The hospitality industry plays a vital role in the economic development of major cities around the world. Cairo, Makkah, Doha, Manama, Abu Dhabi, and Dubai show positive trends in the latest EY Middle East Hotel Benchmark Survey.
In August 2023, Cairo’s hotel occupancy dropped 2.8 percent, but a significant increase in ADR to USD 145 led to a 75.6 percent RevPAR growth.
Promotion via English Premier League, Citadel Festival and Delhi-Cairo flights is expected to boost Cairo’s hospitality sector.
New easyJet flights, the Egypt-South Korea tourism partnership, the Cairo Jazz Festival, and the International Agricultural Exhibition are expected to benefit Cairo’s hospitality sector.
Makkah’s hotel market saw a 28.3 percent RevPAR increase due to a 2.2 percent occupancy decrease and a 32 percent ADR rise.
Additionally, the month’s hospitality success can be attributed to the influx of Umrah pilgrims and the budget packages offered by hotels.
Saudi initiatives like increasing Pakistan flights and cost reduction for pilgrims, along with religious tourism growth, enhance the sector.
Doha’s hotel sector saw a 5.2 percent occupancy decline and a 4.1 percent ADR drop, resulting in a 13.5 percent RevPAR decrease.
Furthermore, the weak hospitality sector performance is linked to lower occupancy due to the addition of 3,000 new hotel rooms and fewer events.
Sports events, the Katara Traditional Dhow Festival, and Doha EXPO 2023 will contribute to the improvement of Doha’s hospitality sector.
Manama’s hotel sector saw a 9.3 percent RevPAR decrease due to a 0.7 percent occupancy drop and an 8.1 percent ADR decrease.
A lack of MICE events likely contributed to the country’s subdued hospitality sector performance.
The 10th Bahrain International eGovernment Forum and COMEX Bahrain 2023 are expected to contribute to a slight improvement in Bahrain’s sector performance.
Abu Dhabi’s hotel market saw a 29.1 percent RevPAR increase, driven by an 11.6 percent ADR increase and 10.9 percent occupancy growth.
International Basketball Week, USDA Basketball Showcase and Yas Island attractions boosted Abu Dhabi’s hospitality performance in the month.
Abu Dhabi’s hospitality sector will thrive with events like ADIHEX 2023 in addition to festivals and reduced government fees.
Dubai’s hospitality sector observed an increase across all KPIs in August 2023 when compared to August 2022.
Additionally, the hotel sector had a 10.4 percent occupancy growth and 3.5 percent ADR increase, leading to a 20.6 percent RevPAR growth.
Furthermore, the success of the hospitality sector can be attributed to events like DSS 2023, summer campaigns and enticing deals.
Dubai’s sector will benefit from events like Cardano Summit, Emirates Dubai 7s, 6th Forex Expo and Automechanika Dubai with large attendance.
The hospitality sectors in these cities reflect a dynamic interplay of various factors, from international events and tourism initiatives to economic policies and local attractions.