Eid travellers boost demand at UAE hotels in July

dubai - Travellers from the GCC drive up occupancy and revenues

Abu Dhabi, Dubai and Ras Al Khaimah (RAK) welcomed more hotel guests in July 2016 compared to July 2015 and this resulted in better revenues, according to Ernst & Young.

Dubai's hospitality market witnessed an increase in occupancy by 6.2 per cent in July 2016 when compared to the same time last year. This resulted in an increase in revenue per available room (RevPAR) by 4.5 per cent from $108 in July 2015 to $113 in July 2016. The average daily rate (ADR) dropped from $177 in July 2015 to $168 in July 2016.

Abu Dhabi's hospitality market witnessed an increase in occupancy from 61 per cent in July 2015 to 68 per cent in July 2016.

In July 2016, RAK's hospitality market witnessed an increase in average occupancy from 48.2 per cent in July 2015 to 65.7 per cent in July 2016. The increase in occupancy resulted in a rise in RevPAR by 27.4 per cent in July 2016 when compared to the same period last year. The higher occupancy was due to the increase in visitor arrivals from 54,155 in July 2015 to 73,326 in July 2016.
"With the Eid Al Fitr holiday falling in July 2016, many of the Mena hospitality markets performed positively compared to the same period last year," Yousef Wahbah, Mena head of transaction real estate at EY, said in a statement.

In GCC, hotels recorded positive RevPAR in July 2016 compared to the corresponding period last year. Saudi Arabia was the only exception, experiencing a drop in performance in its hospitality market across its leading cities, which was due to the change in dates of the holy month compared to July 2015.
The highest occupancy in July 2016 was recorded in Jeddah at 81 per cent, however this was lower than the 84 per cent occupancy in July 2015.
Looking at the wider Mena region, hospitality markets in Beirut and Cairo witnessed a positive increase when compared to the same period last year.

Beirut's hospitality market witnessed an increase in average occupancy from 58 per cent in July 2015 to 63 per cent in July 2016. However, it should be noted that ADR dropped by 23.7 per cent in July 2016 when compared to the same time last year, resulting in a drop in RevPAR from $111 in July 2015 to $92 in July 2016.

Cairo's hospitality market witnessed a positive increase across all key performance indicators in July 2016. Average occupancy increased by 29 per cent in July 2016 when compared to the same period last year. The increase in occupancy was coupled with a jump in ADR from $133 in July 2015 to $144 in July 2016, resulting in a rise in RevPAR from $53 in July 2015 to $98 in July 2016.

The increase in Beirut and Cairo's hospitality market is primarily due to the summer holidays where a number of nationals living abroad return to their home country to spend holidays.

Overall, the Middle East hospitality markets are performing quite well during the traditionally quiet summer period. Hotel performance is expected to dip in August and September as the weather gets hotter, but performance should improve again towards the end of the year.

- abdulbasit@khaleejtimes.com