Based on 2017 performance, Kapoor says she’s hopeful about 2018: “As per latest reports from Collier and STR, Q1 2018 has seen an increase in RevPAR all over Sharjah, which is a positive sign. Occupancy has increased more, however, the rate has also shown an increase of 1%-2% when compared to Q1 2017. We are hoping for the remaining of the year to maintain the upswing.”
Kasch predicts a slight upswing in occupancy levels and believes the average daily rate will perform better than it did in 2017. But he admits that oversupply in Sharjah could pose a problem.
“Oversupply is a challenge we face in Sharjah. The increase in the number of hotels has had an impact on the rates. The lowering of rates in our neighbouring emirate Dubai has as well shown impact by eating in our share of the market,” Kasch explains.
Kapoor agrees that comparisons with neighbouring Dubai puts pressure on Sharjah to stand out as an independent emirate with unique offerings.
“Challenges are there in all markets, such as the usual increasing supplies. However, the biggest challenge that hoteliers in Sharjah face is the comparison with Dubai hotel rates, especially for groups. If Dubai hotels drop prices, Sharjah hotels are expected to drop; however, this notion of Sharjah being pegged on Dubai, has to change,” she contends.
“Sharjah is a different market and known for its culture and heritage. The tourism authority is doing a lot in terms of events at Amphitheatre and at Expo centre and we are seeing a slight shift in outlook now,” Kapoor concludes.
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