Key hotel performance indicators for the Middle East and North Africa region (MENA) are split down the middle, but post very good signs of improvement. "The good news is that the tide seems to be changing for the MENA region as a whole. Although some countries are still…
Key hotel performance indicators for the Middle East and North Africa region (MENA) are split down the middle, but post very good signs of improvement. "The good news is that the tide seems to be changing for the MENA region as a whole. Although some countries are still experiencing internal issues, the rest are no longer feeling the brunt," states Director of Development, MKG Hospitality, Vanguelis Panayotis.
Turkey remains the MENA region’s star performer in terms of growth, monthly and year-to-date, and has the second highest actual Occupancy Rate (OR) and Revenue per Available Room (RevPAR). Turkey’s RevPAR in July alone increases by over 22%, solely driven by Average Daily Rate (ADR). At year-to-date, RevPAR increase of over 23%, again driven mostly by ADR. "Hoteliers here knew all-too-well that European holiday-makers would be a lot more interested in Turkey over other competing destinations in the region. In fact, so many tour groups had to be witched over this year," continues Panayotis. However, demand in Turkey only stabilises, indicating that perhaps the days of riding on the unstable situation in the rest of the region might be coming to an end.
Good results in most of the GCC (all except Bahrain) come just before Ramadan, as leisure tourism improves, preparations for the coming months intensify and as last minute business travel get underway. Kuwait records exceptional RevPAR growth at almost 23% – rebounding from a drop this time last year. This was fuelled by a 9 point increase in OR and 4.5% in ADR. Kuwait also manages to remain one of the better GCC markets at year to date, with over 7% RevPAR growth. The UAE also continues to post positive performances, with over 20% RevPAR growth in July, driven by a significant increase in OR – up by over 13 points over the corresponding period last year. "The UAE records the largest OR increase in all of MENA for the second consecutive month. Indeed, this is a firm sign of market consolidation, perhaps gradually reliving to its former glory. Dubai is heading this momentum, especially leisure-resort orientated locations such as Jumeirah Beach," adds Panayotis.
The Kingdom of Saudi Arabia (KSA) also records 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%. These three GCC markets are the only ones to record growth-on-growth, i.e. performing well in both July 2010 and 2011. Bahrain is the only GCC market still unstable, and still 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 – enjoyed very good growth this time last year. Thus, with the unstable situation, massive drops are recorded: RevPAR down by almost 37%, 24% and 19%, respectively.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
