Sunday 23 February 2020

Dubai's hospitality market No 1 in Mena

DUBAI, August 8, 2017

Dubai emerged as the top hospitality market in the Mena region during the first half of 2017, recording the highest revenue per average room (RevPAR) performance at $209, a new report has revealed.

The first six months of 2017 has been a challenging time for the Mena hospitality industry, which has witnessed a softer performance, with a drop in RevPAR due to a slower global economy and an increase in supply in some of the markets, according to the EY Middle East Hotel Benchmark Survey Report.

Hospitality markets in Cairo, Makkah, and Beirut witnessed the highest RevPAR growth in the region during H1 when compared to H1 2016.

The Middle East Hotel Benchmark Survey Report, produced by EY, provides a monthly and year-to-date performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated properties across the five-star and four-star segments.

Yousef Wahbah, Mena head of Transaction Real Estate at EY said: “The hospitality market across continues to be affected by the drop in oil prices and challenging economic conditions, which has led to more conservative spending in the government and private sectors as well as among regional tourists. An increase in supply in some of the markets like Saudi Arabia and UAE has also contributed to a drop in the performance. The summer months, which are typically seen as the low season in the majority of Mena hospitality markets, are expected to experience lower occupancy and room rates compared to the first half of the year. Starting September, we expect to see an increase in the hospitality market performance in some of the Mena cities due to the Hajj pilgrimage, global forums and regional events being hosted across the region, and regional trips taken during long weekends for upcoming holidays.”

Among the regional markets, Dubai recorded the highest RevPAR performance as the emirate has continued to focus on increasing tourism by means of meetings, incentives, conferences and exhibitions (Mice) events, leisure attractions, exhibitions and conferences, a diverse hospitality supply, and revised visa policies, which have all contributed to its current performance.

Cairo experienced an increase in occupancy of 4.7 per cent points and an average daily rate (ADR) growth of 86.7 per cent, resulting in a RevPAR growth of 101.7 per cent in H1 2017 when compared to H1 2016. A stabilised political situation in the country and increased inbound international travel has contributed to the improvements in the performance of the market.

Kuwait city also saw an increase in occupancy by 5.2 per cent points to 51.5 per cent in H1 2017 compared to the previous year. While the ADR dropped by 4.7 per cent, the city’s RevPAR increased by 6 per cent in H1 2017 when compared to H1 2016.

Beirut witnessed an increase across all hotel performance indicators. An ADR and occupancy increase by 6.6 per cent and 6.6 per cent points respectively led to a 19.3 per cent increase in RevPAR in H1 2017 when compared to H1 2016. Stabilised political conditions, enhanced security measures in the country, and an increase in inbound travel contributed to the improved performance. - TradeArabia News Service

Tags: hospitality | hotel | Mena | Dubai | market | benchmark | EY |

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