Hotels set for recovery in Asia-Pacific as borders reopen but China’s decision to remain shut clouds overall picture

With China’s borders still closed, a full recovery in the Asia-Pacific tourism industry remains a distant prospect, analysts say

US-headquartered Radisson Hotel Group is adding 1,700 hotels and resorts in the region by 2025 to its current 400 properties

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Hotels are gearing up for recovery as borders re-open in Asia-Pacific. Photo: SCMP / Edmond So

Published: 7:30am, 5 Jul 2022Updated: 6:27pm, 5 Jul 2022

Hotels are gearing up for a recovery in Asia’s travel industry as countries begin to roll back Covid-19 restrictions, with companies and even government agencies ramping up marketing campaigns.

However, with China’s borders still closed, a full recovery in the Asia-Pacific tourism industry remains a distant prospect, with China accounting for more than 40 per cent of all tourists in the region historically, according to an analyst at real estate firm JLL.

Hotels have been one of the hardest-hit sectors by the pandemic. When Covid-19 first hit the region in early 2020, an estimated eight out of 10 hotels in Asia-Pacific had to temporarily shut down with estimated revenue losses of at least US$50 billion, according to property services firm Colliers.

In Hong Kong the Shamrock Hotel, once a favourite hang-out for martial arts superstar Bruce Lee, closed down. Meanwhile, the Rosedale Hotel in Kowloon and the Grand City Hotel in Sai Ying Pun were both turned into co-living flats.

As countries in the region begin to either partially or fully reopen to visitors, a sense of optimism in the travel industry has become palpable.