Belgium: since the political crisis, where do the regions stand in the hotel industry?

It should be recalled that Belgium’s elections of 2014 provided momentum for the Flemish nationalist party that won more votes than ever. Their postures were not so different from those adopted by the Catalan independence fighters who are shaking Spain today. At that time, fears caused by the possible secession of the richest part of the kingdom were such that many already saw the end of united Belgium. Three years later, the crisis seems to have subsided, although tension remains latent, and the arrival of Mr Puigdemont in the Low Country has somewhat resuscitated it.

For the Belgian hotel sector, the last three years were an opportunity to confirm certain constants, but also some notable developments.

Among the confirmation of trends, the Brussels region nonetheless undeniably continues to play an important role in Belgian tourism, despite a difficult year in 2016. In terms of RevPAR, Brussels outperformed its competitors throughout the entire period, except in 2016, when Flanders narrowly ousted it from first place, demonstrating the appeal and resilience of its main metropolises (Bruges, Antwerp, Ghent, etc.). But Brussels should regain its position this year, as the security situation has stabilized there.

Unsurprisingly, the RevPAR gap between the Belgian regions is driven above all by average daily rates, which are much higher in Brussels than in Wallonia for example. In some years, Brussels’ prices were almost 40 euros higher than those in French-speaking region.

However, it should also be noted that Wallonia is making significant progress, driven in particular by an increase in the occupancy rate. While this increase can be explained by the cyclical decline in supply as a result of the ongoing change in the hotel park (particularly in major cities such as Liège), it is nevertheless a good omen, especially as the refurbished supply will be more...