Major Egyptian markets are forecast to see an average revenue per available room (RevPAR) growth of 20% in 2019 in comparison to 2018, Colliers Hotels mentioned in its Middle East and North Africa (MENA) Hotel Forecast report.
Egyptian markets such as Cairo, Hurghada, Sharm El Sheikh, and Alexandria continue to experience strong growth in performance levels, the report assured, noting that these markets saw an average RevPAR growth of 12%, year-to-date (YTD) November 2019, compared to the same period in 2018.
Travel sentiment from most source markets is now relatively relaxed, resulting in a surge in demand while Egyptian markets are predicted to stay strong, the report asserted, noting that occupancy for Cairo will reach 80% in 2019, 82% in Alexandria, 60% in Sharm El Sheikh, and 67% in Hurghada.
The report continued that occupancy levels in Egyptian markets will increase in 2020, explaining that occupancy in Cairo will reach 81% this year, Alexandria 84%, Sharm El Sheik 64%, while occupancy in Hurghada will reach 70%.
Additionally, Beirut hotel market has witnessed a strong performance with double digit growth in RevPAR. The Hotel forecast speculated that the increase in performance levels may be attributed to the growing number of European tourists.
French tourists top the list followed by Germans and the British, while the lifting of the travel warning from Saudi Arabia is also expected to have a positive impact, the report said, noting that the market has seen a slow-down in the last few months, but is forecast to see a RevPAR growth of 8% in full year 2019, due to strong performances in the first three quarters.
Manama hotel market has seen a positive performance trend, achieving a RevPAR growth of 8%. This performance can be attributed to the increase in the number of visitors. Continuous investments in tourism infrastructure is expected to increase the country’s visibility on the global map. The market is forecast to see a RevPAR growth of 7% in full year 2019.
The UAE markets are expected to achieve relatively stable performance levels in 2020, with the first three months of EXPO 2020 falling in the fourth quarter, the report mentioned, saying that Saudi markets will continue to benefit from tourist visa changes and other initiatives.
Although new supply might put downward pressure on rates in the Saudi market, recent initiatives are expected to have a positive impact on occupancy levels.