Disney magic forecast to fill hotels and lift rates -6/22/05

Hong Kong's hotels will probably be fully booked in the fourth quarter and room rates will jump as much as 30 percent after the opening of the Disneyland theme park, says property consultant DTZ Debenham Tie Leung.

DTZ estimates that visitor arrivals will increase by 12.3 percent this year to 24.5 million, given that growth in the second half usually surpasses the first by at least 10 percent. The figure includes 1.4 million who will come for Disneyland.

``Many hotel operators have forecast room rates to increase by 20 to 30 percent in the fourth quarter in light of the Disneyland effect,'' said DTZ director of investment Alvin Yip.

``Taking into account the increase of hotel supply and inbound tourists, we believe hotels will approach full occupancy in Q4.''