Aranca mena tourism newsletter september 2013

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Transcript of Aranca mena tourism newsletter september 2013

  • 1.MENA Tourism and Hospitality Report September 2013 aranca.com

2. Table of Contents Contents 01. MENA Tourism Synopsis..............................................................................................1 02. Hospitality Market Update........................................................................................2 03. Saudi Arabia Tourism Industry...................................................................................4 04. Tourism Theme: MICE Tourism...................................................................................6 05. MENA Hotel Pipeline and Expansions......................................................................7 06. Trends in Hospitality and Tourism GCC....................................................................9 3. MENA Tourism and Hospitality Report September 2013 1 Connect with us: 01 MENA Tourism Synopsis Tourism in MENA is showing signs of recovery despite the Arab Spring and the ongoing economic instability in Europe MENA TOURISM & HOSPITALITY In the recent past, the MENA tourism industry suffered due to the political crisis in the region. Although growth has been uneven across countries in the region due to the Arab Spring, some MENA countries are showing signs of recovery. According to the United Nations World Tourism Organisation (UNWTO), international tourist arrivals in the Middle East grew 13% y-o-y during the first half of 2013. The growth is expected to continue in 2013 at 34%, slightly below 2012 levels. During the first half of 2013, more than 5.5 million tourists arrived in Dubai, an 11.1% y-o-y increase. The increase in tourist number can be ascribed to the various events (shopping festivals) and the growth in MICE tourism Egypt has been one of the highly affected countries in the region. The number of tourists traveling to Egypt has dropped significantly in 2013: just 1 million tourists visited the country until the end of August, an 80% y-o-y decline. However, Egypt's Ministry of Tourism is promoting the sector domestically and internationally. The ministry has collaborated with Ministry of Civil Aviation affiliates, such as Egypt Air, Egypt Express, and Smart Air, to offer special discounts to stimulate domestic tourism. In mid-2014, a unified visa for the six GCC countries is likely to be implemented. With the visa, Arab and foreign tourists could visit the GCC countries. The single-entry visa would be valid for a month, but multiple-entry visas could be issued for a year. The GCC visa is expected to boost tourism, business, shopping, and economic activities in the member countries. An increasing number of international tourists plan to visit the GGC region. Therefore, it is the right time for GCC countries to take advantage of the substantial national investments in infrastructure and human capital to begin the transformation of the tourism sector. 4. MENA Tourism and Hospitality Report September 2013 2 Connect with us: 02 Hospitality Market Update1 The hotel industry in MENA exhibited mixed performance in July 2013, with occupancy rate declining 7.6 percentage points (pps) y-o-y to 49.0%. ADR increased 5.6% y-o-y to $147.82, while RevPAR decreased 8.6% y-o-y to $72.37 Occupancy Rate In July 2013, Doha, Qatar, reported the largest increase in the hotel occupancy rate. The occupancy rate in Doha increased 4.2 pps y-o-y to 48.2%. The rise in occupancy rate can be ascribed to Qatar Tourism Authoritys (QTA) efforts to focus Qatar as a tourism destination, prior to FIFA WC in 2023 and relaxation of foreign entry rules.. Cairo, Egypt, recorded the largest decrease in occupancy in July 2013. The rate fell 34.9 pps y- o-y to 16.6% due to the recent overthrow of President Morsi and violent clashes between his supporters and the opposition. ADR Jeddah, Saudi Arabia, reported the largest increase in ADR in the region, up 13.0% y-o-y to $258.81 in July 2013. This increase can be ascribed to the continued growth in room demand as the city is considered as a summer tourism destination for domestic tourists. In July 2013, Beirut, Lebanon, recorded the largest decline in ADR in the region, down 20.2% y- o-y to $157.0, as political instability in neighboring Syria continues to affect Lebanons tourism industry. RevPAR In July 2013, Jeddah, Saudi Arabia, reported the largest increase in RevPAR, up 6.3% y-o-y to $203.7. This increase in RevPAR is ascribed to robust growth in room demand that led to higher occupancy rates and ADR. Doha, Qatar, reported the second-largest increase in RevPAR, up 2.5% y-o-y to $83.96, on higher occupancy rates. Cairo, Egypt reported the largest decrease in RevPAR in the region, down 62.0% y-o-y to $16.68. Continuing political unrest in the country have lowered tourist visits thus affecting both occupancy and ADR, resulting in lower RevPAR. 