TRENDING
HONG KONG HUNKERS DOWN
Getty Images
Hoteliers in Hong Kong , rocked by unprecedented protests , had little to cheer about this past holiday season — and the regional clampdown around coronavirus confirms it ’ s not going to get better anytime soon . December figures showed occupancy and room rates continued the lengthy decline that began when unrest ignited in the former British colony early last year .
STR reported December occupancy at 65 %, with ADRs at HK $ 1,100 ( US $ 142 ), about 30 % lower than the previous year . According to the local tourism board , visitor arrivals in 2019 stood at 55.9 million , a 14.2 % decline over the previous year , even with a nearly 14 % increase during the first half of the year . Arrivals declined almost 40 % as protests stepped up .
Many hotels have confirmed rigorous belt-tightening measures . “ We ’ ve looked at a whole range of cost containment measures ,” says Jennifer Cronin , president of Hong Kong-based Wharf Hotels , which has three properties in the area . “ Our view , as long as it doesn ’ t impact the guest experience , everything is on the table .” Floors have been closed and staff
THE HARDEST THING IS NOBODY KNOWS HOW LONG THIS UNREST WILL LAST .
GIRISH JHUNJHNUWALA , OVOLO HOTELS
has been allowed to take unpaid leave or has been trained for other jobs .
So far , though , no layoffs . “ We think productivity levels are improved , and loyalty to staff is an investment that will pay off long term ,” Cronin says .
Hotels have embarked on promotional schemes , increased social media activity and leveraged customer loyalty programs . “ We ’ ve responded to the unrest with new policies , like cancelation with full flexibility , even on the same day of booking , without charge ,” says Girish Jhunjhnuwala , founder of Ovolo Hotels and chairman of Hind Group .
He says his properties were faring well in the first half of 2019 but saw a drop of 25 % from June to December . “ The hardest thing is nobody knows how long this unrest will last .”
Jesper Palmqvist , area director Asia Pacific for STR , cautions that recovery will likely take a while . “ Most people seem to think that by Q2 we could start seeing some signs of at least slight recovery — but very few I speak to feel Q1 will turn around — so basically we ’ re talking at least about a year before any signs .”
Robert Hecker , managing director Pacific Asia at hotel consultancy Horwath HTL , adds : “ I don ’ t think there ’ s much that can be done to generate demand / recovery given the unpredictability of the protest impacts . Further price declines are unlikely to motivate potential visitors who have been holding off or diverting elsewhere .”
Cronin says hoteliers are pulling together on marketing campaigns and forming a task force to promote the destination .
“ It ’ s really the first time the hotels have gotten together like this ,” she says , adding that they are sharing contacts , mobilizing influencers and social media , and linking with Hong Kong airline Cathay Pacific for the campaign .— RON GLUCKMAN
14 hotelsmag . com March 2020