According to the World Tourism Organisation (WTO), the travel industry in the Asia Pacific region grew by 40 per cent in 2004, the fastest in any region in the world. This record growth was even more surprising in the shadow of higher aviation fuel prices, the overhanging fear of avian flu and the Indian Ocean tsunami on December 26. Mr. Don Birch, president and chief executive of ticketing and distribution giant Abacus, noted that economies in the Asia-Pacific region were on the rise and such growth in prosperity in markets such as China, India, South Korea and Taiwan and Vietnam has translated very quickly to an increased demand for travel. With the emergence of low cost carriers (LCC) across the region last year and the deregulation of aviation laws in key markets have aided in the sustained growth of travel in the region, especially intra-Asian travel. "Regional economies are on track for 4-6 per cent GDP growth in 2005, which would translate into a travel growth of 6-8 per cent across the Asia-Pacific region," Mr. Birch said. Generally, a one per cent increase in GDP is estimated to boost travel by 1. 5 per cent.

Seven months before Hong Kong's Disneyland is slated to open, its two hotels have started to accept bookings and will charge some of the city's highest rates. The 400-room Hong Kong Disneyland Hotel will have rates starting from HK1,600 (S$205). The Victorian-styled hotel, which is modelled after the Grand Floridian Beach Resort at Walt Disney World in Florida, is built on the shores of the South China Sea. Rates in the 600-room Hollywood Hotel, designed with an Art Deco exterior, will start at HK$1,000. The newest addition to the Disneyland family, its first Asian theme park outside Tokyo, will have 11 specialty shops, eight dining venues with 2,900 seats and an entertainment complex on a 126-hectare site. Disney hopes to tap in the surge in tourism in Hong Kong, which welcomed a record 21.8 million visitors in 2004. Disney forecasts to attract 5.6 million visitors in its first year with two thirds coming from China, Hong Kong and the rest of Asia.

Raffles Holdings Ltd., the hospitality arm of property conglomerate Capitaland, has announced its strategy to adopt an asset light approach to accelerate its expansion plans. Raffles Holdings Ltd, which owns about 40 per cent of the hotel properties it manages, expects this to drop to as low as 25 per cent in the next five years as it focuses on management contracts. As part of its expansion strategy, it is targeting an additional five to six management agreements per annum to enlarge its property portfolio. Additionally, Raffles seeks to add properties in Eastern Europe and US cities like San Francisco and Miami. Chief Executive, Ms Jennie Chua, said "2005 is going to be a good year for the hospitality industry and as a company we're well-poised to take advantage of that". Raffles Holdings manages some 25 hotels across Asia and Europe.

Singapore's Changi Airport, one of the busiest airports in the world, is planning for a new 300-room airport hotel along with a new range of mid-priced shops. The airport's two existing transit hotels, which have a total of 146 rooms, cannot cope with the increasing demand with many guests being turned away during peak periods. The Civil Aviation Authority of Singapore (CAAS) said that due to space constraints, neither hotel was able to expand. The new airport hotel will be situated on a 7,700sqm site with public access from the north basement carpark of the new Terminal 3 is expected to open in 2008. Guests will be able to walk directly from the hotel into Terminal 3 departure hall. The new airport hotel, which is expected to open at the same time as the new terminal, will target travellers on short layovers. Additionally CAAS is continuing the expansion of retail space development which began in 2003. Within this plan are mid-priced stores and food kiosks that will cater to budget travellers. The new mid-priced stores will take up a quarter of the extra 2,000sqm retail floor space created by Terminal 2's S$240 million makeover, which should be completed by the middle of 2006.

Air shows are known to be among the busiest spells for the hotel industry globally, but Bangalore's air show is perhaps bringing in revenues faster than anywhere else in the world. Aero Show 2005, an event which witnessed about 300 companies participating from all over the world was held in Bangalore from February 9 to February 13 and has sent room rates soaring in the Garden City. The Average room Rate (ARR) for the city is expected to touch as high as US$250 for the entire month of February, with some of the hotels like Leela Palace and Taj West End reaching ARR in excess of US$500. Market analysts say hotel rates during the air show this year have increased by 50-100% over the last round in 2003, just as the demand from delegates has moved up. One of the reasons for such high demand is that the global aviation industry will flock to Bangalore in order to ensure a cut in the US$8bn-worth aviation industry in India. The other reason is that there is not much increase in the room inventory, although guest volume has rose phenomenally.