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Colliers anticipates fastest recovery for Emirati, Saudi hotel sectors in MENA Cairo, Sharm El-Sheikh hotels to record occupancy rate increases of 46% and 41%, respectively, says Colliers International
A Colliers International report on 2020/21 hotel occupancy rates anticipates the UAE and Saudi Arabia's hotel sectors will witness the fastest recovery in the Middle East and North Africa (MENA) region. The report considered the impact of the coronavirus (COVID-19) pandemic on 24 submarkets in key MENA hospitality markets, and forecast occupancy rates in the coming year. It also anticipates that the MENA region's hotel sector can expect the post-pandemic recovery to begin in the fourth quarter (4Q) of 2020, to continue into 2021, according to Colliers International It anticipates that the UAE is likely to benefit from the build up to EXPO 2020, which has been postponed until 2021 due to the global pandemic. Saudi Arabia's hotel market forecast for 2020 assumes restricted access to Mecca and Madinah for pilgrims during Ramadan and the Hajj. Once the expected recovery begins in 4Q 2020, it is anticipated that markets will continue benefiting from on-going tourism initiatives, upcoming mega projects as well as domestic tourism. Colliers reported that Cairo hotel occupancy is forecast to reach 44% in 2020, with a decrease of 44% in y-o-y occupancy variance. The report expects Cairo hotel occupancy will reach 65% in 2021, with a 46% y-o-y occupancy variance. Sharm El-Sheikh hotel occupancy is expected to reach 31% in 2020, with a decrease of 47% in y-o-y occupancy variance. It is projected to reach 43% in 2021, and a 41% y-o-y occupancy variance increase. Hurghada is expected to record 34% occupancy in 2020, with a drop of 49% in y-o-y occupancy variance. However, it is expected to record 62% in occupancy with an increase of 44% in occupancy variance in 2021. Meanwhile, hotel occupancy in Alexandria is expected to reach 43% in 2020, with a 46% y-o-y occupancy variance decrease. Nevertheless, occupancy rates are anticipated to increase in 2021 to record 62%, and 44% increase in y-o-y occupancy variance. The UAE's Dubai Palm Jumeirah hotel market is expected to register a 41% occupancy rate with a drop of 48% in y-o-y occupancy variance. The report forecasts a significant increase in Dubai Palm Jumeirah hotel occupancy, to reach 67% and an increase of 65% in y-o-y occupancy variance. Hotel occupancy in Mecca is projected to record 33% in occupancy in 2020, with an increase in 2021 to record 56%, with an increase of 69% in y-o-y occupancy variance.
