Hospitality Vision Middle East performance review
Striking a balance
2008 was a remarkable year for the Middle East when it celebrated its fifth consecutive year of double-digit growth in revenue per available room (revPAR) and the number of tourists travelling to the region increased more rapidly than anywhere else in the world. However, the financial woes of the rest of the world caught up with the Middle East and hotel performance dipped into the red during December – down 3.2%.
In 2009, with many countries now in recession, consumer and business spending is in sharp decline, with less available for travel. As a result, tourism’s contribution to world gross domestic product is expected to contract by 3.6% this year. Despite the global recession, air traffic continues to rise in the Middle East – up 1.7% in the first two months of 2009 - the only region still experiencing growth. Even though the weakening economy here and across major source markets is now hurting hoteliers, there are still some notable success stories.
There are several factors, including the Middle East’s geographical position, its mix of source markets, its growing importance as an aviation hub and the size of investments in the region that will help ensure a bright, long term future. In the meantime, it will be a fine balance between maintaining the standards of quality that travellers expect in the Middle East, but at a lower cost; offering greater value while maintaining profitability; and keeping control of budgets while laying the foundations for the future.
For further information, download our report ' Hospitality Vision Middle East performance review'. (PDF, 575KB)