from China is still far below pre-pandemic levels, when mainland travellers made up nearly a third of all visitors and 40 per cent of tourist spending. But there are signs of life in the segment.
Chinese visitors numbered 415,900 in January, up 33 per cent from the previous month. And department store operators Isetan Mitsukoshi Holdings and J Front Retailing said the Lunar New Year contributed to strong sales of luxury goods and duty-free items in the first half of February.
Chinese visitors may be opting for more leisurely travel this year, a trend known as “chill stay,” as opposed to rushed shopping splurges seen in years past, said Teppei Kawanishi, general manager at travel industry consultancy Honichi Lab.
“The style is to go around one sightseeing spot slowly and enjoy it like the locals,” he added.
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In conversation with ETTravelWorld, Rita Saffioti, BBus MLA Deputy Premier, Treasurer, Minister for Transport; Tourism- Government of Western Australia highlighted a significant surge in Indian tourists to the destination, boasting a 30 per cent increase since pre-Covid times.
“This surge is coupled with a significant growth in the Indian community in Western Australia. The combination of family visits and leisure travel has contributed to a climbing visitation rate. The Indian population in WA has become the third largest in the state, indicating exponential growth that we expect to continue,” she stated, adding that India’s is a fast growing tourism market, with vast untapped potential.
In 2019, India stood as WA’s 11th largest visitor market, witnessing about 31,000 visitors in the state. Fast forward to September 2023, visitor numbers rebounded impressively to 87 per cent of pre-Covid levels. In one of recent interactions with ETTravelWorld, the minister stated that this notable uptick in tourism figures from India, has propelled the country from becoming 11th to the 7th largest market for Western Australia. This growth was driven notably by a nearly 50 per cent increase in spend per person.
“We view India as a crucial market for our tourism sector, and we are eagerly committed to fostering its further growth while concurrently amplifying our endeavours to raise awareness about Western Australia within India,” she stated.
Saffioti had also recently spearheaded a delegation to India aimed at fortifying bilateral relations, exploring fresh avenues for collaboration with the Indian travel trade, and addressing pertinent challenges, including the prospect of establishing a direct flight route.
“There’s a clear interest in establishing direct links, but aircraft availability remains a challenge. The surge in travel post-Covid has led to high demand, and while direct links are not proposed in the short term due to this constraint, we’re actively eyeing for future opportunities when aircraft become available,” she told ETTravelWorld.
Pilgrimage tourism in India earned per cent1.3 lakh crore in 2022, as compared to per cent0.65 lakh crore in 2021, according to the Ministry of Tourism. Post-renovation, the Kashi Vishwanath Dham in Varanasi experienced an unprecedented rise in footfall, attracting 70 million visitors last year, a dramatic increase from the roughly 8 million who visited in the preceding year, demonstrating the growth of spiritual tourism year on year. It is to be noted that 5 per cent of international travel is attributed to pilgrimage reasons.
Saffioti further noted that, based on available reports and indicators, India’s expanding middle class demonstrates a keen interest in exploring new destinations and indulging in unique experiences. Noting the travel segments currently under scrutiny, Saffioti disclosed that the Western Australian government is actively targeting high net worth individuals, in addition to families and honeymooners.She highlighted the adventurous inclinations of this demographic, citing their interest in activities like self-driven expeditions and deep-sea diving adventures. She emphasised the importance of maintaining focus on these unique adventure experiences, given the fact that WA boasts some stunning natural attractions including the coral reef in Exmouth, Rottnest Island, pristine beaches, and unique experiences in the northwest and Kimberley regions.
Additionally, the minister noted culinary tourism as another segment of interest, as the state has an abundance of fresh, locally-sourced cuisine and gastronomic experiences including wine regions.
In terms of marketing strategies, the minister outlined plans for intensified engagement with travel agents and tour operators. “We’re considering more familiarisation tours for the agents to experience Western Australia firsthand, along with enhanced engagement with tour operators. Explaining our unique attractions like the Ningaloo Reef and Rottnest Island will be crucial, alongside increasing marketing budgets for targeted campaigns,” she mentioned.
Notably, Western Australia just concluded its inaugural India Roadshow post-pandemic, spanning three days of meetings with tourism, travel, and trade partners based in India from February 5 to 7.
Collaboratively organised by Tourism Western Australia (WA) and Business Events Perth, the roadshow featured 16 representatives from WA’s hotels, attractions, experiences, and Regional Tourism Organisations (RTOs), showcasing their offerings to over 300 Indian agents in New Delhi and Mumbai.
When asked about any specific target cities for engagements in India going forward, the minister highlighted Chennai, Mumbai, and Delhi as priority markets. She said the aim is to leverage existing ties and explore new opportunities for collaboration.
