A new dawn for the MENA region’s hospitality industry

A new dawn for the MENA region’s hospitality industry

Hospitality News Middle East’s editorial team forecasts a bright future for the hospitality industry, which is gathering pace post-pandemic.

Despite geopolitical tensions, the rising price of oil and widespread inflation, the Middle East hotel market is faring, well thanks to the easing of Covid-19 restrictions, which has boosted consumer confidence.
According to the 2022 Colliers’ hotel forecast report for key MENA hospitality markets, the UAE market has been positively impacted by Expo 2020, while the FIFA World Cup Qatar 2022 is expected to produce overspill demand in the key transit hubs of Dubai and Abu Dhabi. However, the rising instability in major CIS source markets is expected to suppress demand, with Dubai and Ras al Khaimah likely to be most significantly affected. Given the diversity of source markets for the UAE, additional hotel demand may be induced from alternative markets at a lower price positioning.

In KSA, the Riyadh Season, coupled with growing consumer confidence, has benefitted both the markets of Riyadh and Jeddah. In addition, there are positive signs regarding the return of pilgrims to Saudi Arabia’s renowned pilgrimage sites, notably Makkah and Madinah. Rising oil prices have historically led to increased corporate demand in Al Khobar/Dammam. However, an increase in outbound travel may reduce this impact.
Turning to Egypt, data shows that Cairo has maintained its rate of growth, although leisure-oriented markets have experienced a marked fall in tourist numbers due to increased competition in the region, as well as travel uncertainty from the key CIS markets. The exception here is the Hurghada market, which has maintained levels of demand. Furthermore, Sahel is proving to be an exciting growth market.

When it comes to Qatar, Doha has experienced a slight decrease in occupancy over H1 2022 compared to the previous year. Nevertheless, the FIFA World Cup Qatar 2022 is expected to result in an unprecedented number of arrivals. According to World Bank data published in March 2022, the Kuwaiti economy is expected to increase by 5.3 percent this year and 3 percent next year, which would put the country on track to achieve its pre-covid growth by 2023, provided that current global inflation does not get in the way.

Furthermore, the Central Bank of Jordan reported that tourist arrivals increased to 716,000 in June, up from 650,000 in May 2022.

Add to Favorites
About author

Rita Ghantous

Rita Ghantous is a hospitality aficionado and a passionate writer with over 9 years’ experience in journalism and 5 years experience in the hospitality sector. Her passion for the performance arts and writing, started early. At 10 years old she was praised for her solo performance of the Beatles song “All My Love” accompanied by a guitarist, and was approached by a French talent scout during her school play. However, her love for writing was stronger. Fresh out of school, she became a freelance journalist for Noun Magazine and was awarded the Silver Award Cup for Outstanding Poetry, by The International Library of Poetry (Washington DC). She studied Business Management and earned a Masters degree from Saint Joseph University (USJ), her thesis was published in the Proche-Orient, Études en Management book. She then pursued a career in the hospitality industry but didn’t give up writing, that is why she launched the Four Points by Sheraton Le Verdun Newsletter. Her love for the industry and journalism led her to Hospitality Services - the organizers of the HORECA trade show in Lebanon, Saudi Arabia, Kuwait and Jordan, as well as Salon Du Chocolat, Beirut Cooking Festival, Whisky Live and other regional shows. She is currently the Publications Executive of Hospitality News Middle East, Taste & Flavors and Lebanon Traveler. It is with ultimate devotion for her magazines that she demonstrates her hospitality savoir-faire.

Your email address will not be published. Required fields are marked *