Hotel occupancy levels across the Middle East reached 54 percent in March as the industry continues its gradual recovery from the catastrophic impact of the coronavirus crisis.
Latest research from STR shows the performance was up 52.4 percent from the same month last year, but still 26 percent down on pre-Covid levels from March, 2019, with border closures and various international flight bans continuing to impact growth.
In terms of countries, Qatar posted the highest occupancy rate last month at 71.2 percent, down just 0.4 percent on 2019 figures. At 62 percent, the UAE ranked second in absolute occupancy, sitting 23.9 percent below the 2019 benchmark. And while Bahrain was third in occupancy (54.4 percent) the kingdom was second closest to recovery (down 13.8 percent).
The research report said the UAE benefited from “a strong presence of expats working in the country, which along with lighter restrictions, helped drive the occupancy up”.
Dubai and Abu Dhabi recorded 66 percent and 58.6 percent occupancy levels in January, respectively. The UAE capital passed the 60 percent mark in February then reached 64.6 percent in March, which was down just 21 percent from 2019. Dubai’s occupancy ascent hit 60.5 percent last month, down 26.7 percent from the 2019 benchmark.
“Again, compared with most other parts of the world, this is a story of success,” said the report.It also revealed that smaller GCC destinations, like Oman and Bahrain, showed lower occupancy rates, but at overall “sold levels” in comparison to figures from 2019. Muscat’s numbers were down at 32.1 percent on January 28, but peaked at 68.8 percent on March 3. While in Manama, occupancy was at 30.9 percent on January 29, before reaching the dizzy heights of 73.7 percent on March 26 as a result of the Formula One grand prix in the country.
“Throughout the recovery period, there has been a repeated trend in travel patterns around the world – and the Middle East is no exception. Leisure demand has pushed occupancy upward with fluctuation in performances between weekends and weekdays,” the report said.
Ajman posted a 66.2 percent occupancy in January, while Ras al Khaimah came in at 46.1 percent. The report said those performances “steadily climbed through February and March”. In Saudi Arabia, Al Khobar and Jeddah posted January occupancy of 65.7 percent and 55.6 percent, respectively, “although each slowed in February and recorded a drop of around 10 points in March,” it added.
On the downside, the holy cities of Makkah and Medina, which rely on heavy international traffic, are still limited due to worldwide restrictions and showed Q1 occupancy levels of just 18.9 percent and 31.5 percent, respectively.
The report said: “Looking ahead, some countries are much further ahead in vaccinating their population. This will help to further bolster domestic demand and bridge the gap somewhat until international travel returns.
“Until more international guests return to the region, events and the diplomatic resolution achieved between Qatar and fellow GCC members should provide continued positives for the Middle East’s hotel industry.”
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