The outlook for hotels in the MENA region is still positive overall with most markets expected to improve on 2021’s performance, says a Colliers MENA study. However, increased geopolitical tension affecting key source markets and a rising price of oil are expected to shift demand patterns in the region, the Colliers Hotels – MENA Hotel Forecast – Road to Recovery said.
The lessons learned from earlier in the pandemic and the additional care taken with regards to Omicron have helped mitigate its expected long-term impact on recovery, it said. The priority for most markets in 2022 remains measures to minimise a resurgence of Covid-19, building consumer confidence in key source markets.
For select markets, the principal challenge will be the managing demand interruptions from key markets in the CIS regions, the forecast added. For all open markets the return of leisure demand remains an important factor. Changes in operational practices for international corporate travel are likely to place larger importance on both establishing a stable base of domestic and leisure demand.
Mega events such as the Expo 2020 Dubai and the FIFA World Cup Qatar 2022 are expected to result in a significant influx of demand for their host cities and result in a halo effect for surrounding markets. Consistent government support for the tourist and travel industries throughout the pandemic will continue to be a key factor in the ongoing recovery. Initiatives focused on the domestic demand supported the market during heightened travel restrictions but is also expected to provide tangible improvements to the focus of domestic travel in markets such as Ras al Khaimah and Riyadh, it said.
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