Expo 2020 has had a positive impact on all markets in the UAE, while the FIFA World Cup Qatar 2022 is expected to result in overspill demand to the key transit hubs in Dubai and Abu Dhabi, Colliers said in its monthly hotel report for MENA.
However, rising instability in key CIS source markets is expected to suppress demand, with the largest impacts expected in Dubai and Ras al Khaimah, it said.
Given the diversity of source markets for the UAE, additional hotel demand may be induced from alternative markets at a lower price positioning.
Referring to Saudi Arabia, it said the Riyadh Season and growing consumer confidence has benefitted both the Riyadh and Jeddah markets. While positive indications on the return of pilgrim demand has improved the outlook for the Makkah and Madinah markets. \
The rising price of oil has historically led to increased corporate demand in Al Khobar/Dammam, however, an increase in outbound travel may reduce this impact.
Doha has experienced a slight decrease in occupancy over H1 2022 compared to the previous year. However, FIFA World Cup Qatar 2022 is expected to result in super-normal levels of demand for its duration in the final quarter of the year.
On regional outlook, the report said covid restrictions on inbound travellers to Jordan were eased as of March including the lifting of PCR testing requirements. Given the large tour driven demand in the market, this is expected to improve after in the year.
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