Wednesday, July 17, 2024

UAE, Saudi hotel markets to lead sector recovery in Mena

The hotel markets in the UAE and most of Saudi Arabia (KSA) are expected to lead tourism recovery in the region, in comparison to the other markets, said Colliers, a leading commercial real estate investment management firm in a new report.

While the UAE will benefit from the build-up to the Expo 2020 with the actual event expected to start in the fourth quarter (Q4) of 2021, the KSA market is expected to benefit from the on-going tourism initiatives, upcoming mega projects as well as domestic tourism, the professional services company said in its report titled ‘Mena Hotel Market Forecast – July 2021’.

Saudi Arabia does face a large amount of uncertainty regarding travel and pilgrimage with capacity and access restrictions are expected to impact the holy cities in Saudi Arabia 2021.

•    UAE – The gradual easing of international travel restrictions across the country is expected to have an overall positive affect for the UAE markets, however restrictions in place from key source markets slow demand’s rate of return. A significant revision has been made for the Ras Al Khaimah City sub-market due to long-term project-based demand in the city.

•    KSA – While there is some uncertainty regarding travel and pilgrimage with capacity and access restrictions across the Kingdom, the successful implementation of COVID-related capacity restrictions over the month of Ramadan in the Holy Cities has offered a blueprint for the coming months. As the principal gateway into Makkah, this has had a tangible impact on the Jeddah market, although more muted due to domestic leisure demand.

•    Egypt – The Red Sea markets of Hurghada and Sharm El Sheikh continue to benefit from the return of fights from Russia significantly improving leisure demand. •    Oman – The announcement of new entry bans from high-risk countries and the reinstatement of movement restrictions, are expected to slow recovery in the short term. However, careful approach is expected help the country recover at a faster pace in the medium to long term.

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