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Asia: Soft revenue growth should rebound in 2014

The Asia Pacific region is on track for another record year of international tourist arrivals in 2013, according to a new report released by Cushman & Wakefield, Singapore. The Asia Hotels View 2014 revealed that estimates showed an 8% growth year-on-year in the first half of 2013.

 Last year, 221.5 million international tourists visited Asia, which was 7.2% higher than in 2011. Of all the sub-regions, Southeast Asia took the lead with a 9.9% year-on-year increase in arrivals. Singapore's strength Akshay Kulkarni, regional director for Cushman & Wakefield said Singapore has seen an addition of about 3,500-plus rooms, yet the operating numbers seem to show little or almost no stress.

 “The capital values are up – which obviously means people are still bullish about the hotel markets and see an upside,” Kulkarni said. “There is still supply that is going to hit the market, which means that the future demand is not in question… Capital values will continue to rise as there will be a premium to be paid for Singapore’s stability. Measured supply potential will ensure that vacancy is not high. However, profitability over the next few years may be affected by the rising costs of manpower, which could affect margins.”