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Japan welcomed a record number of visitors in December, official data showed on Wednesday, closing out a year of rapid recovery from the Covid-19 pandemic.
The number of foreign visitors for business and leisure rose to 2.73 million last month from 2.44 million in November, data from the Japan National Tourism Organization (JNTO) showed.
It was the highest-ever number of tourists for the month of December and about 8 per cent higher than the pre-pandemic level seen in 2019.
For the full-year 2023, a little more than 25 million visitors arrived in Japan, the agency said.
Tourism to Japan all but halted for more than two years during the pandemic as the country put up some of the world’s strictest border controls. But arrivals bounced back quickly after the government resumed visa-free travel for many countries in October 2022.
Arrivals exceeded 2 million every month since June last year, boosted by a weakening in the yen that makes Japan cheaper compared to other destinations.
Visitors this year are likely to break 2019’s record of 31.9 million, but tourist spending last year may have already reached the government’s goal of 5 trillion yen ( USD33.81 billion), said Teppei Kawanishi, general manager at travel industry consultancy mov Honichi Lab.
Average spending per visitor is about 30 per cent higher than before the pandemic, driven in part by repeat travellers from Taiwan, Hong Kong, and other parts of Asia, Kawanishi said.
“Spending levels are very high nowadays,” he added.
The number of passengers on domestic and international routes exceeded 100 million in 2023, accounting for 81.5 per cent of 123 million recorded in 2019 before the pandemic hit the airline industry, Yonhap News Agency reported citing data from the Ministry. Of international routes, increased travel demand to Japan, Europe and the US helped offset lackluster demand to China last year, the data showed.
December saw record arrivals for any single month among people from Hong Kong, Singapore, and Australia, the JNTO said. That is helping to compensate for a slow recovery in visitors from mainland China, who made up nearly a third of all visitors and 40 per cent of all tourist spending in Japan in 2019. The number of Chinese travellers in December was still 56 per cent below pre-pandemic levels.
Inbound tourism has become a key part of Japan’s economic recovery, but a severe shortage of workers is hobbling the sector’s ability to keep up with demand.
“The industry cannot cope,” said Wanping Aw, managing director of boutique travel agency TokudAw that specialises in private car tours of Japan. “Experienced personnel are burnt out and overworked and have no time to train staff.”
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Vietnam witnessed more than 11.2 million international arrivals in the first 11 months of 2023, 3.8 times higher than the same period last year and equal to 68.9 per cent of pre-pandemic levels, according to the General Statistics Office on Wednesday. South Korea remained Vietnam’s largest tourist source market during the cited period, with 3.2 million arrivals, accounting for 28.5 per cent.
The Southeast Asian country welcomed over 1.2 million foreign tourists in November, an increase of 10.9 per cent compared to the previous month and 2.1 times higher than the same period last year, reports Xinhua news agency.
According to the Vietnam National Authority of Tourism under the Ministry of Culture, Sports and Tourism, South Korea remained Vietnam‘s largest tourist source market during the cited period, with 3.2 million arrivals, accounting for 28.5 per cent.
Vietnam has set the foreign arrival target in 2023 at about 12 million to 13 million tourists, according to the Ministry.
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Visitors to Japan exceeded pre-pandemic levels in October, official data showed on November 15, marking a full recovery in arrivals for the first time since the relaxation of border controls last year.
The number of foreign visitors for business and leisure rose to 2.52 million last month from 2.18 million in September, data from the Japan National Tourism Organization (JNTO) showed.
Visitor numbers improved to 100.8% of levels seen in 2019 before the outbreak of Covid-19 led to travel curbs around the world.
According to Shae Keenan, Chief Marketing Officer, Visit Victoria has the highest level of expenditure among visitors from India, with 39.3 per cent market share. For the year ending June 2023, Victoria in Australia received 168,000 visitors from India, and the Indian visitors spent USD 556 million. And now, Qantas is all set to introduce 3 additional direct flights per week between Delhi and Melbourne in its winter schedule.
Japan ended some of the world’s strictest border measures in October 2022 when it resumed visa-free travel for many countries, and went on to scrap all remaining controls in May. Arrivals exceeded 2 million for each of the five months through October, boosted by a weakening in the yen that makes Japan a bargain destination.
The October figures were aided by a recovery in international flights to 80% of pre-pandemic levels as well as strong demand from Southeast Asia, North America, Europe, and Australia, the JNTO said. Travellers from Canada, Mexico, and Germany reached all-time highs for any month.
The arrivals from other nations are helping to compensate for a slow recovery in visitors from mainland China, which are still 65% below October 2019 figures. That year, Chinese accounted for nearly a third of all visitors and 40% of all tourist spending in Japan.
Almost 20 million visitors have arrived in Japan in the first 10 months of 2023, JNTO data showed, compared to the record of about 32 million in all of 2019.
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