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June 2014: mixed results for Middle-Eastern hoteliers

In June 2014, some Middle Eastern destinations such as Egypt and Tunisia have remained on a negative trajectory, while others have maintained growth rates at high levels, as shown by the data collected by MKG Hospitality.

In June 2014, Moroccan hospitality results kept rising from last year: occupancy rose by more than 2 points, while average rates rose by 2,3%, enabling Moroccan hotels to post a RevPAR increase of 5.8%. The city of Casablanca has seen the average rates increase but in the same time the occupancy rate show a strong drop (-4.4 points). The city's RevPAR decreased of 1.6% in this month. However, hotel performances recorded in Marrakech are totally different. The better results can be explained with the following events: "Popular Arts Festival" in June and "Marrakech du Rire" (humorous festival)" held the 10th to 15th of June, allowing an occupancy rate up to 4.3 points and a rise of 3% in average prices and 11% for the RevPAR.

Tunisia with a lower occupancy in June (-5.2 points) due to higher prices (+6.6%) that involved a decrease of a RevPAR (-2.5%). The "Tunis Forum" held the 5 and 6 of June and the "We Are Tunisia Music Festival" didn't allow to record better performances compared to last year.

Like Tunisia, Algeria is in a negative trend with performances decreased in June. Unlike to the last month, the RevPAR decreased by 3.9% due to the decrease to the occupancy rate (-1.7 point) in spite of lower prices (-1.3%.

In Egypt, always in complicated situation, all cities post negative variations in their RevPAR. The results are down for the city of Cairo and Hurghada (-5.4 and -3.7%), and tourist areas like Sinai Peninsula or Sharm El Sheikh are in a deeper negative trend as they still suffer from a lack of international tourists. Alexandria showed, for this month, a stabilization of its hospitality activity (-0.1%). Indeed, with Hurghada, there were the only ones to lower their prices

The tourists chose to stay in Lebanon or Jordan at this time of the year. Indeed, the hotel occupancy in Jordan improved by nearly 2 points, allowing hoteliers to raise their rates by 3.8%. Amman, the capital city, also performed well: RevPAR rose by almost 3%. In Lebanon: occupancy increased by 13.2 points and the prices increase by 2.8%. It's important to note the restriction from Saudi Arabia to forbid tourism in Lebanon was stopped the 15thof May. The different events like Project Lebanon (The 19th International Construction Trade Exhibition for Lebanon & the Middle East) held the 3rd to 6th of June have been encouraged the performances too. In this area, RevPAR has a strong increase in June in Turkey (+24.2%) thanks to 8th Annual Wire and Cable Conference held the 9th to 11th of June, the IFCC Worldlab in Istanbul held the 22nd to 26th of June and others conferences.

Countries in the Arabian Peninsula generally posted positive performances in June. In Qatar, occupancy went up by 14.5 points. Doha welcomed various events, such as the Annual General Meeting of IATA held the 1st to 3rd of June and the 38th session of the World Heritage Committee for UNESCO held the 15th to 25th of June which generated many room nights for hoteliers in the city. In Bahrain, and more specifically in the capital with the Global Symposium for Regulators 2014 results are up. In Kuwait, hotel performances post a negative variation from last year (-6.3% for the RevPAR).

In Saudi Arabia, hotel performances are stable. This month Jeddah, with a good occupancy rate (83.5%) and rising average rates (+9.8%), improves its revenue per room by 6.4% compared to last year.

In the UAE, performances record a decrease. All hoteliers in the emirates except in Abu Dhabi posted a decrease in occupancy. The lower prices in some emirates didn't allow to rise the occupancy and the revenue per room.

This information is extracted from the full performance report by market in North Africa and the Middle East produced by MKG Hospitality each month. For more information, contact MKG Hospitality ( -Vanguélis Panayotis).

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