SINGAPORE: Pan Pacific Hotels Group is optimistic about tourism demand in Southeast Asia despite geopolitical tensions and rising travel costs, as more affluent travellers opt for shorter trips within the region while spending on premium experiences.
The Singapore-based hotel operator said demand has rebounded strongly in the second half of 2026 after a sharp downturn in the second quarter, putting it on track to potentially meet its full-year targets.
Chief executive Choe Peng Sum said the group's properties in Asia performed strongly in the first quarter before demand fell sharply in the second quarter due to the war between the United States and Iran.
Occupancy and average room rates subsequently rebounded in the third quarter, with the group expecting the recovery to continue into the final three months of the year.
Guess WordCrack the word, one row at a timeBuzzwordCreate words using the given lettersMini SudokuTiny puzzle, mighty brain teaserMini CrosswordSmall grid, big challengeWord SearchSpot as many words as you can Show More Show Less"With that upswing, we're beginning to see that we can probably cover our budgets for the whole year," Choe told CNA’s Asia First on Thursday (Oct 15).
He said the conflict affected travel from the Middle East to the group's properties in Kuala Lumpur, Jakarta and Bangkok, but demand from leisure and corporate travellers subsequently picked up.
The recovery comes as Pan Pacific pushes ahead with plans for 10 new-build and major renovation projects across Southeast Asia in 2027.
The projects span Singapore, Malaysia, Thailand, Vietnam, Indonesia, Cambodia and the Philippines, including new luxury hotels in Bangkok and Phnom Penh.