Canada-based global commercial real estate services organization Colliers International stated that its hotels in the UAE and Saudi Arabia will lead the recovery in the Middle East hospitality sector by the fourth quarter of 2020.
The Expo 2020 which begins in October 2021, will boost the UAE as a whole. The expo will continue till March 2022. The event was originally expected to attract more than 25 million visitors from all over the globe.
Saudi Arabia will continue to benefit from ongoing tourism programs, future mega-projects and domestic tourism programs at the same time. The emirate plans to invest $810 billion (Dh2.97 trillion) in the next decade to improve the tourism industry.
The consultancy said, “There is a lot of uncertainty in the market regarding the expected performance of hotels”.
The recovery of the MENA region will begin in the fourth quarter of this year and continue till 2021, as per the results of the company’s Hotel Mark Survey.
For 2020, hotels in the UAE will have an average occupancy rate of 44 percent. The Ras Al Khaimah City Market will have the highest occupancy rates (57 percent) and the Palm Jumeirah will be the lowest in the rates (39 percent).
However, by 2021, the demand for hotel accommodation in the country is expected to recover significantly. On average, hotels will grow around 62 percent in occupancy rate. The highest rates will be seen among hotels in the Dubai Marina/JBR market (69 percent), and the lowest in Fujairah (49 percent).
Colliers International headquartered in Toronto is a global commercial real estate services organization that offers services to consumers of commercial real estate, owners, investors and developers, including consultancy services, corporate facilities, investment services, representation of landlords and tenants, project management, urban planning, management of land and properties, valuation and advisory services.