GCC hotel industry to see return to growth
Increasing numbers of travellers from newer source markets such as India, China and Saudi Arabia will facilitate a return to growth in the region’s hotel industry
The GCC’s hotel industry will see a return to growth, but not before a difficult period ahead, according to a latest report by Alpen Capital.
Increasing numbers of travellers from newer source markets such as India, China and Saudi Arabia will facilitate a return to growth in the region’s hotel industry, Hotelier Middle East reported.
The report says that GCC’s hospitality market is expected to grow at a 7.6% CAGR from an estimated $25.4bn in 2015 to $36.7bn in 2020.
However, the market will still face some challenges, facing a tough period last year and a weak average rate environment in 2017.
Long-term market expectations seem more promising with the rise in tourist arrivals stemming from upcoming mega events and government efforts.
HOFTEL CEO Simon Allison said in a statement: “Diversification in new source markets will eventually allow a recovery in hospitality industry performance levels as emerging inbound markets gain traction.”
LL MENA SVP Marko Vucinic agreed saying: “India is now Dubai’s first source market and countries such as China are targeted by Department of Tourism and Commerce Marketing in their campaigns and actions.”
Vucinic did add that the UAE market will remain under pressure in the short term, expecting a more positive sentiment in the longer-term.
“The UAE is currently building its place on the international map with the addition of new leisure, entertainment and tourist offerings,” he said.