September 2014

The GCC Hospitality Industry report focuses on the key performance indicators of the GCC region’s hospitality industry, such as number of hotel rooms, ADR (average daily rate), occupancy rates, RevPAR (revenue per available room), growth rates, and the industry outlook over the next five years. The report evaluates the current demand and supply situation, growth dynamics, future prospects as well as the challenges faced by the GCC hospitality industry.

The GCC economies are well on their way to recovery from the global economic crisis. With the recent wins in mega events like the Qatar FIFA World Cup 2022 and the Dubai World Expo 2020, the region is gearing up for an increase in tourist arrivals. Due to the forecasted increase in demand, the sector is going through capacity expansion as well as increasing investment into infrastructure. The industry is expected to sustain this growth momentum supported by the regional governments’ initiatives to grow the sector, international tourist arrivals, especially those from the Asian region, and growth in the MICE segment among other factors.

The GCC hospitality industry is expected to grow at an annual rate of 9.5% to US$ 35.9 billion by 2018 compared to the US$ 22.8 billion in 2013. Average occupancy rates are likely to be in the range of 68% and 74% between 2013 and 2018 while ADR is likely to average between US$ 225 and US$ 263 during the same period. Saudi Arabia is expected to continue its dominance as the largest market in terms of revenues, followed by the UAE. Upcoming mega events in Qatar and UAE are expected to be the key growth drivers for the hospitality industry in these countries.

For more details please click here to access the GCC Hospitality Industry online.