(MENAFN - Khaleej Times) Dubai's hotel industry is one of the strongest performers in the Middle East and Africa with higher revenues and profitability despite slight decline in occupancy in October this year, latest reports have revealed.
Abu Dhabi's hospitality sector also picked up momentum and recorded the highest rise in occupancy levels in the GCC with a 15.8 per cent increase to 76.7 per cent in October, while its 10.7 per cent surge in average daily rates, or ADR, to 172.77 was the largest increase in that metric in the region, according to data compiled by STR Global.
The latest HotStats survey by TRI Hospitality Consulting Middle East also said hotels in the capital registered substantial growth in revenues and profits during October due to the Eid Al Adha holidays and a number of international events like the Abu Dhabi Film Festival and the Fifa under-17 World Cup, among others, hosted by the emirate.
The HotStats survey witnessed growth in top-line performance, which boosted profit levels by 47.3 per cent as gross operating profit per available room reached 117.43 in October. It noted 30.6 per cent growth in revenue per available room, or RevPAR, to 145.13 due to an 8.4 percentage point increase in occupancy levels and a 16.8 per cent rise in average room rates to 182.37 during the month.
The STR Global data also showed that only three markets in the Middle East achieved RevPAR of more than 10 per cent in October. Abu Dhabi hotels recorded the highest rise of 28.2 per cent to 132.46 while Beirut and Muscat recorded a 17.3 per cent (72.17) and 11.5 per cent (173.66) increase, respectively.
"The growth in Abu Dhabi's top-line performance was attributed to the city hosting a number of high-profile international events, including the Abu Dhabi Film Festival and the Fifa U-17 World Cup, which attracted nearly 80,000 visitors during the first two weeks of the competition," said Peter Goddard, managing director of TRI Hospitality Consulting in Dubai.
He said corporate and Mice activities resumed as the capital hosted several international medical conferences. Leisure tourism was propelled in the wake of the Eid Al Adha holiday, as the city provided a variety of family-friendly shopping and entertainment options, he added.