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The Middle East Shows Growth Despite the Unrest

News Even though the so called Arab Spring continues, hotels in the Middle East show better results in terms of hotel development and growth of the number of tourists.

In 2011 the number of passengers in the airports of the region showed a double digit decline, followed by the growing economic turmoil in the second half of the year. However, thanks to such factors as large deposits of oil, growth of population, and resilience to crises hoteliers consider the Middle East one of their strategic locations. Current pipeline of the region estimates 74,000 guestrooms, which will come online within 5 years.

The report prepared by HVS shows that among 45 cities participating 14 reached higher occupancies in the previous year comparing to 2010. Even though many cities still show declines in their occupancy levels, the demand slowly returns to its usual level and forecasts for growth are fairly positive.

Airport expansion may become one of driving forces for success of hotels in the Middle East. The cities of the region already invest US$104 billion into building. Currently the share of the cities of the Middle East in the number of total arrivals estimates 6%. The United Arab Emirates occupies the leading role in the region’s pipeline with 24,500 guestrooms to come. Qatar and its 5,600 guestrooms under building is the second.


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