New hotels pipeline remains strong as GCC countries defy pandemic impact

The construction of new hotels in prime tourism destinations such as Saudi Arabia, Qatar, Oman and the UAE remains substantial despite the pandemic headwinds over the past two years.

According to new research commissioned by Arabian Travel Market, Makkah and Doha are both expanding their hotel room inventory by 76 percent, followed by Riyadh, Madinah and Muscat with 66 percent, 60 percent and 59 percent growth respectively.

The data compiled by hospitality analysts STR also showed that in Dubai, rooms growth stands at 26 percent which is still more than double the global average.

Danielle Curtis, exhibition director ME – Arabian Travel Market (ATM), said: “With the global average sitting at 12 percent we are witnessing multiple GCC destinations growing at six times those rates.

“These figures coupled with the ongoing relaxation in travel restrictions, will undoubtedly encourage travel professionals throughout the Middle East and further afield,” she added.

According to the report, there are almost 2.5 million hotel rooms currently under contract around the world, 3.2 percent or 80,000 rooms of that supply is taking place in Saudi Arabia alone.

Although Expo 2020 Dubai is now drawing to a close, the mega event has been the catalyst for accelerated hotel room growth in the UAE with almost 50,000 rooms still due to open, it added.

The pipeline of new hotels in the Gulf shows no sign of slowing despite the pandemic. Following closely behind is Doha with final preparations for the FIFA World Cup 2022 now being put in place.

Doha is on track to deliver 23,000 hotel rooms pre- and post-World Cup 2022, adding to the country’s burgeoning hotel property portfolio.

“Whilst the actual numbers may not seem particularly significant in comparison to the global hotel room pipeline, the growth above existing supply is staggering and underlines government strategy to diversify their economies away from hydrocarbon receipts and their confidence in the growth of tourism throughout the region,” said Curtis.

In line with the UAE government’s transition to a Monday-to-Friday workweek, this year’s edition of ATM will commence on Monday May 9 and run until May 12.

source:https://www.arabianbusiness.com/industries/construction/new-hotels-pipeline-remains-strong-as-gcc-countries-defy-pandemic-impact