The Summer Olympics’ performance gains for Tokyo hotels are projected to be lower now that the sporting event has been pushed back by a year, according to the latest data from STR and Tourism Economics.
“We are projecting less overall demand when compared with our initial forecast for 2020, and while double-digit RevPAR growth is expected, it will come from a much lower base,” said Robin Rossmann, STR’s managing director.
“Lower absolute demand levels would be linked with traveller perception based on the timeline of the Covid-19 pandemic, as well as financial challenges of a potential global recession. The still high level of demand combined with ADR growth should drive RevPAR upward, similar to the growth percentage we saw during last year’s Rugby World Cup in the market.”
Tokyo is expected to see double-digit increases in RevPAR in both July 2021 (+22.1 per cent to 16,968 yen; US$160) and August 2021 (+27.2 per cent to 17,995 yen).
While growth levels are similar to the previous forecast, absolute levels will be much lower. Additionally, as a result of the event date change, the same months in 2020 are forecasted for double-digit RevPAR declines.