The Middle East’s market for luxury travel and tourism continues to grow on the back of strong demand from well-heeled travellers
The Middle East today has proportionally the highest number of high-net-worth individuals of any region. A rapidly growing population with a culture of travelling and tax-free income for residents means travellers from the region have never shied from their fondness for luxury travel, hospitality and leisure activities.
This is evident in the fact that the Middle East/Africa hotel development pipeline currently comprises 442 hotels totalling 121,400 rooms, according to the September 2010 STR Global Construction Pipeline Report. Of this 48.7 per cent of hotel rooms are in the ‘luxury’ and ‘upper upscale’ sectors.
As many as 940 new hotels will open in the Middle East and North Africa (Mena) region by the end of 2012, compared to just 678 in Europe. Among the key countries in the region, the UAE dominates the number of rooms in the total active pipeline (52,616) and in the construction phase (26,873).
Abu Dhabi alone has some 14,712 rooms in the total active pipeline and 8,460 in the construction phase. Among these, the upper upscale segment accounts for the largest proportion of rooms in the active pipeline, with 26 per cent, while the luxury segment makes up 21 per cent or 26,816 rooms.
While Dubai was largely affected by the global recession and a lot of projects were cancelled or put on hold, the city continued its streak of new hotel openings. Among those that have launched this year was the much anticipated Armani Hotel at Burj Khalifa.
Other luxury properties that opened this year included the Kerzner group’s second One & Only property on The Palm Jumeirah, the Makkah Clock Royal Tower, A Fairmont Hotel and the Sofitel Al Khobar The Corniche in Saudi Arabia, while the Sofitel Bahrain Zallaq Thalassa Sea & Spa is scheduled to open early next year.
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Raising the bar: the upscale Grand Canal Hotel in Abu Dhabi will be operated by none other than The Ritz-Carlton |
In the pipeline for 2011 is the first Rocco Forte in the region, the Jumeirah Etihad Tower in Abu Dhabi, as well as the first Missoni Hotel in Kuwait scheduled to open March 2011. From the daughter of Italian fashion designer Paolo Gucci, Elisabetta Gucci Hotels and Resorts has announced its plans to have 40 hotels over the next 15 years in the Middle East, Far East and South America and aims to open its first hotel in Dubai at the end of 2010. The construction of the 87-room luxury boutique property is completed.
Destination resorts are fast gaining popularity in the region as well, from the Al Maha Desert Resort in the Dubai Desert Conservation Reserve to the most recently opened Qasr Al Sarab Desert Resort by Anantara, Abu Dhabi. Eco-friendly and luxurious, these resorts offer princely tents and give the modern traveller a taste of the luxuries of a bygone era.
In other sectors cruising is becoming ever more popular with Abu Dhabi having recently secured homeport status, Dubai attracting more passengers each year and other ports in the region upgrading their facilities in order to draw the lucrative trade.
And in aviation the region’s airlines have consistently been voted among the best in the world, while Abu Dhabi-based Royal Jet has launched some of the most technologically-advanced and luxurious business jets in the sector.
* Statistics were contributed by STR Global Reports. For more information, please visit www.str.com.