Maldives hotel performance weakest in Asia Pacific, new study reveals

Hotels and resorts in Maldives posted the weakest performance in the Asia Pacific region, with Gross Operating Profit Per Available Room (GOPPAR) at -11.8% in the past 12 months, according to the most recent Asia Pacific Hotels Monitor put out by hospitality advisory firm Whitebridge.

The last 12 months saw many good performers in the APAC region, with six markets reaching Average Daily Rate (ADR) growth of over +40%, seven markets recording occupancy growth of more than +50% and three markets, with GOPPAR growth of over +300%, the recent Asia Pacific Hotels Monitor by Whitebridge Hospitality revealed. Despite the slowing down of economies around the world, high inflation and interest rates and the Israel-Palestine war, tourism in the APAC region put up a strong performance in the past 12 months, with China being the key influencer, according to the study.

With GOPPAR of +1,420%, Tokyo emerged as the star performer in APAC, while the Maldives posted the weakest performance with GOPPAR at -11.8%, the study, released in late November, said.

Singapore was the consistent Gross Operating Profit (GOP) leader in the past 12 months (averaging at just under $130 PAR), followed by Vietnam ($80 PAR), China, Thailand, Japan and Malaysia, ranging between $30 and $45 bet GOPPAR.

The Maldives saw the biggest off-season losses. Peaking at more than $300 GOPPAR, almost tripling Singapore’s achievement, the destination’s high operating costs resulted in losses in September 2022 and June 2023.

The findings are in line with the latest data released by the Maldives’ central bank.

A recent report by the Maldives Monetary Authority (MMA) revealed that the occupancy rate of the tourism industry declined to 53% in October 2023, from 58% in October 2022. The operational bed capacity of the tourism industry observed an increase of 3,545 beds when compared with October 2022.

The MMA attributed the decline in occupancy rate to the increase in bed capacity, which outpaced the growth in tourist arrivals. The report also noted that the average stay of tourists observed a decline to 7.6 days in October 2023, from 8.1 days in October 2022.

Overall, for the period January to October 2023, total tourist arrivals increased by 13% in annual terms, while bednights rose by 7%. During the period, the average stay observed a decline to 7.6 days, from 8.1 days in the corresponding period of 2022.