April 2014: mixed results for Middle-Eastern hoteliers

In April 2014, some Middle Eastern destinations such as Egypt and Lebanon 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 April 2014, Moroccan hospitality gains momentum with results sharply up compared to last year. Occupancy increased by more than 7 points, while average rates rose by 10.7%, enabling Moroccan hotels to post a RevPAR increase of 22.8%. The city of Marrakech has once again played the role of a growth engine. Indeed, occupancy has grown strongly, notably as the Marrakech Airshow, hosted from 23 to 26 April 2014, drove over 14,400 visitors. Over the four days of the event, prices climbed by more than 20% compared to standards. Over the whole month, RevPAR in Marrakech hotels soared by 34.6%. Conversely, hotel performances recorded in Casablanca were down due to lower occupancy (-2.3 points) and the stabilization of average prices (-0.3%).

Like Morocco, Tunisia is on a positive trend. Occupancy rose slightly in April (+1.3 point), and higher prices (+5.2%) allowed hoteliers to post a RevPAR increase of 8.2%. The Tunisian capital has hosted several major events such as the Nanotech International Conference and Exhibition on Nanoscience and Nanotechnology, held from 24 to 26 April 2014 and which brought together many scientists from around the world.

In Algeria, performances declined in April, unlike in March. This month's RevPAR decline over 7% is mainly tied to a decline in occupancy (-4.7 points). The situation is the similar in Egyptian hotels. If the results are up for the city of Alexandria (RevPAR up 4.3%), other markets are all down and especially tourist cities like Hurghada or Sharm El Sheikh which still suffers from a lack of international tourists.

The tourists who used to stay in Egyptian resorts at this time of the year went to countries like Jordan, for instance to hotels located in the Gulf of Aqaba. Indeed, hotel occupancy in the country jumped by nearly 10 points, allowing hoteliers to advance their rates by nearly 10%. The capital Amman also performed well but to a lesser extent. In other countries of the Levant, occupancy was dow n sharply in April (-4.3 points in Turkey, -11.9 points in Lebanon).

Countries in the Arabian Peninsula generally posted positive performances in April. In Oman, occupancy went up by 9.9 points, reaching 85.3%. The city of Muscat welcomed various events, such as the GHEDEX or COMEX Exhibition, which generated many room nights for hoteliers in the city. In Bahrain and more specifically in the capital, the results are up thanks to the holding of the Health & Wellness Bahrain Expo All held from 15 to 17 April 2014. In Kuwait, hotel performances are stable compared to last year.

In Saudi Arabia, hotel performances rose despite lo wer rates. Indeed, RevPAR increased by 4% due to an increase in occupancy of 4.5 points. The holy city of Makkah in particular displayed strong occupancy, above 85%, thanks to a revenue increase by more than 7 points, whereas rates declined (-10.4%).

In the UAE, performances increased clearly. Dubai hoteliers have particularly benefited from strong business activity in April and record excellent performances. The Wood & Wood Product Show or International Property Show-Dubai, which took place in the beginning of the month, brought hoteliers an international clientele that led to price increases. Over the full month of April, average prices rose more than 10% in the city.

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 (welcome@mkg-group.com -Vanguélis Panayotis).