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  Middle East Region-wide Hotel Occupancy in 1999
Increased by Four Percentage Points to 65%

14 August 2000 - HVS International’s London Office has recently published the 2000 edition of its annual Middle East review, which identifies trends and opportunities in the region’s hotel industry. The survey reports on a sample of 104 mostly branded first-class hotels. These hotels represent more than 31,000 rooms in 13 countries throughout the Middle East.

The report’s authors, Gerard Greene and Seamus O’Loughlin, confirmed that operating performances for hotels in the region were generally much improved in 1999 compared to 1998. 

“As the region recovered from the dampening of the Asian, Russian and Middle Eastern economies in 1998, region-wide occupancy in 1999 increased by four percentage points to 65%,” said Gerard Greene, a senior associate at HVS International. 


Average Annual Room Occupancy %
 
1998
1997
1996
1995
1994
1993
Bahrain Manama 61% 63% 53% 58% 65% 68%
Egypt Cairo 66 74 72 66 62 60
Aswan 26 45 44 22 21 n/a
Hurghada 45 63 70 63 48 n/a
Luxor 28 70 71 42 33 46
Sharm el Sheikh 67 66 72 73 79 72
Israel Eilat 75 75 76 n/a n/a 77
Jerusalem 55 55 68 73 67 70
Tel Aviv 67 67 71 76 70 73
Jordan Amman 57 61 71 74 61 54
Kuwait Kuwait City 46 46 44 41 44 46
Lebanon Beirut 73 69 45 n/a n/a n/a
Morocco Casablanca 68 64 67 57 62 60
Oman Muscat 58 71 64 66 67 61
Qatar Doha 74 78 80 75 61 57
Saudi Arabia Jeddah 62 60 63 66 70 77
Riyadh 63 62 61 62 66 60
Syria Damascus 69 70 68 73 70 79
UAE Abu Dhabi 67 65 66 58 65 62
Dubai 71 73 74 69 74 70
Yemen Sana'a 46 49 52 40 32 56
Average 61% 66% 67% 63% 61% 63%
Source: HVS International
However, average rates largely remained unchanged in 1999.

“Despite the increases in demand for hotels in the region, especially in Egypt, strong increases in supply ensured that average rates remained stagnant in
1999,” added Seamus O’Loughlin, an associate director at HVS International.

The majority of this increasing supply is likely to be branded by the larger international hotel companies such Bass Hotels & Resorts, Starwood Hotels & Resorts and Marriott International.  Moreover, an increasing number of new brands are entering into the region including those both from Asia and Europe. 
Continued overleaf

“The Middle East, in general, has realised that tourism is likely to become an increasingly important source of national revenues in the next few years,” said Gerard Greene. 

Moreover, the authors also highlight several issues that need to be addressed if the region is to realise its full potential. These include:

  • infrastructure development, 
  • human resource training, 
  • relaxation of visa controls, and the 
  • development of ancillary services such as marinas, leisure parks and golf courses. 
The authors conclude that it is likely that demand for hotels throughout the region will continue to increase significantly in the future. 

Copies of HVS International’s Middle East Hotels – Trends and Opportunities 2000 report are available, free of charge, from HVS International, 14 Hallam Street, London W1W 6JG, or on their web-site: www.hvsinternational.com.

###
Contact:
Gerard Greene, Senior Associate 
Tel: +44 20 7878 7710 
[email protected]

Seamus O’Loughlin, Associate Director 
Tel: +44 20 7878 7706 
[email protected]

Russell Kett, Managing Director 
Tel: +44 20 7878 7701 
[email protected]com



 
Also See Egyptian Hotels Recording Exceptional Growth in Rooms Yield in1999 Hotel Benchmark Survey / Arthur Andersen/ May 2000 
Tapping the Middle East Market / PATA / July 2000 


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