Source : Great Hotels Organisation
Middle Eastern supply set to overtake demand forcing hotels to attract international guests -
Great Hotels Organisation has announced it believes the current hotel market’s bubble will burst by 2010.
Currently the Middle Eastern hotel market is enjoying a period of sustained growth due to the fact that demand for rooms outstrips supply.
During 2007, the Middle East hotel industry was the third fastest growing in the world, with occupancy levels increasing by 5% to an average of 71.6%. Dubai continues to achieve the highest absolute occupancy at 84.2%, yet Oman has emerged as having the region’s strongest growing market.
Oman’s growth has been attributed to the current imbalance between demand and supply, yet with room capacity set to double by 2012, this bubble could burst as part of a wider trend also to be seen across the region as a whole.*
According to GHO, this burst is due to occur as a result of the region’s over-reliance on Gulf Cooperation Council (GCC) guests. This is possible due to the high demand for a limited number of rooms, meaning occupancy can be filled by these local markets alone.