Luxury hotels are expected to record what looks like relatively strong growth in 2021. However, measured against the severe losses registered in the two previous years, sales will still be a long way short of their 2018 levels in 2021.
Industry players and the authorities have been targeting staycations that integrate diverse recreational experiences to try and help boost local demand in luxury hotels. The Hong Kong Tourism Board’s “Staycation delights” programme, which was launched in 2021, has been offering locals the chance to benefit from a HKD500 discount on hotel staycation packages when spending HKD800 at retailers and dining outlets in the city.
The competition in terms of offering luxurious experiences remains intense in luxury hotels in Hong Kong. Although luxury hospitality was severely impacted by the pandemic, the total number of outlets has remained stable in 2021.
The second half of 2021 remained a challenging time as border controls were not expected to be fully lifted until 2022, given the prevailing situation in the city. The Hong Kong government has further tightened its border policy to try and avoid any possible inbound cases of COVID-19.
Luxury hotels have been actively collaborating with OTAs since the pandemic hit the region in the offering of low room rates and appealing staycation packages that integrate a range of recreational experiences. As the numbers of inbound arrivals continue to be hard to predict for the immediate future, it is necessary to remain engaged with local consumers virtually via OTAs and other platforms.
While recovery early in the forecast period will be constrained by ongoing restrictions on international travel and consumer concerns about exposure to the COVID-19 virus, as well as challenging economic conditions, a longer-term threat to the recovery of luxury hotels could be the loss of business trade due to an enduring shift to working remotely and online alternatives to in-person meetings and conferences. During the COVID-19 pandemic, companies were forced to establish the infrastructure and routines necessary for business at a distance.
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Understand the latest market trends and future growth opportunities for the Luxury Hotels industry in Hong Kong, China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Luxury Hotels industry in Hong Kong, China, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Luxury: includes luxury and upper upscale hotels. Would generally include 5-star hotels and above, but may include some “4.5-Star” outlets, provided that the brands positioning warrants it. The luxury classification is primarily determined by the brand’s positioning and marketing, which will be at the high-end. Brand examples include Marriott, Hilton, Sofitel and InterContinental.See All of Our Definitions
This report originates from Passport, our Luxury Hotels research and analysis database.
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