Israeli hotels helped by domestic travelers
Israel’s three biggest chains – Fattal, Dan Hotels and Isrotel – lost a combined 850 million shekels (US$253.5 million) in the first half of the year as revenues plunged 60% to 1.9 billion. In Israel, the number of new cases reached a new daily record of 3,000 and many hotels remain closed. But the hospitality industry is starting to recover. Air travel restrictions mean there are still no foreign tourists coming to Israel, but in July and August Israeli domestic vacationers made a difference. In August alone, revenues at Fattal’s Israeli hotels had recovered to 83% of their level the same time in 2019, even though eight of them have yet to reopen.
Colliers: Hotels could boost revenue 20% with co-working
Hotel operators could take advantage of the trend for remote working and adapt their space for a “hybrid hospitality” concept to generate an additional revenue, according to Colliers International. The consultancy estimates that hotels could increase their turnover by as much as 20% by providing office and co-working space. Independent ventures such as Zoku, along with other pioneers of hybrid hospitality, including Hoxton/Ennismore, Accor, Ace Hotels, CitizenM and Kerten Hospitality, have enjoyed success with this concept over the last few years and, according to Colliers, many more hotels are set to mix these functions in the future.
Dalata asset values fall €161M
The hotel assets of Ireland-based Dalata, the listed company behind the Maldron and Clayton hotel brands, have been hit by a fall in value of €161 million (US$191 million), a 12% fall since December 2019. The new figure has emerged as the hotel sector continues to cope with the impacts of the pandemic and as a new report forecasts the number of new hotel rooms in Dublin will fall from a projected 2,200 to 527 this year. The hotel company confirmed the downward revaluation in its recently published half-year results for 2020.
Ghanaian government to roll out US$100M tourism stimulus
The government of Ghana announced plans to roll out a stimulus package of GH600 million (US$103.9 million) to the tourism sector as part of measures to cushion operators in the hospitality industry from adverse effects of the COVID-19 pandemic. Western Regional Minister Kwabena Okyere Darko-Mensah revealed the government plans during the Western and Western-North Regional Tourism Awards in Takoradi. Tourism is a key sector of Ghana’s economy and the fourth-largest foreign exchange for the country.
Phuket hotel group: Domestic travel isn’t enough
Phuket’s hotel industry is reaching a breaking point in terms of surviving the high season, according to the Phuket Hotels Association. In the wake of the controversial “Phuket Model” international travel reopening plan, hotels in Thailand’s leading resort island are unable to sustain operating viability based on domestic tourism, the group says. According to the Airports of Thailand, passenger arrivals at the aviation gateway have plunged 65% year-on-year from January through July of this year. The association predicts that if only domestic travel and business is allowed going forward, it could realistically set the scene for 50,000 job losses in the hotel sector this year.