GCC hotel sector to hit $35.9bn in 2018
According to a report by Alpen Capital, this growth will be driven by mega events, the development of infrastructure, including airports, and investment by governments in tourism, among other factors.
The GCC Hospitality Industry report also predicts that average occupancy rates are likely to be in the range of 68 percent and 74 percent between 2013 and 2018, while ADR is likely to average between $225 and $263 during the same period.
According to the report, Saudi Arabia is expected to continue its dominance as the largest market in terms of revenues, followed by the UAE.
Sanjay Bhatia, managing director at Alpen Capital, explained how the growth of the hospitality sector was being fuelled by education, healthcare and MICE activities, with support from the aviation sector.
“The sector will continue to grow driven by factors such as the shift in global activity from the West to the East, increase in leisure travel, growing demand for serviced apartments, shift towards budget travel and quicker construction pipeline." ■