According to data compiled by STR Global, the region’s occupancy in 2009 dropped 10.9 per cent to 62.0 per cent and average daily rate (ADR) decreased 2.7 per cent to $153.91. Revenue per available room (revPAR) decreased 13.3 per cent to $95.44, said the report by the data provider for the hotel industry.
Dubai reported the largest revPAR decrease, falling 31.4 percent to $163.31, followed by Istanbul (-19.5 percent to $127.47). Dubai was also one of only three markets, which experienced ADR decreases. The emirate saw declines of 23.7 percent to $235.48.
Overall in December, the region’s occupancy fell 2.4 per cent to 56.8 percent, ADR dropped 5.6 percent to $166.53, and RevPAR was down 7.9 per cent to $94.53. Two markets ended the month with double-digit occupancy decreases - Abu Dhabi (21.2 per cent to 52.9 per cent), and Beirut (11.6 per cent to 69.1 per cent). The dismal data for the region’s hotel industry came in the wake of a research report that showed that hotel projects worth $7 billion are currently under construction across the GCC. “With the countries in the region taking dynamic initiatives to boost tourist arrivals with a host of attractive programmes, GCC’s hotels are expected to show a surge in occupancy in the coming months. This upswing can particularly be felt in Dubai and Abu Dhabi as both emirates have taken new initiatives to lure holiday-makers, shoppers and exhibitors. Also, the UAE’s burgeoning cruise industry is expected to contribute to this recovery by bringing in tend of thousands of tourists this year,” said a leading tour operator, who does not want to be identified.
Hamad Mohammed bin Mejren, Executive Director Business Tourism at the Dubai Department of Tourism and Commerce Marketing (DTCM), has said the emirate expected to receive 120 ships and more than 325,000 passengers at the new state-of-the art terminal this year compared to 100 vessels and around 260,000 tourists in 2009.
In 2011, DTCM expects to receive 135 ships with 375,000 passengers followed by 150 ships with 425,000 passengers in 2012, 165 ships with 475,000 passengers in 2013 and 180 ships with 525,000 passengers in 2014 and 195 ships with 575,000 passengers in 2015.
Business Monitor International, a leading global economic research and data provider, said tourist traffic to the UAE is expected to recover this year and will gain further growth momentum in 2011 in the wake of promotional campaigns initiated by various emirates.The Dubai-based research firm Proleads, the UAE accounts for most new hotel projects costing $4.4 billion followed by Saudi Arabia ($1.2 billion), Qatar ($620 million), Bahrain ($490 million), Oman ($300 million) and Kuwait ($90 million). According to Lodging Econometrics, a UK hotel real estate research company, the Middle East is likely to see 98 new hotels with 29,226 rooms opening in 2010 and 115 hotels with 33,765 rooms in 2011. “The Middle East/Africa region currently lags behind the other world regions in terms of RevPAR recovery”, said Elizabeth Randall, managing director of STR Global.
“However, as the region entered the downturn later than Europe, Asia/Pacific and North America, we believe this only to be a time lag until the Middle East/Africa region follows the other regions on the recovery path. Within the region, the African hotels performed better with increases in ADR and RevPAR for the month of December.
Beirut, Lebanon, reported the largest increases in all three key metrics for the year. The market’s occupancy rose 27.5 per cent to 70.9 per cent, ADR increased 27.2 per cent to $205.23, and RevPAR jumped 62.1 per cent to $145.53. Muscat, Oman, posted the largest occupancy decrease, falling 21.1 per cent to 53.6 per cent, followed by Riyadh, Saudi Arabia, with a 17.9-percent decrease to 58.3 per cent.
Besides Dubai, only two markets experienced ADR decreases — Istanbul, Turkey (-12.2 percent to $199.30); and Cairo, Egypt (-3.3 per cent to $128.86). Among the key markets in the region, Riyadh reported the largest occupancy increase, rising 18.9 per cent to 52.6 per cent.
· —issacjohn@khaleejtimes.com
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