UAE TO LEAD THE WAY WITH LUX­URY HOS­PI­TAL­ITY

HotelNews Middle East - - Regional News -

The UAE will con­tinue to lead the GCC’S lux­ury hos­pi­tal­ity seg­ment to 2022, ac­cord­ing to data re­leased ahead of Ara­bian Travel Mar­ket (ATM) 2018.

By 2022 the UAE shall have 73% of ex­ist­ing lux­ury ho­tel stock and 61% of the re­gion’s cur­rent lux­ury pipe­line lo­cated in the coun­try.

Si­mon Press, Se­nior Ex­hi­bi­tion Di­rec­tor, ATM, said: “The open­ing of such iconic prop­er­ties as Burj Al Arab in 1999 and Raf­fles Makkah Palace in 2010, changed the face of lux­ury tourism in the GCC, as well as the sky­lines of its ma­jor cities.

“The re­gion may be work­ing to at­tract a wider vis­i­tor mix, but its com­mit­ment to lux­ury hos­pi­tal­ity and tourism will not take a back seat any­time soon.”

The re­search demon­strates that lux­ury prop­er­ties have in­creased three-fold in the GCC in just 10 years, with 95% of these prop­er­ties op­er­ated by in­ter­na­tional man­age­ment brands.

De­spite tak­ing the lead po­si­tion, the UAE will face strong com­pe­ti­tion from Saudi Ara­bia, which is ex­pected to wit­ness the most sig­nif­i­cant in­crease in lux­ury ho­tel sup­ply to 2022, with a Com­pound An­nual Growth Rate (CAGR) of 18% from 2018 on­wards.

Across the rest of the GCC, this fig­ure stands at 10% in the UAE, 11% in Oman and Kuwait, and 9% in Bahrain.

His­tor­i­cally, Saudi Ara­bia dom­i­nates CAGR trends, with lux­ury prop­erty de­vel­op­ment from 2013 – 2017 ac­count­ing for 11% of the King­dom’s growth in sup­ply, com­pared to 8% in the UAE, 7% in Kuwait, 6% in Oman and 5% in Bahrain.

In 2017, the UAE topped the ta­ble, with 35% of the year’s pipe­line made up of lux­ury projects; most con­cen­trated in Dubai. This com­pares to 14% of projects in Saudi Ara­bia, 20% in Kuwait, 19% in Bahrain and 11% in Oman.

Press added: “The GCC’S rep­u­ta­tion for world-class hos­pi­tal­ity, orig­i­nal con­cepts and lead­ing F&B have se­cured its place as one of the world’s most im­por­tant lux­ury tourism mar­kets at­tract­ing guests from around the globe. The trends we are wit­ness­ing are sup­ported by a num­ber of global de­vel­op­ments in lux­ury spend­ing.”

ATM takes place at Dubai World Trade Cen­tre from April 22-25.

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