With the completion of Expo 2020 Dubai last month, outlook for hotels in the MENA region remains positive for the remainder of 2022, supported by the UAE’s effective management of Covid-19 and by easing travel restrictions globally.
The hospitality sector saw a significant spike over the past six months as tourists and entrepreneurs alike flocked to the city to see the world fair, and the effect is expected to last for months to come.
“Since 2021, the hospitality sector in this region has been recovering quickly and today more than ever is thriving. The government has played a pivotal role in ensuring the country has been globally established as a safe, covid-protected and well-managed travel destination,” said Guy Hutchinson, President and CEO of Rotana, in an interview with Arabian Business.
“The launch of Expo also came at the perfect time, when demand for a return to international travel peaked. The global exhibition further contributed to a greater level of awareness for the city of Dubai, combined with multiple other attractive factors for tourists and investors such as the golden visa scheme,” he added.
Dubai hotels are forecast to be the busiest in the region this year, with occupancy rates as high as 74 percent in some areas, according to data by Colliers.
“The quarter has been extremely positive, with an increasing number of key international feeder markets re-opening their borders and easing restrictions. We continue on the road to recovery with extremely positive performance in all hotels, and a very optimistic outlook for the future of the industry in the UAE and the wider region,” said Hutchinson.
On the key trends disrupting the regional tourism industry in 2022, he said: “The pandemic has significantly changed consumer habits. One crucial factor of consideration today is environmental awareness.”
Last year, the Ras Al Khaimah Tourism Development Authority (RAKTDA) announced a new strategy that aims to see the nature-based emirate become the regional leader in environmentally conscious tourism by 2025.
“Focus on sustainability has been further amplified throughout the pandemic, and brands are expected to be doing their part in reducing the impact of climate change, making sustainable travel a huge focus going forward… At Rotana, sustainability lies at the heart of our operations,” he added.
Hutchinson also highlighted the need for flexibility as a key factor for consumers when arranging travel plans, in which he said: “Guests are looking for hotels to be flexible with check-in and check-out times, update cancellation policies, free cancellations against local, international restrictions; as well as flexible upgrades that allow guests to have a better room to be able to work from and to have more space. As business travel starts to pick up, companies that adjust to cater for this level of flexibility will lead the recovery.”
On his outlook for the sector in 2022, he said: “The hospitality sector is buoyant in the region and leading global recovery for the sector. The GCC is opening up, with Saudi Arabia and the UAE removing all entry requirements for inbound travelers, bolstering international and domestic travel demand.”
“The FIFA World Cup taking place at the end of this year will also certainly boost demand to Doha, as well as key transit hubs such as Dubai and Abu Dhabi. Furthermore, the Saudi Arabian market has shown tremendous positive indicators for both Riyadh and Jeddah, in addition to the re-opening of Mecca. Outside of the Middle East, we are continuing to expand in Africa and Turkey,” he added.
Rotana is currently working to develop 44 new properties in 26 cities in the Middle East, Africa, Eastern Europe and Turkey, Hutchinson shared. Once complete, the new properties will add 10,868 rooms to Rotana’s inventory, taking its total number of rooms to 29,433.
“Our strong localised focus, agility and deep understanding of the regional markets constantly enable us to quickly pivot our strategies as demand fluctuates. This approach has served us well in navigating the pandemic, as well as now rapidly accelerating the trading of our hotels to market-leading performances,” he said.
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