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Ups and Downs of MENA Hotels
2011 brought mixed results to hotels located in MENA countries (the Middle East & North Africa). While some countries like Turkey, Saudi Arabia and Kuwait showed improvements in 2011, for some markets of the region the previous year was full of challenges.
Without a doubt, Turkey was the best performing country in 2011. Here the level of RevPAR grew by tremendous 24%. Among the most important driving factors are a dynamically developing economy and instability of many other countries of the region.
The Gulf Cooperation Council countries (GCC) also show positive results. The only country with decreases in profits is Bahrain that also had problems with political unrest in 2011. Experts name the returning corporate and MICE business travellers as the main factor for growth. Of course, intra-regional travelling has also made its input in the overall success of GCC countries.
Hotels in Kuwait show consistent development and are always among the best performers. 2011 was no exception and so the hotels of the country ended the year with the growth of RevPAR of 8%. Healthy business segment and growth of demand are the main factors of improved performance.
The United Arab Emirates finished 2011 with the growth of RevPAR of 7.3%. The performance of the country is mostly geared up by Dubai accommodations, which have managed to attract a significant part of MICE tourists. The Kingdom of Saudi Arabia features the growth of RevPAR of 7%, mostly benefitting from performances of hotels in Jeddah and Riyadh. Hotels in Qatar and Oman show stabilized results.
Increased demand is a good sigh, but 2012 will be full of challenges due to economic slowdown in key source markets for hotels of the region – North America and Europe.
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