With the hospitality industry playing a vital role in the economic development of major cities around the world, we share the key findings of the EY Middle East Hotel Benchmark Survey January 2024 and how major cities have performed during this period.
Doha and Jeddah
The hospitality markets in Doha and Jeddah experienced remarkable growth in January 2024 compared to the same period last year. Doha’s surge in performance was fueled by major events, such as the AFC Asian Cup 2023 and the ongoing World Horticultural Expo, leading to significant increases in occupancy, ADR and revenue per available room (RevPAR).
Similarly, Jeddah saw an uptick in occupancy and ADR, resulting in substantial RevPAR growth, attributed to events like the Balad Beast 2024 festival and the Jeddah International Travel and Tourism Exhibition. The upcoming Formula 1 STC Saudi Arabian Grand Prix and other MICE events are expected to further boost Jeddah’s hospitality sector.
Amman and Kuwait
Amman witnessed a marginal increase in RevPAR despite a slight drop in ADR. Consequently, there has been an increase in occupancy rates and government efforts to stimulate tourism. In contrast, Kuwait experienced a decline in occupancy and RevPAR, partly due to fewer MICE events hosted during the month. However, ongoing infrastructure initiatives aim to revitalize Kuwait’s hospitality sector in the long run.
Success stories: Dubai and Abu Dhabi
Dubai and Abu Dhabi showcased robust growth in hospitality performance, with both cities experiencing increases in occupancy, ADR and RevPAR. Dubai’s success was attributed to sporting events and festivals, like the World Rugby HSBC Sevens Challenger and the Dubai Shopping Festival. Abu Dhabi’s growth was spurred by events such as the Al Dhafra festival and the launch of tourism enhancement campaigns.
Hospitality outlook
Looking ahead, optimism prevails in the Middle East’s hospitality sector, with expectations of continued growth. Furthermore, the region remains a key player in the global hospitality industry, attracting visitors with its broad range of offerings and vibrant cultural landscape.
