MALL FEVER IN THE MENA BOOSTING HOTEL OCCUPANCY
Hotels developed in and around the region’s shopping malls can expect to post an average daily rate (ADR) 25 percent higher than those away from retail attractions. The findings are published in a report by Colliers International, released ahead of Arabian Travel Market (ATM) 2017. Such hotels enjoy a stronger business performance overall, not only beating seasonal fluctuations in tourist arrivals, but contributing to the drive to attract more tourists over the traditionally quiet summer season. For retail tourists, shopping malls and the facilities they offer, form an integral part of trips to the UAE. Hotels capitalize on this by offering promotional packages and free transportation, as well as cross-marketing discounts and free vouchers with retail partners. The UAE has the strongest retail tourism sector in the region and Dubai takes the lead among the seven emirates, with retail accounting for more than 40 percent of total tourism spending. Other major GCC cities are also looking to replicate the success. Muscat is welcoming two mega retail destinations: The Palm Mall and Al Araimi Boulevard Mall. Two large projects are also planned for Riyadh over the coming years. The first, to be completed in 2018, will be Mall of Arabia, joined by the first phase of Mall of Saudi in 2022, comprising a hotel, in addition to other retail and F&B facilities. Qatar’s retail landscape is also gathering momentum, following the launch of the Mall of Qatar and Doha Festival City.