$140 billion hotel projects coming up in Gulf.
The study -- Status of Developments in the Middle East Leisure Industry -- was presented by Emil Rademeyer,director of Proleads, at The Seven Star Conference, held as part of The Hotel Show, the region's leading hospitality services trade show. 'As the tourism and leisure sector feels the pinch of the global economic downturn, the study raises the question -- will supply exceed demand as new hotel properties come on stream?,' said Rademeyer.
The report finds that hotel occupancy levels have remained relatively stable throughout the GCC since 2003 but it illustrates that the economic slowdown has impacted negatively on the region.
However while acknowledging that 2009 will be a challenging year,it reveals that occupancy levels will pick up to 2008 levels by the end of 2010 and then accelerate with real growth by 2013.
'Given projected increases in demand from 2013 onwards,more hotels will be required if relatively high occupancy levels are to be maintained. Currently there are 306 hotel projects under construction budgeted at $140 billion.' 'With an average completion period of two to three years 108,600 rooms should come online by 2011,' said Rademeyer.
"However to satisfy the growing demand, the region will have to start constructing more hotels in 2010 to ensure they are ready in time to meet the growing demand.
Therefore all things being equal, the study indicates that construction of hospitality projects will continue unabated," he pointed out. Welcoming the study,Maggie Moore, exhibition director of The Hotel Show, said: "While the regional hotel industry has undoubtedly been affected by the current global downturn,the good news is that the Middle East continues to invest heavily in the steady expansion of its hospitality industry.'
Saudi Economic Survey. All rights reserved.
Provided by Syndigate.info an Albawaba.com company
|Printer friendly Cite/link Email Feedback|
|Publication:||Saudi Economic Survey|
|Date:||Jun 2, 2009|
|Previous Article:||Kanoo unveils new fast crew boat series.|
|Next Article:||UK economy shrinks 2% in Q1.|