Hotel operator optimism decreasing globally: Horwath HTL

Improved optimism among hotel operators at the start of the year has once again been stymied due to the prevailing global economic uncertainty according to new data from Horwath Hotel, Tourism and Leisure.

Hotel operator sentiment has followed the same pattern of the last three years, with midyear sentiment turning negative after a more optimistic outlook at the start of the year, slumping to a neutral score of 1. Europe’s return to a negative sentiment score has weighed down the global average and in Asia; China had a negative sentiment reflecting the slowing economic growth in that country.

Performance in all three indictors in the first half of 2012 failed to meet hotel operator expectations, with hoteliers slightly more disappointed with occupancy levels than average room rate performance. The sentiment of hoteliers across all world regions, apart from the Americas, has moderated indicating that the improved optimism at the start of the year has once again been stymied due to the prevailing global economic uncertainty. Africa/Middle East recorded the highest sentiment score for this survey, albeit at a modest score of 29. Asia’s sentiment score dropped from a relatively high 37 in February to a score of 10, while Europe’s sentiment score dropped to negative 8. Oceania, on the back of weakening growth in China and a strong local currency sending domestic tourists overseas, has seen its sentiment score drop to -12.

“Once again the ongoing global economic and geo-political uncertainties continue to plague performance levels across the globe and sour the outlook despite the renewed optimism we have seen at the beginning of the year for the past couple of years. With so much economic uncertainty across the globe, sentiment in the hotel industry continues to be weighed down and the assessment is that performance levels will continue to be below expectations,” said Damien Little, a director of Horwath HTL in Asia.