Monday, July 10, 2017

Most GCC hotel markets report Ramadan business decline

Most major hotel markets in the Gulf Cooperation Council (GCC) reported performance declines during Ramadan 2017 compared with Ramadan 2016, according to preliminary data from STR, a leading analyst.

STR compared the 2017 dates of May 26 through June 25 with the 2016 period of June 6 through July 6.

Muscat, Oman, was the only market that reported an increase in revenue per available room (+8.7 per cent). The market’s 19.4 per cent increase in occupancy outweighed a 9 per cent drop in average daily rate (ADR).

Dubai, UAE, was the only other market that did not report a significant decline in RevPAR, although performance was nearly flat as a decline in ADR (-1.5 per cent) countered an uplift in occupancy (+1.2 per cent).

According to STR analysts, growing hotel supply and geopolitical issues are affecting the region’s performance. School terms also factored into performance results—Saudi Arabia’s school term finished earlier, while school in some countries continued through the Ramadan period.

Makkah, Saudi Arabia, reported an 8.8 per cent decline in RevPAR, which was primarily the result of a 7.9 per cent drop in occupancy to 74.3 per cent. STR analysts note that key religious tourism source markets, including Egypt and Indonesia, are currently facing currency devaluations against the Saudi Arabian Riyal, making it less affordable for potential visitors from those nations to embark on pilgrimages.

Also of note, Qatar reported an occupancy decrease of 7.2 per cent and a drop in ADR of 8.3 per cent.

STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. - TradeArabia News Service

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