2003 good year for regional hotels
Revenue per available room (revPAR) increased by 8.6% in 2003 compared to 2002, driven by both an increase in occupancy and average room rate.
Despite the challenges of 2003 hotels in the Middle East saw revenue per available room (revPAR) increase by 8.6% during the year compared to 2002, driven by both an increase in occupancy and average room rate.
According to Deloitte & Touche’s Hotel Benchmark Survey Kuwait was the best performing market that saw a staggering 81.9 percent growth in revPAR in 2003 (US$176) compared to 2002 (US$97) and occupancy levels increase by 62%.
Doha achieved a 13.4% increase in revPAR at US$70 in 2003 compared with US$62 in 2002, predominantly driven by an 11.5 percent increase in occupancy, 69.9 % in 2003 compared with 62% in 2002. Dubai city centre hotels saw revPAR increase 14% from US$68 in 2002 to US$77 in 2003, although there was some occupancy growth, this was largely rate driven.
Egypt’s Red Sea resorts showed signs of improvement with both increased foreign interest and government tourism diversification schemes starting to have an impact. Although occupancy is still at the 50% mark, at par with 2002 figures, the region has seen average room rate increase by 14% in 2003, compared to the previous year.
Some of the most disappointing performance across the region was witnessed by Alexandria and Cairo- Heliopolis in Egypt. Alexandria saw revPAR drop from US$31 in 2002 to US$24 in 2003, a decline of 22% and Cairo - Heliopolis saw revPAR fall 10.7%, from US$42 in 2002 to US$37 in 2003. Hoteliers in provincial Saudi Arabia also struggled with revPAR falling by 11.3% from US$33 in 2002 to US$29 in 2003.