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KPI of the Day – State Government: % Hotel occupancy



Measures the average rate at which hotel rooms, in a specific area or territory, are occupied within a given time period.


To monitor the level of business attracted by a hotel in a specific market.


This KPI is relevant as it provides insights into the revenue generation capabilities of hotels and the region. It also impacts the economic activity such as local transportation of the visitors to tourist sites, tourism employment, and services.

Tourism is a vital source of income for any government. Tourism services, in general, account for a substantial contribution to the world’s trade services, as well as a significant participation in the exchange of goods and services.

In the wider context of travel and tourism, % Hotel occupancy, reflects on the capacity of the government to actively attract and retain tourists as a perpetual driver of economic development. The higher the % Hotel occupancy rates, the more income a particular country or region brings to the state or local budget.

This means more room for reinvestment into the community, economic development, rehabilitation and modernization. There are two common types of tourism, and both of them reveal significant contribution to the government budget. Inbound tourism involves non-residents traveling to a particular country or region.

Equally important, domestic tourism involves residents of a particular country or region traveling only within that country or region. Both forms of tourism have a positive impact on % Hotel occupancy rates and on local economies, in general.

Some recommendations on enhancing tourism as a key driver of economic growth include the following:

  • Capitalizing on country brand image and promoting cultural heritage;
  • Investing in both national and international campaigns to advertise reasons for visiting;
  • Using social media influencers to popularize and distribute the best destinations;
  • Focusing on the quality of travel and tourism services.

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