1 STR Global Data, Middle East/Africa Hotel Sector Performance for July 2013 5. MENA Tourism and Hospitality Report September 2013 3 Connect with us: Table 1: Statistics in Key MENA countries2 Occupancy ADR Occupancy ADR Country Jul 2013 Jul 2012 Jul 2013 Jul 2012 MayJul 2013 MayJul 2012 MayJul 2013 MayJul 2012 Egypt 35.8% 52.8% EGP366.2 EGP383.5 48.4% 50.2% EGP435.3 EGP382.2 Saudi Arabia 54.1% 64.9% SAR1,104.8 SAR817.8 60.7% 66.9% SAR822.4 SAR687.7 UAE 49.9% 59.6% AED536.5 AED552.0 65.9% 65.6% AED605.9 AED583.9 2 STR Global Data, Middle East/Africa Hotel Sector Performance for July 2013, Aranca Analysis Denotes increase in parameter Denotes decrease in parameter 6. MENA Tourism and Hospitality Report September 2013 4 Connect with us: 03 Saudi Arabia Tourism Industry3 Religious tourism and business tourism are the key growth drivers for the tourism industry in Saudi Arabia In terms of absolute contribution to GDP, Saudi Arabias travel & tourism sector ranked 33rd worldwide in 2012. Around 17.4 million international tourists are expected to visit the country in 2013 due to an anticipated growth in religious tourism and shopping events. This influx of tourists is expected to generate SAR36.8 billion in revenues during the year. The number of tourists visiting Saudi Arabia is estimated to increase at a CAGR of 2.0% to 21.3 million over 201323, with revenues totaling SAR60.9 billion in 2023. The expected rise in the number of international tourists may be ascribed to an increase in the number of people visiting religious destinations (Mecca and Medina together attracts more than 7 million of visitiors annually) and the growth in international shopping centers. Moreover, the Supreme Commission for Tourism and Antiquities SCTA, Saudi Arabias tourism body, has been implementing numerous promotional programs for attracting local and inbound tourists to experience shopping in Saudi Arabia. The travel & tourism sectors direct contribution to GDP is estimated to increase to SAR56.4 billion in 2013 (2.4% of GDP) from SAR52.1 billion in 2012 (2.3% of GDP). Thereafter, it is projected to increase at a CAGR of 4.0% to SAR83.7 billion in 2023. In 2012, Saudi Arabia recorded leisure travel spending of SAR47.5 billion, while business travel spending reached SAR34.5 billion during the same year.Leisure travel spending is expected to grow 7.9% y-o-y in 2013 to SAR51.2 billion and, thereafter, rise at a CAGR of 4.4% to SAR78.9 billion in 2023. Business travel spending is anticipated to rise 8.8% y-o-y in 2013 to SAR37.5 billion and, thereafter, increase at a CAGR of 3.5% to SAR52.8 billion in 2023. Investments in the travel & tourism sector are estimated to grow 1.7% y-o-y to SAR21 billion in 2013. Investments are expected to increase at a CAGR of 4.0% to SAR30.9 billion over 201323 A key driver of tourism in Saudi Arabia is religious tourism. Each year, millions of pilgrims come to Saudi Arabia to visit Mecca and Medina. Business travel is another driver for the 3 WTTC, IMF, and Zawya News Report 7. MENA Tourism and Hospitality Report September 2013 5 Connect with us: countrys tourism industry. Key cities that promote business tourism include Riyadh, Jeddah, Dammam, Al Khobar, and Dhahran. Saudi Arabias government continues to undertake numerous initiatives to boost tourism. The country is set to develop a domestic tourist destination worth over $650 million amid rising tourism in the kingdom. The Kingdom has also proposed the launch of a tourism investment and development company, which would execute large tourism projects and lure private developers and investors. 8. MENA Tourism and Hospitality Report September 2013 6 Connect with us: 04 Tourism Theme: MICE Tourism4 Meetings, incentives, conferences, and exhibitions (MICE) are a key driver for the MENA tourism sector. The MICE industry in the region is set to expand, as the region continues to attract high-profile global events and acquires state-of-the-art infrastructure. In recent years, the Middle East, particularly the UAE, has received huge investments in the meetings and events industry. Dubai continues to be the key MICE destination in the UAE, followed by Abu Dhabi. Demand for MICE space in Dubai hotels has increased significantly. Hotels in the region are witnessing a rise in demand for MICE services from companies for their meetings, trainings, and seminars. These hotels focus on offering meeting rooms and banquet halls equipped with a variety of multi-purpose facilities, such as projectors, screens, sound systems, and Wi- Fi services. Abu Dhabi is another key MICE destination in the Middle East. In March 2013, Abu Dhabi Tourism & Culture Authority (TCA) launched the Abu Dhabi Conventions Bureau (ADCB) to boost the emirate's ranking in the world's top destinations for MICE by providing free and non-biased assistance and support to professional convention, incentive, and exhibition planners. In 2012, the total number of events hosted at Abu Dhabi National Exhibition Centre (ADNEC) grew to 360 from 232 the previous year, a 55% increase. Additionally, 17 conferences were held that a