Hotel industry in MEA post positive figure in December 2013

Posted: February 26, 2014 in travel & tourism

The hotel industry in the Middle East/Africa region reported positive performance results during December 2013 when reported in U.S. dollars, according to data compiled by STR Global.

The region reported a 3.0-percent increase in occupancy to 59.5 percent, a 4.2-percent increase in average daily rate to US$180.65 and a 7.3-percent increase in revenue per available room to US$107.44.

“It has become increasingly difficult to talk about the Middle East as one region when reviewing the performance of the hotel industry”, said Philip Wooller, area director of Middle East and Africa for STR Global.

He said most of the Levant region, which includes Lebanon, Jordan, Syria, Israel and Palestine, remains volatile and the hospitality industry continues to struggle.

“Egypt has made progress in bringing some degree of stability, but it still has some major challenges although there has been some signs of improvement in the traditional tourist areas of the Red Sea Resorts”, Wooller said.

The “Jewel in the Crown” is the United Arab Emirates, which was recently included in the top 10 fastest growing hotspots worldwide in 2013. In November 2013, the Expo 2020 was awarded to Dubai, which will take place in 2020. Dubai plans to double its visitor numbers from 10 million to 20 million in seven years.

“It will be a fascinating journey for Dubai; announcements will soon be released for all the new projects in the run up to the event”, Wooller said. “The numbers alone suggest the hotel supply will need to nearly double from the existing 68,000 rooms to 120,000 rooms”.

Highlights among the Middle East/Africa region’s key markets for December 2013 include (year-over-year comparisons, all currency in U.S. dollars): Sandton and Surroundings, South Africa, reported the largest occupancy increase, rising 19.0 percent to 51.6 percent. Amman, Jordan, followed with a 15.6-percent increase to 56.9 percent;

Cairo, Egypt, fell 15.6 percent in occupancy to 35.1 percent, posting the largest decrease in that metric; Sandton rose 10.6 percent in ADR to US$124.71, reporting the largest increase in that metric; Doha, Qatar (-22.9 percent to US$182.65), ended the month with the largest ADR decrease; Three markets achieved RevPAR increases of more than 10 percent: Sandton (+31.7 percent to US$64.35); Amman (+19.2 percent to US$89.17); and Jeddah, Saudi Arabia (+11.5 percent to US$162.72); Doha fell 16.9 percent in RevPAR to US$119.47, posting the largest decrease in that metric.

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