Lower demand for Middle East hoteliers in Q1 2009
Despite falling revPAR across the region there are still some notable success stories. Beirut, for instance, blessed with increasing political stability, continues to achieve the strongest revPAR increases in the Middle East, up 157.6% to US$110 during the first quarter of 2009. Abu Dhabi took fourth position behind Beirut, Makkah and Jeddah in terms of revPAR growth, up 16.8% driven by average room rate growth of 24.3%. Hoteliers in the Emirate have achieved the highest levels of occupancy, average room rates and revPAR in the Middle East.
Pulling down the regional average is Dubai, which experienced the fastest revPAR declines in the Middle East, down 36% to US$203. The Emirate is experiencing an increase in supply when demand from source markets in recession has decreased.
Looking ahead, Rob O’Hanlon, Tourism, Hotel and Leisure partner at Deloitte Middle East, added: “There are several factors that will help ensure a brighter, long term future for the Middle East including its geographical position, mix of source markets, growing importance as an aviation hub and the size of investments in the region. In the meantime, it will be a fine balance between maintaining the standards of quality travellers expect in the Middle East, but at a lower cost; offering greater value while maintaining profitability; and keeping control of budgets while laying the foundations for the future.”
Top five and bottom five Middle East markets by revPAR growth for the first quarter 2009
Notes: All analysis in US$.
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in 140 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's 165,000 professionals are committed to becoming the standard of excellence
PR Manager, PwC
Phone: 020 7213 2538