STR Global, the leading provider of market information to the global hotel industry, reported new supply growth year to May 2012 with a 3.2 percent increase in the Maldives, according to Hotel news now website.
The media report detailed the STR Global’s study on Maldives and Mauritius showed a 1.7 percent increase of supply in Mauritius. During the same period, demand growth has continued to grow in Mauritius but declined in the Maldives.
“Both the Maldives and Mauritius have been influenced by the state of the economic activities thousands of miles away”, said Elizabeth Randall, managing director of STR Global, the website claimed.
“With the main source of travelers coming from Europe, Mauritius’ RevPAR growth has been mostly influenced by the Eurozone crisis, foreign exchange rates and increasing airfare duties. In the Maldives, whilst demand from European visitors declined, the emergence of growing wealthy Chinese travelers has benefited hotels to remain one of the top luxury destination around the world”.
Hotel supply increased by 2.0 percent in the Maldives in 2011 and continued to increase by 3.2 percent during the first five months of 2012, compared to the same period prior year.
During the same period, demand grew by 10.2 percent in 2011 but declined by 3.8 percent to May 2012. The decline was the combined result of a short-lived new legislation aimed at banning hotel spas at the end of the year 2011, creating a very unpopular reaction amongst travel agencies and foreign travelers.
Whilst later on the new rule was overturned, by February the political unrest in Male threatened the peaceful image of the remote islands. These uncertainties affected demand year-to-May 2012, leading occupancy to decline by 6.8 percent to 66.9 percent. The good news is that average daily rate (ADR) increased by 19.1 percent to €567.78 year on year (+31.4 percent in local currency or +7.8 percent in Chinese Yuan Renminbi) as Chinese visitors, who have become the main source market for the islands, compensated for the declining European demand including visitors from the U.K, the website in reference to STR Global stated.
Tourism Ministry is currently engaged in efforts to hit the one million mark in tourist arrivals by the end of this year.