Impact of Arab uprisings continues to lift Dubai hotels

29 April 2012

High growth for revenue per available room in the emirate while Egypt’s halves

Dubai saw a major tourism boost in 2011, as Middle East hotel performance varied radically across the region due to the Arab uprisings hitting visitor and business confidence.

A study of revenue per available room (RevPar) across the Middle East showed that Dubai recorded the highest rate of growth. “Dubai strengthened its position as the regional hotels and hospitality leader,” Jones Lang LaSalle Hotels Middle East & North Africa executive vice president Stewart Coggans told delegates at the Arabian Hotel Investment Conference (AHIC) on 29 April.

“Dubai has [benefitted from] the economic recovery in source markets,” he said, adding that the emirate is expected to enjoy double-digit RevPar growth in 2012.

“Bahrain lost almost half of its hotel performance in 2011,” Coggans said. “It looks unlikely there will be any return to growth this year.”

“Muscat also suffered a fall in visitor volume. “Muscat has a relatively small pool of international hotels, so any additions to the market have bigger RevPar implications,” Coggans said.

In Qatar, the Doha market remains finely balanced and Coggans said he remained “nervous about the performance this small market can deliver”.

As expected, Syria and Egypt experienced a huge decline in 2011. RevPar in Syria fell more than 60 per cent; while in Egypt it almost halved. In Lebanon, RevPar dropped by more than 20 per cent and in Jordan by more than 10 per cent, Coggans said. 

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