Middle East domestic travel boom sees resilience to exogenous shock, says CBRE Partner

A well-established hospitality specialist, Ali Manzoor currently leads the Hotels & Tourism team at CBRE MENA. He has been in the industry for over 15 years and the region for over a decade, where he has gained extensive experience in hotel advisory and hotel operations.

Manzoor has worked with developers, investors and governmental institutions on feasibility studies, hotel valuations, pricing strategies, asset reviews and optimum site use for both large-scale multi-use projects and stand-alone assets during his time in the Middle East. At the same time, he has also helped clients negotiate Hotel Management Agreements (HMA) in a number of jurisdictions within the MEA region.

He sits down as one of the esteemed judges in the TDM Travel Excellence Awards Middle East 2024 to discuss what has changed about travel patterns and preferences in the region since the pandemic, what it is like being a part of HMAs for clients, as well as the major trends and opportunities to watch out for in the industry in the coming years.

Having been in the tourism and hospitality industry for over 15 years, what do you think has changed in terms of travel patterns and preferences since the ease of restrictions from the global pandemic?

The most significant impact that the pandemic has had on demand segmentation in the region is regarding domestic tourism. The rapid growth seen in the segment was initially due the lack of alternatives, given strict travel restrictions, but continued to flourish even as travel normalised. The result has been a more diversified market that is resilient to exogenous shocks. To this point, the WTM Global Travel Report recently set out that the Middle East outperformed all other regions for domestic travel in 2023, and that the segment had grown 176% since 2019.

Can you share with us what your experience has been like helping clients negotiate Hotel Management Agreements (HMA) in a number of jurisdictions within the Middle East? What are the main lessons or takeaways that you think are still applicable in today’s context?

HMAs have been getting increasingly complex over time, and contracts are not as straightforward as they used to be. It is critical to select a credible legal and commercial advisor to assist with negotiations, as failing to do so may cost firms dearly. This is particularly true when considering branded residence agreements—which are increasingly prevalent in the region—for which the stakes could potentially be much higher.

What major trends and opportunities do you see for the Middle East hospitality and tourism industries in the coming years? How can businesses be ready for these movements?

The most significant change in the coming years will be the evolution of KSA’s hospitality market and its ability to attract inbound tourism. We are starting to see some of these megaprojects come to life, and it will be exciting to see these destinations evolve.

As a judge at the TDM Travel Excellence Awards 2024, what specific qualities are you going to look for in the entries in terms of innovation in the travel and hospitality domain?

From my perspective, innovation should always be tied to the bottom line, so it would be great to see some entries that have had a material impact on profitability, or revenue lines that were previously untapped.