Middle East’s hospitality industry will start recovery in the fourth quarter of 2020 and this will continue in 2021. This was revealed by Colliers International in a recent report. The recovery will be led by hotels in UAE and Saudi Arabia, Colliers’ Hotel Mark Survey said.
“There is a lot of uncertainty in the market regarding the expected performance of hotels,” the consultancy said. For 2020, hotels in the UAE will have occupancy rates of about 44% on an average. The highest occupancy rates will be seen in Ras Al Khaimah City market (57%), and the lowest in Palm Jumeirah (39%), it said.
In 2021, however, hotel stay demand in the country is expected to considerably recover. Hotels will recover to around 62% occupancy on an average. The highest rates will be seen among hotels in the Dubai Marina/JBR market (69%), and the lowest in Fujairah (49%).
UAE will get a boost from the Expo Dubai, which will start in October 2021 and go on till March 2022. Meanwhile, Saudi Arabia will continue to benefit from on-going tourism initiatives, upcoming mega projects, and domestic tourism. The oil-rich country plans to invest USD 810 billion to boost its tourism sector over the next decade, the report said.