According to a Colliers study, India continues to emerge as the major driver of the Asia Pacific (APAC) hospitality industry, notably in Asian Pacific nations such as Thailand, Vietnam, and South Korea.
According to the report, while capital expenditures in the region are now concentrated on high-liquidity markets such as Japan, South Korea, and Australia, India is emerging as a key source of demand.
According to Colliers' research, Indian travelers are becoming a consistent, year-round source of demand for the hospitality business due to rising disposable incomes and an increasing desire for experiencetriggered travel. This trend is contributing to continuous high room rates and indicates a long-term shift in regional hotel dynamics.
According to Nikhil Shah, Managing Director of Hospitality & Alternatives, India is spearheading a structural transition in Asia Pacific's hospitality sector, promoting sustained internal growth while emerging as a strong outbound force.
India is currently important to regional tourist flows, supporting premium rates and modifying travel trends, owing to strong demand in the luxury, lifestyle, and MICE sectors, as well as increasing investor confidence in experience-led assets.
Furthermore, according to Vimal Nadar, National Director and Head of Research at Colliers India, the prognosis for the Indian hospitality industry is positive, with Tier II regions likely to play important roles in the next wave of growth. Interestingly, spiritual tourism is developing as a major driver of inward travel in India, contributing to the expansion of the hospitality business.
Cities such as Phuket, Tokyo, New Delhi, Mumbai, and Osaka led the area in Average Daily Room Rate (ADR) increase in Q1, boosted by robust domestic demand, a surge in foreign travel, and successful market positioning.
The first quarter is historically a slow period for transactions, and in light of geopolitical concerns, it is unsurprising that many took a cautious, 'waitandwatch' strategy. However, as market conditions stabilise and the need to invest money grows, an increase in activity is forecast later in the year, according to Govinda Singh, Colliers' Executive Director.
