According to preliminary data from STR, most
major hotel markets in the GCC (Gulf Cooperation Council) reported
performance declines when comparing Ramadan 2017 with Ramadan
STR compared the 2017 dates of 26 May through 25 June with
the 2016 time period of 6 June through 6 July.
Muscat, Oman, was the only market analyzed
that reported an increase in RevPAR (+8.7%). The marketís 19.4%
increase in occupancy outweighed a 9.0% drop in ADR.
Dubai, United Arab Emirates, was the only other
market that did not report a significant decline in RevPAR,
although performance was nearly flat as a decline in ADR (-1.5%)
countered an uplift in occupancy (+1.2%).
According to STR analysts, growing hotel supply
and geopolitical issues are affecting the regionís performance.
School terms also factored into performance results, with Saudi
Arabiaís school term finishing earlier, while school in some
countries continued through the Ramadan period.
Makkah, Saudi Arabia, reported an 8.8% decline
in RevPAR, which was primarily the result of a 7.9% drop in
occupancy to 74.3%.
STR analysts note that key religious tourism
source markets, including Egypt and Indonesia, are currently
facing currency devaluations against the Saudi Arabian Riyal,
making it less affordable for potential visitors from those
nations to embark on pilgrimages.
Also of note, Qatar reported an occupancy
decrease of 7.2% and a drop in ADR of 8.3%.
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