Market Report 2022

Hotel - Colliers Market Report 2022

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Events in Denmark 2022

Tourists from abroad returning – but when? Although Denmark during the coronavirus pandemic has seen a high rate of domestic tourism relative to other European countries, the hotel industry continues to rely heavily on both foreign tourists and business travellers. However, several fac tors make it difficult to pinpoint exactly when the hotel indus try will bounce back. On one hand, the uncertainty associated with foreign travel may serve to dampen the travel activities of international tour ists; on the other, it may have the upside that the industry experiences an increase in domestic tourists opting for stayca tion and hotel experiences in Denmark instead of taking their holidays abroad. Moreover, as vaccination programmes pro gress, European travel restrictions are eased and businesses increase their travel activity worldwide, the number of foreign bednights will grow. Finally, in 2022 Denmark is going to host several large-scale events that are expected to attract a sub stantial number of non-Danish visitors. Still, although there are no imminent signs of foreign tourists returning on the scale seen before COVID-19 (in 2019, they accounted for more than half of total bednights), leisure and business travellers from abroad are indeed expected to return, driving up occupancy rates in 2022, and consensus has it that the level of leisure- and business-related tourism will stabilise, but not until 2023. Considering the massive capacity expansion schemes launched by the hotel industry in the golden years preceding the pan demic, COVID-19 broke at the worst possible point in time. However, hotel newbuilding seems to have slowed, with no developments to speak of initiated during the coronacrisis. In 2022-2023, only some 2,800 rooms are scheduled for comple tion in Copenhagen, corresponding to an increase of approx 13%. In addition, several newbuilding plans have in common the fact that they were devised when the demand for rooms was at a record high. Broadly speaking, it is too expensive to call a halt to planned newbuilding, and the hotels are opening according to plan or with a couple of months’ delays. Strong supply along with record-low occupancy rates have put severe pressure on the average room rates of mainly low budget and standard hotels, Strong supply and weak demand putting pressure on prices in the short term

Events expected to attract tourist inflow into Denmark in 2022

Cycle races Three Danish Tour de France stages - Grand Départ Copenhagen - Second stage, Roskilde to Nyborg - Third stage, Vejle to Sønderborg Music festivals Copenhagen Jazz Festival (250,000 participants) Roskilde Festival (130,000 participants) “Smukfest” festival, Skanderborg

Foodexpo Foodexpo in Herning (26,000 participants)

Equestrian games World Equestrian Games, Herning (10,000 participants)

Congresses 2022 EHRA EUROPACE Congress 2022 (5,000 participants) EULAR 2022 – Annual European Congress of Rheumatology (14,000 participants) EuroPerio10 (9,000 participants)

Source : Various websites, e.g. MCH.dk, bellacentercopenhagen.dk, letourcph.dk