GCC & The UAE
As the Holy Month of Ramadan recedes in the Gregorian calendar, most GCC countries will experience a strong year-on-year drop in RevPAR.
The entire month of June is expected to experience very low levels of corporate demand, and hoteliers in Dubai and Abu Dhabi will use heavy room discounts with the intention of capturing leisure demand from European, United States, Indian and Chinese source markets.
JEDDAH
The Jeddah market continues to feel the impact of low oil prices and the impact is more severe than anticipated. Corporate and MICE demand is adversely impacted by budget cuts across the private and public sector units mainly due to dip in oil prices and re-alignment of government funding plans. Jeddah city’s RevPAR is forecasted to close below last year by 20% for the period of April-June 2017 and 18% below last year for full-year 2017.
DUBAI
The Dubai market is recovering from a lackluster performance in 2016; it has witnessed a strong growth in occupancy, however the ADR was in line with last year. The growth in occupancy has halted the decline in RevPAR in Q1 2017. The positive trend is expected to continue with a slight decline during summer and Ramadan. Based on a strong Q1 performance and upward trend, the RevPAR for full year 2017 is forecasted to close 2% above 2016.
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