The second-half growth expectations are underpinned by
demand from U.S. election-related events; easier prior-year comparisons; more
inbound international travelers; widely anticipated interest rate cuts; and a
slight uptick in group and business travel. Urban and airport location hotels
are set to outperform, while resort locations will continue to underperform as
post-pandemic leisure travel trends normalize.
The outlook for Northern Latin America (Colombia, Costa Rica
and Mexico) remains strong, with occupancy in Costa Rica this year expected to
surpass its 2019 level of 67%. In Colombia, an improving economy; lower
inflation, interest rate cuts; and government initiatives to bolster the
hospitality sector could potentially attract more than 6 million tourists this
year. Tourism in Mexico is expected to remain strong, attracting foreign
investors and boosting the country’s status as a leading global tourism market.
Europe’s hotel and tourism sectors are poised for continued
expansion, albeit at a more modest pace than in recent years. CBRE expects
healthy growth for key European gateway cities, backed by more inbound
international visitors and corporate travel. Luxury and resort locations will
outperform other segments, reflecting high-income travelers’ preference for
personalized experiences and reduced macroeconomic headwinds. However, after
strong gains in 2023, RevPAR growth is expected to decelerate to around 5% in
2024, with the reduction primarily due to softening U.S. demand.
After continued strong growth in H1 2024, CBRE’s outlook for
the Middle East's hotel and tourism industry remains positive. The first half
of the year witnessed improved hotel operational performance in almost every
major city across the Cooperation Council for Arab States in the Gulf (GCC).
Tourism-related megaprojects were also announced in Saudi Arabia and regulatory
changes in the United Arab Emirates (UAE) should bolster the hospitality
sector.
Except for the Maldives, all hotel markets in Asia Pacific
reported year-over-year increases in RevPAR in H1 2024. Despite ongoing
challenges relating to staffing and aircraft shortages, the region has seen
significant growth in airline travel so far this year.