DESPITE the MENA region managing to sustain excellent results for 2008, hoteliers and other tourism-related organisations can expect a decrease in demand for 2009, according to MKG Hospitality’s market monitoring database, Hotel Compset.
The report also indicated that Oman was by far the most improved destination throughout the Middle East and North Africa (MENA) region in 2008, recording a remarkable 34 per cent RevPAR increase.
According to end of year results released by the market monitoring database Hotel Compset, Oman’s excellent performance was fuelled by a major growth of almost 40 per cent in average daily rate (ADR). Jordan was not far behind, with a 26 per cent growth in RevPAR, driven by a 17 per cent increase in ADR and an 8.4 per cent rise in occupancy rate. Egypt, Qatar, Bahrain, Algeria and Tunisia also all recorded good results.
Overall however, Qatar recorded the highest RevPAR at $223, followed by the UAE at $211 and then Oman and Bahrain, almost equal at $164.
“However much the tourism sector has held up in 2008, and indeed it has resisted the downturn far better than other industries, the economic downturn will start to take its toll in the coming months, as consumers and companies alike continue to cut back on travelling expenses,” stated director of development, MKG Hospitality, Vanguelis Panayotis.
Forecasts suggest that the situation will deteriorate over the next six to nine months.
“Unfortunately this sign might be stronger in some markets such as MENA, where the majority of the rooms are in the upscale and midscale segments, compared to mature markets in Western Europe and the US, where there is more of an equilibrium between hotel categories.”
“The higher the category, the more volatile price is, so we can expect the MENA region to show stronger decreases than markets with more budget rooms. With this in mind, 2009 and 2010 should see the development of more budget-orientated products in the region, such as Express by Holiday Inn, Ibis and the new concept from Rotana, Centro.”
