Govt-led initiatives to drive hospitality market in Mena

dubai — The hospitality market across the Mena region witnessed marginal growth in 2017, according to the latest Middle East Hotel Benchmark Survey Report from EY. Except for Egypt and Kuwait, the region’s hospitality markets witnessed a decrease in RevPAR due to factors such as increased supply, regulatory changes and ongoing reforms in the macro-economic environment.

During 2017, the Dubai market registered the highest RevPAR of $189, followed by Jeddah, which registered a RevPAR of $170. Dubai also had the highest occupancy rate in 2017 at 77.7 per cent with Abu Dhabi following closely at 77.1 per cent. The highest room rates of the year were recorded in Saudi Arabia, with an average daily rate of $300 in the holy city ofMakkah and Jeddah averaging at $266. Cairo’s hospitality market experienced a growth across all KPIs in 2017, resulting in the highest increase in room yield compared to 2016 and a RevPAR of 77.7per cent, due to continued political stability in the country.

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

In the UAE, the hospitality market experienced a dip in RevPAR performance in 2017 compared to 2016, with Dubai and Abu Dhabi experiencing a drop of 6.2 per cent and 2.6 per cent respectively. Ras Al Khaimah however, witnessed an increase of 1.9 per cent compared to 2016.

Abu Dhabi saw an increase in occupancy to 77.1per cent in 2017, a 2.2 per cent points increase compared to 74.9 per cent in 2016, which may be attributed to events such as the Abu Dhabi Food Festival and the New Year’s Countdown Village. Ras Al Khaimah witnessed an increase in occupancy by 2.5 per cent compared to 2016. However, the average room rates decreased by 1.5 per cent to $158 in 2017, from$160 in 2016.

Yousef Wahbah, Mena Real Estate, Hospitality and Construction Sector Leader, said: “The Mena hospitality sector may have seen marginal growth in 2017, but the announcement of several new hotels, government initiatives and the development of several mega projects will help drive tourism in 2018.”