The Asia Pacific tourism sector has been booming in recent years, supported by a growing middle-class and rising household incomes, which are enabling more people to take holidays overseas—providing a significant opportunity for the hotels sector. Intra-regional tourism is forecast to grow by 286.3 million trips by 2020 and will remain the key demand driver as people are most likely to travel within the same region for their first overseas trip. International tourist arrivals to the region have also been growing steadily. United Nations World Tourism Organization figures show that the region welcomed 279.2 million international tourist arrivals in 2015 and is predicted to increase to 355 million in 2020. However, despite the increase of tourist arrivals in recent years, hotel performance has been losing momentum. This mismatch between tourism growth and hotel performance is partially due to the struggling traditional full service hotel segment, which has found it challenging to maintain its price premium amid high fixed costs. In addition, revenue among hotels in this segment have been negatively impacted by weaker demand for meeting and convention facilities from multinationals, who remain very cost sensitive. Get the full story at eHotelier and the full report at CBRE Research (free registration)