The Summer Olympics’ performance gains for Tokyo hotels are projected to be lower after the one-year delay in the event, according to the latest forecast from STR and Tourism Economics.
“We are projecting less overall demand when compared with our initial forecast for 2020, and while double-digit RevPAR growth is expected, it will come from a much lower base,” said Robin Rossmann, STR’s managing director. “Lower absolute demand levels would be linked with traveler perception based on the timeline of the COVID-19 pandemic, as well as financial challenges of a potential global recession. The still high level of demand combined with ADR growth should drive RevPAR upward, similar to the growth percentage we saw during last year’s Rugby World Cup in the market.”
