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RevPAR of Hotels in Beirut is 27% Down

News Ernst & Young has published a hotel report concerning the accommodations in the Middle East. It exposes a large decrease in RevPAR of Beirut accommodations in January-November 2011. The decline estimates 27.6% comparing to the same period of the previous year.

Other important figures also show declines. Occupancy is down 11%, and ADR – 14.1%. This is one of the worst results among the Middle East countries. The only destinations with worse results were Egypt (RevPAR of Cairo went down by 48%), and Manama, Bahrain, - minus 52.3%.

Such serious decline in occupancy of hotels in Beirut is the result of several factors. These are political uprisings in neighbor countries, not very beneficial hotel rates and the softening of Euro. Even though hotel rates in Beirut fell down by 14% in 2011, this caused no positive effect on tourist arrivals. According to Ernst & Young, the country needs to pay more attention to advertising covering various markets and needs to provide more security to its guests.

During the same period of 2011 the hotels in Dubai (the UAE) showed an increase in RevPAR of 4.5%, hotels in Riyadh and Medina (Saudi Arabia) – 4% and 4.1% respectively. The success of these markets is in offering stable and open environment and successful companies in the US and China.


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