The UAE reaffirmed its competitive lead among the hospitality markets in the Middle East and Africa (Mena) region in April, with Abu Dhabi witnessing the highest occupancy rate of 87.9 per cent and Dubai enjoying the highest revenue per available room (RevPAR) of $235, as well as maintaining the highest average room rate (ADR) of $288.

According to the April 2018 Mena Hotel Benchmark Survey Report by Ernst & Young (EY), high occupancy in both cities can be attributed to global and regionally focused high profile conferences and exhibitions.

Abu Dhabi’s occupancy jumped by 4.7 per cent points from April 2017 to April 2018 thanks to the inaugural 2018 Culture Summit which attracted government officials, philanthropists, art administrators, business leaders, technologists and artists from over 80 countries. In Dubai, occupancy dropped by 3.4 per cent points from April of last year but still maintained one of the highest occupancy rates in the region thanks to events such as the Dubai Property Festival (DPF) and International Property Show (IPS).

It should be noted, however, that Dubai’s RevPAR did decrease by 13.3 per cent, from $271 in April 2017 to $235 in April 2018, attributed to an increase in both hotel supply and traveller preferences for more affordable accommodation.

On the other hand, Saudi Arabia witnessed a downswing in its hospitality segment with a drop in most KPIs of April this year when compared to last year. Makkah’s hospitality market witnessed a significant decrease in RevPAR by 27.9 per cent from $95 in April 2017 to $69 in April 2018. The drop was due to a decrease in occupancy by 9.2 per cent points and a drop in ADR by 17.9 per cent in April 2018 when compared to the same time last year.
Madinah’s hospitality market saw a drop in occupancy by 14.9 per cent points in April 2018 when compared to April 2017, coupled with a drop in ADR by 2.8 per cent. This resulted in a drop in RevPAR by 19.9 per cent from $149 in April 2017 to $119 in April 2018. However, the holy month of Ramadan is estimated to slightly improve these figures in the months to follow.

In Egypt, Cairo’s hospitality sector witnessed the highest increase in occupancy from last year with an 8.3 per cent points jump, from 68.9 per cent in April 2017 to 77.3 per cent in April 2018. This consequentially resulted in RevPAR increasing by 11.5 per cent from $68 in April 2017 to $76 in April 2018, the highest change in the MENA region. This trend can largely be traced back to the resumption of direct flights from Russia to Egypt, resulting in a larger inflow of Russian tourists to the nation with experts estimating around one million Russians will vacation in Egypt this year.

Jordan too enjoyed higher occupancy as Amman’s hospitality market observed a growth in RevPAR by 8.0 per cent, from $88 in April 2017 to $95 in April 2018, as a result of the increase in occupancy by 7.6 per cent points. However, ADR decreased by 3.9 per cent from $144 in April 2017 to $138 in April 2018. The positive spikes in occupancy are supported by the opening of natural reserves in 2018, which has attracted adventure seekers to explore outdoor activities and boosted ecotourism.

Commenting on the report, Yousef Wahbah, Mena Real Estate, Hospitality and Construction Sector Leader at EY, said: "Overall, the Mena hospitality market is expected to experience similar levels of performance over the next few months, with Mice activities tapering off towards the middle of May due to the start of the holy month of Ramadan and the beginning of the summer season.” - TradeArabia News Service