La trade war in which the United States and the China is beginning to have an impact on Asia's leading economic power. Uncertainty about the country's economic future is leading to a fall in investment and a slowdown in consumption. It is true that China's GDP grew by 6.21TP3Q in the second quarter, but this was its weakest growth for more than a decade. A worrying sign is that the vacancy rate for office space - an indicator of economic confidence - in China's major cities is rising sharply. The rate jumped to 18% in Shanghai, 16% in Shenzhen and 11.5% in Beijing.
There is, however, one oasis of prosperity in a region where uncertainty is prompting local investors to exercise greater caution. Tourism in Taiwan is growing rapidly and this is of great benefit to thehotels local. Political relations between China and Taiwan have deteriorated considerably in recent years, leading to a drop in trade between the two entities and, above all, a collapse in mainland Chinese arrivals on the island. From over four million tourists in 2015, the number of Chinese visitors fell last year to just under 2.7 million (-1.51TP3Q). This trend is mainly due to the collapse in group travel, while the number of individual Chinese visitors continues to rise.
In 2018. Taiwan recorded 11 million international arrivalsThis represents an increase of 3.6% compared with 2017. This result is linked to abolition of visas for most Asian countries, boosting tourism. In particular, Taiwan has seen a sharp rise in business tourism from the United States, Europe and Japan.
As a result, the Taiwanese hotel industry continues to see the arrival of new hotels. In 2018, Taipei added more than a thousand rooms. 2019 will see more hotels open their doors in the Taiwanese capital.
August 2018 saw the opening of the Renaissance Shihlin with 104 rooms, followed last September by the Hilton Taipei Sinban and its 400 rooms. Hilton is once again present in Taipei after 16 years away. It was followed by DoubleTree by Hilton in Taipei Zhongshan with 106 rooms. A Courtyard by Marriott also opened last October near the Nangang Exhibition Centre, with a capacity of 465 rooms.
This year, a second Courtyard by Marriott has already opened its doors with 227 rooms, as has The Place Taipei, a four-star hotel with 179 rooms, as well as the first Asian establishment of the American chain Kimpton (129 rooms), part of the Intercontinental group, which has great ambitions in Taipei. IHG is planning six other hotels on the island. A second four-star hotel from the Caesar Park chain is also due to open.
In fact, the strength of the individual traveller and business travel segments is enabling Taiwan's newest hotels to record satisfactory occupancy rates, averaging 60%. This is an encouraging sign, proving that the destination remains attractive to business travellers. According to consultants CBRE, the average hotel occupancy rate reached 61% for the whole island in 2018, and 71% in Taipei.
The next major hotel development will focus on the Taipei Sky Towerwhich is due to open in 2020. At 280 metres high and 46 storeys high, the skyscraper, which is close to the Taipei 101 Tower, will be a landmark in Taipei. the new symbol of Taiwan's capital. It will house two hotels, both under the Hyatt group brand, a Park Hyatt and an Andaz. The two establishments will add some 500 rooms and reinforce the city's image of luxury tourism, with the Park Hyatt becoming Taipei's newest five-star hotel.
