Qatar's hospitality sector witnessed a robust increase month-on-month in occupancy in November this year, nevertheless its hotel rooms' yield (in dollar terms) was on the decline, according to Ernst & Young (EY).
Hotels' rooms yield fell 6.9% to $157 in November 2016 on a 11.2% decrease in average room rate to $212 despite a 4% expansion in occupancy to 73%, EY said in its Middle East Hotel Benchmark Survey.
"Hotel performance has been weak across the region due to slower economic growth; performance is expected to improve in December, in certain markets, as the holiday season attracts more tourists. It is anticipated that the hospitality market across the Gulf Cooperation Council (GCC) will continue to face downward pressure on occupancy and ADR (average daily rate) during most of 2017,” EY said.
A new tourism strategy adopted by the Qatar Tourism Authority is aiming at attracting a bigger volume of tourists by growing the leisure segment and trying to capture more non-GCC arrivals, it had said.
Finding that Qatar is developing several tourism products throughout the country, such as eco-lodges and desert hotels, to diversify its offering and spread tourism density away from Doha, it had said “this diversification strategy should allow transferring travellers from airport transits to longer stays.”
On year-to-date (YTD), Doha hotels' rooms yield had reported a 17.3% plunge to $136 as average room rate shrank 14.6% to $214 and there was also a 2% fall in occupancy to 63%, EY said.
Elsewhere in the GCC, EY found that in Saudi Arabia, Riyadh hotel rooms' yield plummeted 19.2% YTD to $110 in November this year on the back of a 9.3% fall in average room rate to $192 and 7% in occupancy to 57%.
Madinah saw its hotel rooms’ yield plunge 13.6% YTD to $141 as 5.2% increase in average room rate to $234 led to a 13% decline in occupancy to 60%.
Makkah witnessed a 6.5% shrinkage in hotel rooms' yield to $136 as average room rate jumped 6.5% to $290, consequently leading to a 6% fall in occupancy to 47%.
Jeddah hotels reported a 5.7% slump in rooms' yield to $207 as occupancy was lower by 5% to 72% despite a marginal a 0.7% rise in average room rate to $284.
In the UAE, hotels in Dubai (overall) witnessed a 7.5% shrinkage YTD in rooms' yield to $198 on a 7.2% fall in average room rate to $246, even as occupancy was flat at 80%.
Abu Dhabi's hotels rooms' yield plummeted 16.6% YTD to $97 on a 15.6% decline in average room rate to $125 and 1% in occupancy to 77%.
However, hotels in Ras Al Khaimah (overall) saw a 10.9% surge YTD in rooms' yield to $116 owing to an 8.3% increase in occupancy to 72.6% due to 2.3% decline in average room rate to $158.7.
Manama (Bahrain) witnessed a 5.6% shrinkage YTD in hotel rooms' yield to $100 despite 1% increase in occupancy to 50% on a 6.4% decline in average room rate to $199.
Kuwait saw its hotel rooms' yield plummet 15.4% YTD to $105 on the back of a 9% decline in occupancy to 39% due to a 3.8% jump in average room rate to $265.
Muscat's hotels registered a 13% fall in hotel rooms' yield to $121 on a 13.1% decline in average room rate to $185 although occupancy was flat at 65%.
"Hotel performance has been weak across the region due to slower economic growth; performance is expected to improve in December, in certain markets, as the holiday season attracts more tourists. It is anticipated that the hospitality market across the Gulf Cooperation Council (GCC) will continue to face downward pressure on occupancy and ADR (average daily rate) during most of 2017,” EY said.
A new tourism strategy adopted by the Qatar Tourism Authority is aiming at attracting a bigger volume of tourists by growing the leisure segment and trying to capture more non-GCC arrivals, it had said.
Finding that Qatar is developing several tourism products throughout the country, such as eco-lodges and desert hotels, to diversify its offering and spread tourism density away from Doha, it had said “this diversification strategy should allow transferring travellers from airport transits to longer stays.”
On year-to-date (YTD), Doha hotels' rooms yield had reported a 17.3% plunge to $136 as average room rate shrank 14.6% to $214 and there was also a 2% fall in occupancy to 63%, EY said.
Elsewhere in the GCC, EY found that in Saudi Arabia, Riyadh hotel rooms' yield plummeted 19.2% YTD to $110 in November this year on the back of a 9.3% fall in average room rate to $192 and 7% in occupancy to 57%.
Madinah saw its hotel rooms’ yield plunge 13.6% YTD to $141 as 5.2% increase in average room rate to $234 led to a 13% decline in occupancy to 60%.
Makkah witnessed a 6.5% shrinkage in hotel rooms' yield to $136 as average room rate jumped 6.5% to $290, consequently leading to a 6% fall in occupancy to 47%.
Jeddah hotels reported a 5.7% slump in rooms' yield to $207 as occupancy was lower by 5% to 72% despite a marginal a 0.7% rise in average room rate to $284.
In the UAE, hotels in Dubai (overall) witnessed a 7.5% shrinkage YTD in rooms' yield to $198 on a 7.2% fall in average room rate to $246, even as occupancy was flat at 80%.
Abu Dhabi's hotels rooms' yield plummeted 16.6% YTD to $97 on a 15.6% decline in average room rate to $125 and 1% in occupancy to 77%.
However, hotels in Ras Al Khaimah (overall) saw a 10.9% surge YTD in rooms' yield to $116 owing to an 8.3% increase in occupancy to 72.6% due to 2.3% decline in average room rate to $158.7.
Manama (Bahrain) witnessed a 5.6% shrinkage YTD in hotel rooms' yield to $100 despite 1% increase in occupancy to 50% on a 6.4% decline in average room rate to $199.
Kuwait saw its hotel rooms' yield plummet 15.4% YTD to $105 on the back of a 9% decline in occupancy to 39% due to a 3.8% jump in average room rate to $265.
Muscat's hotels registered a 13% fall in hotel rooms' yield to $121 on a 13.1% decline in average room rate to $185 although occupancy was flat at 65%.
