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Hotel performance in MENA region split down the Middle

Hotel performance in MENA region split down the Middle

Key hotel performance indicators for the Middle East and North Africa region (MENA) are split down the middle, but post very good signs of improvement, according to the latest analysis from MKG Hospitality.

“The good news is that the tide seems to be changing for the MENA region as a whole,” stated director of development, MKG Hospitality, Vanguelis Panayotis.

“Although some countries are still experiencing internal issues, the rest are no longer feeling the brunt.”

Turkey (pictured) remains the MENA region’s star performer in terms of growth, monthly and year-to-date, and has the second highest actual Occupancy Rate (OR) and Revenue per Available Room (RevPAR).

Turkey’s RevPAR in July alone increases by over 22 per cent, solely driven by Average Daily Rate (ADR). At year-to-date, RevPAR increase of over 23 per cent, again driven mostly by ADR.

“Hoteliers here knew all-too-well European holiday-makers would be a lot more interested in Turkey over other competing destinations in the region,” added Panayotis.

The success of Turkey as a tourism destination will be celebrated later this week when the World Travel Awards hosts its Europe Gala Ceremony at Cornelia Diamond Golf Resort & Spa, Anatalya.

Gulf Cooperation Council

Good results in most of the GCC (all except Bahrain) come just before Ramadan, as leisure tourism improves; preparations for the coming months intensify and as last minute business travel get underway.

Kuwait recorded exceptional RevPAR growth at almost 23 per cent – rebounding from a drop this time last year.

This was fuelled by a nine point increase in OR and 4.5 per cent in ADR.

Kuwait also managed to remain one of the better GCC markets at year to date, with over seven per cent RevPAR growth.

The UAE also continues to post positive performances, with over 20 per cent RevPAR growth in July, driven by a significant increase in OR – up by over 13 points over the corresponding period last year.

“The UAE records the largest OR increase in all of MENA for the second consecutive month.

“Indeed, this is a firm sign of market consolidation, perhaps gradually reliving to its former glory.

“Dubai is heading this momentum, especially leisure-resort orientated locations such as Jumeirah Beach,” added Panayotis.

Saudi Arabia also recorded very good growth in OR and ADR, boosting RevPAR by over 14 per cent in July.

Saudi remains the best performing market in the GCC at year-to-date and should also do very well in the coming months.

Meanwhile, Qatar and Oman record RevPAR increases of 7.5 per cent.

These three GCC markets are the only ones to record growth-on-growth, i.e. performing well in both July 2010 and 2011. Bahrain is the only GCC market still unstable, and still struggling, with a significant drop in demand and prices.

Year-to-date results for Bahrain are the worst in the entire MENA region.

Meanwhile, much of North Africa – namely Egypt, Tunisia and Morocco – enjoyed very good growth this time last year.

Thus, with the unstable situation, massive drops are recorded: RevPAR down by almost 37 per cent, 24 per cent and 19 per cent, respectively.