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Hotel markets in MENA see better results following the slow period over Ramadan
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News for the Hospitality Executive |
November 2011 - Many
hotel markets in the Middle East & North Africa (MENA) region
bounce back in September with business travel returning to normality.
“Most markets either return to positive growth or at least slow down
the decline, as tourism kicks back into gear following the slow period
during Ramadan. The peak of summer ends, which means business segments
and MICE return to normal, whilst leisure tourism – intra-regional and
international – favour this period,” states director of development,
MKG Hospitality, Vanguelis Panayotis. Markets that manage growth in September perform very well,
especially when considering they are being compared to September 2010
when results were already extremely high. This is mostly evident in the
GCC – all countries except the Kingdom of Saudi Arabia (KSA) and
Bahrain, which still struggles with internal issues. Business and
leisure travel return particularly strong in Oman, also driven by a
number of major conferences, as well as festivals towards the end of
the month. Incredibly good hotel Occupancy Rate (OR) growth in Oman of
over 15 percentage points, coupled with a 10% increase in Average Daily
Rate (ADR) boosts Revenue per Available Room (PAR) by over 45%. Entry
visa for 60 countries have also been eased in Oman, now able to be
obtain upon arrival. This should surely help drive tourism. The UAE
records an increase of almost 10 points in OR, reaching 73% - one of
the region’s highest OR. Together with a 4% rise in ADR, this drives
RevPAR growth of 20%; Dubai being the emirate’s outstanding performer.
Qatar records similar growth in RevPAR, but fuelled more by ADR. OR
increase by 6 points and ADR by 8.3%. Algeria records good growth in
September, over 2 points in OR and over 5% in ADR leading to almost 10%
in RevPAR. Finally, Morocco stabilises in September, and even post
small growth thanks to much better demand.
Turkey is still the outright best performer in terms of year-to-date growth, with RevPAR up by 21%. In September alone, RevPAR increase by over 25%. Average prices driving growth in both periods. At year-to-date, only Turkey, KSA, Kuwait and the UAE remain positive in the region. According to MKG Hospitality’s hotel performance benchmark, overall better results in September have not however helped swing the trend in year-to-date and 12-month rolling period. This time last year, most markets in the MENA region were posting exceptional results, coming off-the-bat of a somewhat delayed economic recovery (when compared to Western Europe and North America). “Month by month, each of these positive periods come out of the 12 month cycle, and in come the months where political instability governs. In turn, results plummet. Indeed, it will take some time before year-to-date results throughout the region are well and truly in positive mode,” adds Panayotis. ABOUT MKG GroupEstablished in 1985 by Georges Panayotis, MKG Group has built a solid reputation for business expertise and substantial European-based know-how in the fields of tourism, lodging and food service. MKG Group meets the needs of each of its clients by providing valuable analytical and decision-making skills necessary for success. www.mkg-group.com |
| For further information , please contact : MKG Group - International Development Department Vanguelis Panayotis T. : +33 (0)1 56 56 87 87 [email protected] MKG Hospitality - Media Contact Michael Komodromou Tel: +44 (0)20 7624 4030 [email protected] Web: www.mkg-hospitality.com
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