GCC Hotel Performance Satisfactory Year-to-Date

Key hotel performance indicators for the Gulf Cooperation Council (GCC) region post good signs of improvement, but some MENA countries registered significant drops in occupancy rates, according to MKG Hospitality.

Good results in most of the GCC (all except Bahrain) came just before Ramadan, as leisure tourism improved, preparations for the coming months intensified and as last minute business travel got underway. Kuwait recorded exceptional Revenue per Available Room (RevPAR) growth at almost 23% in July – rebounding from a drop this time last year. This was fuelled by a 9 point increase in occupancy rate (OR) and a 4.5% rise in Average Daily Rate (ADR). Kuwait recorded a 7% RevPAR growth year-todate.

The UAE also continued to post positive performances, with over 20% RevPAR growth in July, driven by a significant increase in OR – up by over 13 points relative to last year. MKG Hospitality mentioned that the UAE recorded the largest occupancy rate increase in the MENA region for the second consecutive month, which is a firm sign of market consolidation. Dubai is heading this momentum, especially leisure-resort orientated locations such as Jumeirah Beach.

The Kingdom of Saudi Arabia (KSA) recorded very good growth in OR and ADR, boosting RevPAR by over 14% in July. KSA remains the best performing market in the GCC at year-to-date and should also do very well in the coming months. Meanwhile, Qatar and Oman record RevPAR increases of 7.5% in July.

Bahrain is the only GCC market still unstable and struggling, with a significant drop in demand and prices. Year-to-date results for Bahrain are the worst in the entire MENA region. Meanwhile, much of North Africa – namely Egypt, Tunisia and Morocco – registered significant drops in RevPAR this year as a result of the unstable situation; RevPAR in Egypt, Tunisia and Morocco went down by almost 37%, 24% and 19%, respectively.

The article above has been published as a part of Bank Audi`s MENA Weekly Monitor of Week 38 (2011). It can be accessed via Internet at the following web address: http://www.banqueaudi.com

Picture credit: Daily Mail