First half of (January to June) 2019 has been a tough period for Goa, wherein room night demand dropped by 4.4% as compared to the corresponding period in 2018. Major contributors to this slowdown have been the grounding of Jet Airways in April, grounding of Boeing 737 Max aircraft, a long drawn general election and reduced international charters primarily from Russia due to the weakening of the Russian Ruble. Another factor that contributed to the drop in the occupancy of branded hotels in Goa is the rise of a variety of affordable lodging formats such as Airbnb and private villas/holiday homes, which has gained popularity among the domestic clientele.
International air passenger traffic in Goa declined from 0.48 mn in H1 of 2018 to 0.46 mn in H1 2019 according to Airports Authority of India (AAI) in their monthly passenger traffic reports. International charter flights during the season months (October to May) of 2018-19 dropped by 17% as compared to 2017-18 to 813 flights with the number of passengers dropping by 12% in the same period to 0.21 mn. On the other hand domestic air passenger traffic in goa has continued to grow almost touching 4 mn passengers in H1 2019, which has proved as the only silver lining in the hotel demand landscape.
Despite the dip in demand, Goa’s hospitality market performance remains stable primarily on the back of room rates. This is evident from the 1.9% growth in ADR in H1 2019 over H1 2018. Goa ranks second in ADR next only to Mumbai. With increasing Meetings, Incentives, Conferences and Exhibitions (MICE) business and growing domestic tourism due to a rise in disposable income, the market is expected to remain stable in the short term.
In the medium to long term, development of Mopa Airport will be a game-changer for the leisure market. It will enable a larger inflow of tourists, both foreign and domestic with an expected handling capacity of 5 million passengers annually. On completion, this development will benefit the entire Goa tourism industry and in particular, will help develop the hospitality market in North Goa and even Sindhudurg district in Maharashtra.
16/09/19 Accomodation Times
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International air passenger traffic in Goa declined from 0.48 mn in H1 of 2018 to 0.46 mn in H1 2019 according to Airports Authority of India (AAI) in their monthly passenger traffic reports. International charter flights during the season months (October to May) of 2018-19 dropped by 17% as compared to 2017-18 to 813 flights with the number of passengers dropping by 12% in the same period to 0.21 mn. On the other hand domestic air passenger traffic in goa has continued to grow almost touching 4 mn passengers in H1 2019, which has proved as the only silver lining in the hotel demand landscape.
Despite the dip in demand, Goa’s hospitality market performance remains stable primarily on the back of room rates. This is evident from the 1.9% growth in ADR in H1 2019 over H1 2018. Goa ranks second in ADR next only to Mumbai. With increasing Meetings, Incentives, Conferences and Exhibitions (MICE) business and growing domestic tourism due to a rise in disposable income, the market is expected to remain stable in the short term.
In the medium to long term, development of Mopa Airport will be a game-changer for the leisure market. It will enable a larger inflow of tourists, both foreign and domestic with an expected handling capacity of 5 million passengers annually. On completion, this development will benefit the entire Goa tourism industry and in particular, will help develop the hospitality market in North Goa and even Sindhudurg district in Maharashtra.
16/09/19 Accomodation Times
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