Micro market analysis best for MENA says MKG
Economic indicators in mature hotel markets such as Western Europe and North America allow the hotel industry cycle to be more predictable. What about the Middle East region?
According to MKG Hospitality, a mature market is defined by a balance between hotel category supply, a significant corporate chain hotel penetration rate and well balanced clientele, between leisure, business, international and domestic markets, among other aspects. Although hotel chains have a relatively high penetration rate in the MENA region, it is heavily unbalanced, leaning towards the upscale segment. The region also lacks a good amounts of budget hotels, although new pipeline projects from Accor and Rotana show that this is on the way to improving.
"In order to have this clientele spread, the region must diversify its supply offer, with more midscale and budget products to offer alternatives during a recession period, as well as develop new market segments," adds Vanguelis.
Kick-starting this year's HOTEC Middle East panel discussions, sustaining the Middle Eastern hotel industry through the current Economic Crisis,Vanguelis Panayotis detailed the company's research into the actual financial impact of the crisis and hotel cycles in the region, then demonstrated how to use economic statistics and hotel performance indicators to predict the next cycle and trends.
HOTEC Middle East 2009, held at InterContinental Aphrodite Hills, Cyprus offered a good barometer from a supplier's point-of-view, indicating a degree of market confidence during this difficult period and that many hotel developments in the region are still going ahead. This year had over 72 suppliers, 65 buyer delegates and over 1,200 meetings conducted.
"The event exceeded our expectations. All the delegates we have spoken to were very positive about their experience at the event.Despite concerns about the recession, HOTEC Middle East was able to attract great attendance and generate quality discussions about upcoming projects and supply pipeline," concluded Delegate Manager, Mclean Events International, Debbie Wilson.