ME Hotel Occupancy Rates Drop in H1

DUBAI — Occupancy rates of hotels in the Middle East dropped in the first half, with Dubai hotels suffering double-digit declines, but Abu Dhabi, Jeddah and Beirut bucked the downtrend, according to business advisory company Deloitte & Touche Middle East.

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Published: Thu 30 Jul 2009, 12:13 AM

Last updated: Sun 5 Apr 2015, 10:32 PM

In its latest analysis of the operating performance of hotels in the region, Deloitte said that hotel occupancy in 22 cities during the first half went down by nearly 11 per cent, while revenue per available room(revPAR) plunged from a year earlier by 17.2 per cent.

Occupancy rates in Dubai, the region’s biggest trade and tourism hub, fell 12.9 per cent compared to the year-earlier period, and RevPAR plunged 35 per cent. Dubai, which appeals to tourists from Europe and Russia for its spread of beaches and luxury hotels, is still reeling from the global financial crisis which had reined in consumer spending. Hotels in Muscat were also among those badly hit as they experience “high seasonality in occupancies and revenues.” Occupancies plunged by 21.7 per cent and RevPAR dropped by 16.6 per cent in the first half. Beirut, Lebanon’s main tourism destination, was the top performer in the period, with occupancy levels jumping by 69.4 per cent and RevPAR soaring by 125.2 per cent from a year earlier. Jeddah in Saudi Arabia trailed Beirut in regional gains, as hotels were not “impacted dramatically” by seasonality. Jeddah hotels’ RevPAR rose by 11.5 per cent from a year earlier until the end of June, while occupancy levels stood at 70.4 per cent. Abu Dhabi also bucked the downtrend as it posted a RevPAR growth of 3.2 per cent in the period. Occupancies, however, went down by 6.8 per cent to 79.2 per cent in the first six months, while RevPAR for Abu Dhabi hotels in June declined by 12.2 per cent compared to the same period last year.

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