DUBAI (Agencies): Hotels in UAE and Saudi Arabia will lead the recovery in Middle-East’s hospitality industry in the fourth quarter of 2020, Colliers International said in a report on Sunday.
UAE will get a boost from the Expo, which will start in October, 2021 and go on till March, 2022. The event was originally expected to pull more than 25 million visitors from around the globe.
Meanwhile, Saudi Arabia will continue to benefit from on-going tourism initiatives, upcoming mega projects, and domestic tourism. The oil-rich country plans to invest $810 billion (Dh2.97 trillion) to boost its tourism sector over the next decade.
“There is a lot of uncertainty in the market regarding the expected performance of hotels,” the consultancy said.
Based on the company’s Hotel Mark Survey results, the recovery in the Middle East and North Africa region will start in the fourth quarter of this year and continue in 2021.
Colliers predicts hotel occupancy rates
For 2020, hotels in the UAE will have occupancy rates of about 44 per cent on an average. The highest occupancy rates will be seen in Ras Al Khaimah City market (57%), and the lowest in Palm Jumeirah (39 per cent).
In 2021, however, hotel stay demand in the country is expected to considerably recover. Hotels will recover to around 62 per cent occupancy on an average. The highest rates will be seen among hotels in the Dubai Marina/JBR market (69%), and the lowest in Fujairah (49 per cent).