Hotels in Middle East booked up

Hotels in the Middle East recorded the highest occupancy rates in the world during the first half of this year, according to an analysis report by Deloitte Touche Tohmatsu released yesterday. During the first six months of this year, the Middle East's revenue per available room (revPAR) grew by 21.6 per cent to US$135 (Dh496) compared to the same period last year. "The region also had the highest occupancy and average room rates in the world at 75.3 per cent and $180, respectively," said Rob O'Hanlon, the tourism, hotel and leisure partner at Deloitte Middle East.

In Dubai, revPAR grew at a slower pace than last year, up 9.6 per cent to $274. The emirate also achieved the highest occupancy and average room rates of any city in the Middle East, at 85.3 per cent and $321. Resorts in Egypt reported strong revPAR growth, as the country became more popular with tourists due to the low price of luxury accommodation, the report said. Taba came out on top, with revPAR rising 93.2 per cent. However, absolute revPAR in Taba is the lowest in the Middle East, at $27.By comparison, the revPAR of hotels in Europe increased 15.2 per cent to $115. A number of European cities have reported strong growth for the first six months of the year despite the current economic slowdown and the strength of the euro's potential to deter visitor numbers.

Hotels in the Asia Pacific region reported a 13.3 per cent growth in revPAR, reaching $100. Improvements have been driven by increases in average room rates, which now stand at $147. Bali achieved the highest revPAR growth, 38.8 per cent, to $86. North America, the world's largest branded hotel market, was the only region in the world not to achieve double-digit revPAR growth in the first six months this year. While occupancy dipped to 61.5 per cent, average room rates grew 4.8 per cent to $109 - a $5 increase on the same period last year.

Data from the US shows that there has been an increase in weekday demand and a drop in weekend demand, suggesting that leisure travellers are curtailing their travel plans as the economic downturn eats into discretionary leisure spending, the report said. "The strength of some currencies against the US dollar, notably the euro, is presenting a challenge for the hotel industry, particularly in Europe, which is likely to see a downturn in visitor numbers from the US and UK during the remainder of the year," said Alex Kyriakidis, the global managing partner of tourism, hospitality and leisure at Deloitte.

"The US will continue to benefit from an influx in both European and Asian travellers, but the positive impact of inbound visitors is unlikely to offset the downwards pressure as a result of the weakening economy. The Middle East looks set for a fifth consecutive year of double-digit growth, and Asia is also well placed to have another strong year," he added. [e-mail]