Focus on MENA hotel sector at ATM 2022

Return to pre-pandemic levels by 2022 expected
2021-11-25
/
/ New Delhi
Focus on MENA hotel sector at ATM 2022

The state of the industry would be discussed at the ATM Hotel Industry Summit, which will take place during ATM at the Dubai World Trade Centre from May 8-11, 2022

As the Arabian Travel Mart, the leading travel show in Middle East, returns to in-person format in 2022, focus will be on the rapid revival of the hospitality sector in the Middle East & North African markets, that are expected to reach pre-pandemic levels next year, thanks to rising business demand and the impact of mega events in the region.
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Even as the hotel industry around the world struggles to find its feet back again, after over 20 months of near-total disruption due to Covid-19 pandemic, hoteliers in one region have enough reason to be cheerful and extremely optimistic as the immediate future looks impressively bright.

A study by real estate management firm Colliers International says that the hotels in Middle East and North Africa (MENA) region are set to see business as usual and at or over pre-pandemic levels as early as next year, even as most other regions are predicting a return to 2019 levels by 2024 at the earliest.

The sharp rise in the MENA region is attributed to impact of some global events, notably the Expo2020 currently underway in Dubai, along with a few others. The UAE market is set for a 12 pc growth in hotel demand in 2021 over the previous year thanks to the Expo2020. They also expect a spillover effect from the FIFA World Cup to be held in Qatar in the year 2022.

Most MENA markets are expected to see hotel occupancy rates bounce back to a very healthy 70 pc or more next year, especially in Dubai, Ras al Khaimah, Cairo, Alexandria and Doha, the venue of the Football World Cup. Despite the recovery, the hospitality industry continues to rely on government support to emerge from the crisis wrought upon them by the pandemic.

The state of the industry would be discussed at the ATM Hotel Industry Summit, which will take place during ATM at the Dubai World Trade Centre (DWTC) from May 8-11, 2022.

The survey says that several regional markets are set to achieve hotel occupancy rates of 70 pc or above in 2022, including Dubai, with high occupancies at Dubai Creek and Festival City (76 pc), Sheikh Zayed Road (74 pc), Palm Jumeirah (78 pc), Dubai Marina and JBR (80 pc). Besides the emirate, other promising markets include Ras Al Khaimah (70 pc), Cairo (70 pc), Alexandria (70 pc) and Doha (72 pc).

While corporate demand, including meetings, incentives, conferences and events (MICE), bolstered the MENA hotel industry’s initial post-pandemic recovery, the Colliers report notes that the region’s domestic and leisure segments are likely to take on an increasingly important role in 2022, amid ongoing changes in operational practices for global business travel.

In addition, the researchers predict that mega events, such as Expo 2020 Dubai and FIFA World Cup Qatar 2022, will not only drive a major influx in demand for their hosts, but are also likely to deliver a beneficial ‘halo effect’ for surrounding markets.

“ATM 2021 proved a major drawcard, despite the many challenges posed by Covid-19. We welcomed 28 main stand holders, including key global and regional hotel brands. Shared stands hosted 390 companies from the hotel sector, most of which fell under the ‘destination’ umbrella, and 45 pc of our exhibitors specialised in accommodation products. With the MENA travel and tourism sector’s recovery now in full swing, we expect ATM 2022 to be even busier,” says Danielle Curtis, Exhibition Director ME – Arabian Travel Market.

The Colliers research notes that consistent government backing for tourism and travel throughout the pandemic has been, and will continue to represent, a key factor in the sector’s recovery. Domestic-focused initiatives, which supported regional hotels during heightened travel restrictions, are expected to result in ongoing improvements for markets such as Ras Al Khaimah, UAE and Riyadh, Saudi Arabia.

Hotel performance in the UAE and Qatar, meanwhile, is expected to receive a further boost from mega events. Expo 2020 Dubai is likely to have a positive impact on all markets in the Emirates, while next year’s FIFA World Cup is predicted to act as a major driver in Q4 2022 – not only for Qatar but also in terms of overspill demand within key transit hubs such as Dubai and Abu Dhabi.

Overall, the UAE’s hotel sector is predicted to witness a 12 pc year-on-year uptick in 2022, while Qatar’s capital city, Doha, is likely to exceed 2019 levels of hotel demand both this year and next.

“The predictions set out in Colliers International’s latest forecast are not only extremely encouraging, but they are also in keeping with the expectations of many other industry experts,” adds Curtis.

ATM will play an integral role in Arabian Travel Week, a festival of events dedicated to enabling travel professionals from all over world to collaborate and shape the recovery of the Middle East travel industry, through exhibitions, conferences, breakfast briefings, awards, product launches and networking events.

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