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Al Taameer Real Estate Investment publishes Mena hospitality

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Al Taameer Real Estate Investment publishes Mena hospitality - Taameer - Middle East - hotels - property market

Year-on-year growth in hotel occupancy in the Mena region stayed flat at 63.1% in July 2010. The average daily rate (ADR) and revenue per available room (RevPAR) reached $145.0 and $88.82, respectively, recording double digit growth of 11.8% each. As a sub-region, the Middle East recorded the second highest ADR of $162.0 for July 2010, second only to South Africa's ADR of $175.0. However, the Middle East was the only sub-region that experienced a month-on-month decline in RevPAR during the current year. In July 2010, RevPAR declined 0.7% to $88.8 compared to $89.4 in June 2010. RevPAR in the region fell due to a double digit decline in the UAE, Bahrain, Qatar and Oman.

1. Market Update 

1.1 Mena Region 
• As per UNWTO (World Tourism Organization) report, international tourist arrivals to Middle East during the first six month of 2010 increase by 20% compared to the previous corresponding period. 

• Hotel industry in the UAE continued to be negatively affected by the global economic crisis. Abu Dhabi recorded the largest year-on-year drop across all three performance matrices. During July 2010, the hotel occupancy rate in Abu Dhabi fell 23.0% to 51.6%. The ADR decreased 28.1% to $141.5, while RevPAR plunged 44.7% to $73.1. 

• Dubai retained its ranking as the top tourist destination in the Mena region, with 9.0% increase in the number of tourists and 6.0% increase in tourism revenue during the first half of 2010 compared to the previous corresponding period. Around 6,700 rooms opened in Dubai since January 2010 and 3,000 are expected to be added before the end of the current year, increasing total supply 20.0% relative to the previous year. 

• Amman, the capital city of Jordan, recorded the highest year-on-year increase in hotel occupancy (up 14.0% to 68.3%) during July 2010. Revenue from tourism in Jordan aggregated $2bn during the first seven months (January-July) of 2010, a 26.0% increase compared to the previous corresponding period. 


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