The GCC hospitality industry is expected to reach USD 32.5 billion by 2022 and to gain positive momentum on account of recovery in oil prices, upcoming mega events, increased tourist inflow, positive regulatory initiatives and increased government spending/investments towards the hospitality and tourism sector. This was revealed in the latest GCC Hospitality Industry report by Alpen Capital.
Sameena Ahmad, managing director, Alpen Capital said that GCC countries are making significant investments into the development of tourism and hospitality infrastructure including airport expansions to increase the handling capacity of anticipated visitors.
The GCC hospitality sector is going through a phase of transition. The industry is gearing up for the huge influx of tourists for mega events, the report said.
Growth in hospitality sector revenue of individual GCC countries is expected to range from six to 12 percent. Both UAE and Qatar are expected to witness high revenue growth on account of significant investment activities in the tourism and hospitality sector for the upcoming Expo 2020 and FIFA World Cup 2022. Bahrain and Oman are also expected to grow at a rate higher than the GCC average.
Key operating metrics of the sector, which have been under pressure in the recent past are expected to show a slow but steady recovery supported by the boost in demand. Economic growth and government initiatives leading to increase in tourist arrivals is expected to support growth in occupancy and room rates. Average GCC occupancy is expected to increase by 6 ppt from 62 percent in 2017 to 68 percent in 2022. ADR is expected to increase at a CAGR of one percent to USD 161 in 2022 whereas the RevPAR is expected to increase at a CAGR of almost three percent to USD 109 in 2022.Add to Favorites