Hong Kong ViewPoint - What Next for Hong Kong's Hotels July 2020
Demand for hotels in Hong Kong has collapsed amid a standstill in regional travel owing to tight visa restrictions, significantly reduced air traffic and risk aversion by travellers – adding to pressure on a market already impacted by local sociopolitical unrest over the course of 2019.
While June saw some signs of optimism following the re-opening of theme parks and discussions about creating travel bubbles with other regional markets to facilitate business and leisure travel, a resurgence in new cases in early July has dented expectations of a quick rebound.
The road to recovery is therefore likely to be a long one. However, Hong Kong’s relative success in containing the virus so far, combined with its long-established reputation as one of Asia’s top travel destinations, can provide a solid foundation for its revival.
This ViewPoint by CBRE assesses the impact of the COVID-19 pandemic on Hong Kong’s hotel market; examines the government’s response in the way of support and incentives; and provides an outlook for what was, and hopefully will return to being, one of the world’s most dynamic hospitality and tourism markets.