Egypt to witness tourism boom in 2019
Egypt's tourism industry is expected to receive a boost in 2019, as analysts predict Hurghada and Sharm El Sheikh to become tourist hot spots this year with forecasted growths of 13 per cent and 12 per cent, respectively, in revenue per available room (RevPAR).
According to Colliers International’s Mena Hotel Forecast for 2019, the Red Sea resorts are expected to continue benefitting from positive security perceptions and returning of tourists from major source markets. The growth in both occupancy and average daily rate (ADR) from the corporate, leisure and Mice segment is expected to drive RevPAR.
The report also showed that Ras Al Khaimah, Jeddah, Manama and Kuwait city are among the GCC cities expected to maintain a confident and steady performance this year, with Jeddah's RevPAR edging up 3 per cent and Ras Al Khaimah climbing up 2 per cent in 2019. The RevPAR's of Manama and Kuwait city are forecast to inch up 1 per cent compared to 2018.
The entry of new supply into the Saudi market over the short to medium term is expected to put pressure on the occupancy and average daily rates.
The RevPAR of Fujairah, Madinah and Muscat are expected to stay flat in 2019.
The major hotel markets in Dubai are experiencing growing demand from price-sensitive source markets resulting in a drop in average daily rates, adversely impacting RevPAR. The market is forecasted to see similar performance trends in 2019 in comparison to last year. Abu Dhabi beach hotels are forecasted to see an average RevPAR growth of 1 per cent in 2019 in comparison to last year.
Analysts also noted that Jordan can expect to see a surge in international leisure demand with hotels in Aqaba forecast to see a 5 per cent growth in RevPAR in 2019, while hotels in Beirut may record a 2 per cent jump and revenues in Amman may stay flat for the year.
Overall, analysts forecast that Egypt and Jordan will experience an uptick in foreign arrivals, with RevPAR moving upwards, while the rest of the Middle East will see RevPAR either move downwards or stay flat in 2019. - TradeArabia News Service