News dalla rete ITA

5 Maggio 2019

Arabia Saudita - Kuwait - Bahrein - Emirati Arabi Uniti - Oman

WHAT PROTENDERS DATA SAYS ABOUT THE GCC'S HOTEL PIPELINE IN 2019

While hoteliers faced business challenges in 2018 work is steadily progressing on hotel construction projects across the GCC in 2019, with the regional tally of hospitality schemes valued at $269.2bn as the UAE and Saudi Arabia drive project expansion in light of upcoming World Expo; the changing dynamics of Makkah's hospitality market; the changing demands of the 'Instagram travellers'. Despite market concerns about a decline in revenue per available room following the completion of Expo 2020 Dubai, the UAE continues to lead the GCC in terms of hotel construction, accounting for 45% of the region’s total under-construction hospitality projects. According to ProTenders, the UAE had 652 hospitality projects worth $107.8bn under way as of April 2019. This figure included schemes in the planning, design, tender and construction phases. Of the total amount, projects worth $27.2bn are at the planning, design and tender stage, while $41.6bn are under construction. According to Lodging Econometrics 2018 Global Construction Project Trend Report, released this year, Dubai alone had a hotel construction pipeline of 168 projects (49,950 keys) in 2018. The city ranked second behind New York City in the Lodging Econometrics’s list of global cities with the largest hotel pipelines. Market-watchers have questioned the economic sustainability of the UAE’s hotel projects once Expo 2020 Dubai has concluded but co-founder and chief executive officer of Pro Tenders, Karim Helal, is pragmatic about the future, “Hospitality projects across the luxury, mid-scale and economy sectors will continue to grow post-Expo 2020, capitalising on the demand that will arise from the country’s new world-class guest experience set during the expo. “In addition, the pipeline of attractions and cultural activities, retail outlets, food and beverage options and the simplified visa processes for key tourist markets will contribute to increased footfall to the UAE well beyond 2020 and drive room demand.” The UAE’s popularity as a tourism destination also contributes to the value of its hospitality offering. Between January and September 2018, Dubai’s average daily rate (ADR) and occupancy figures were respectively pegged at $165 and 74%. In the same period Abu Dhabi’s ADR was recorded at $103 with 70% occupancy. STR’s data on Saudi Arabia – the GCC’s second-busiest hospitality market according to ProTenders’ April 2019 research – further exemplifies the strength of Dubai’s hospitality market. During the first 9 months of 2018, Riyadh’s ADR of $171 was marginally higher than corresponding figures for Dubai. However, the Saudi Arabian capital's occupancy rate was of only 53% in the same period – far lower than Dubai’s 74%. On the other hand, Jeddah fared better between January and September 2018, when its ADR was valued at $299 but its occupancy rate of 63% still came behind Abu Dhabi’s and Dubai’s figures for the period. Optimism has not waned in the kingdom, where hotel projects worth $25.8bn are under construction. Another $8.3bn-worth of hotel projects are at the planning stage, whilst developments valued at $13.3bn are in design; and, while Saudi's long-term economic diversification mandate remains the bedrock of its hotel sector's expansion plans, the country's hotel owners and operators are likely to benefit from the projects that Saudi Arabia is backing to attract more travellers, including young tourists classified as 'Instagram travellers' for their social media-savviness. The Omani, Kuwait and Bahraini hospitality sectors seem subdued compared to those of the UAE's and Saudi's but each country plans to boost tourism. The Oman Tourism Strategy (2016–2040) was developed to diversify the local economy. The programme aims to attract more than 11 million tourists in a year by 2040. The plan also envisages increasing the tourism sector’s contribution to Oman's GDP to 6% by 2040. Meanwhile, as of December 2017, the government of Bahrain's investments in active tourism projects was valued at $13bn (BHD4.9bn), with this kitty including developments such as Bahrein International Airport's $1.1bn (BHD414.8m) modernisation programme, which will increase passenger capacity from 9 to 14 million per year by 2020.The prospects are also positive for Kuwait, Helal explains, pointing to the country's New Kuwait 2035 Vision programme, a 7-pillar programme that aims to secure the Arab country’s future through economic sustainability. (ICE DUBAI)


Fonte notizia: ConstructionWeek Online