A forecast conducted by Colliers International for hotels of the Middle East and North Africa (MENA) region, for the three-month period from October to December 2017, has shown that Sharm El-Sheikh and Hurghada are the tourism hotspots of the region in that period.
The report mentioned that Sharm El-Sheikh benefitted from higher leisure demand due to the easing of travel advisories from traditional source markets.
In the same context, the report noted a growth in revenue per available room (RevPAR), which explained that the market is growing from last year’s very low base.
Meanwhile, Hurghada fares similarly to Sharm El-Sheikh, as travel advisories from most source markets to Hurghada have now been relaxed, resulting in a surge in international tourism demand.
“The upcoming return of beach weather and school breaks in Fujairah (in the UAE) will keep the RevPAR in line with the rates of last year, without declines,” the report predicted.
Moreover, Colliers International noted that Jeddah, Saudi Arabia is another busy city, as it is benefitting from the Umrah season.
The report added that recovery in the Jeddah market that was observed in the past two months is expected to continue in the fourth quarter, so the RevPAR will be consistent with those of last year.
Furthermore, the report explained that the Al-Khobar market of Saudi Arabia continues to witness the impact of low oil prices.
“Corporate as well as project-based long-stay demand is subdued due to the cancellation of many projects, and no short-term recovery is anticipated,” said the report.
In the same context, the Riyadh market is also witnessing a downward trend in the performance of hotels.
The report explained that a combination of new supply and lower demand has resulted in a dip in its RevPAR, which is expected to continue into the next three months.
Colliers International is a global company specialised in commercial and real estate services, with more than 15,000 employees operating in 68 countries.
These services vary between strategic advice and execution of property sales, leasing and finance, global corporate solutions, property, facility, and project management, workplace solutions, appraisal, valuation, and tax consulting, customized research, and thought leadership consulting.