STR: South America demand outpacing supply for first time since 2011
South America hotel demand is growing at a quicker pace than supply for the first time since 2011, according to data and analysis from STR.
For total-year 2017, demand (room nights sold) increased 4.9%, while supply (room nights available) rose 2.6% in year-over-year comparisons.
“Data from our forecast partner, Tourism Economics, showed that the number of international visitors to South America grew 7% in 2017,” said Patricia Boo, STR’s area director for Central/South America. “That increase, which was higher than the growth rates reported in North America, Central America and the Caribbean, provides an obvious boost to hotel performance. At the same time, the supply situation in the region has stabilized as Brazil is further removed from the supply influx around the World Cup and the Olympics.”
Boo covered the region’s supply/demand dynamic and hotel performance during her presentation earlier today ahead of the World Travel and Tourism Council Global Summit. The media contacts listed below can provide Boo’s full presentation slide deck and arrange interviews for further comment.
For total-year 2017, South America’s occupancy increased 2.2% to 55.9%, and average daily rate (ADR) was up 0.5% to US$104.07. As a result, revenue per available room (RevPAR) grew 2.7% US$58.20.
At the market-level, Buenos Aires posted one of the top RevPAR growth rates at +29.1%. That came as a result of 11.3% growth in occupancy to 68.7% and a 16.1% spike in ADR to ARS2,147.01.
“Buenos Aires showed strong performance across each day of the week with little fluctuation. We see that pattern as an indicator of strong business and leisure performance,” Boo said. “The market is a top destination for MICE (Meetings, incentives, conferences and exhibitions) business, and with a boost from events like the WTTC, Youth Olympic Games and G20 summit, we forecast occupancy to surpass 70% in 2018 with ADR growth being the primary driver of RevPAR growth.”
