DUBAI: Hotel occupancy in the Middle East and Africa fell 11 percent in March and margins fell 16 percent from the same month in 2008, with regional tourism hubs Dubai and Egypt hardest hit by the downturn, a report said.
The pain continues for Egypt and Dubai, two of the biggest success stories in 2007 and 2008, James Chappell, managing director of STR Global, said in the report. Dubai has lost over 30 percent in the first quarter of 2009.
Hotel occupancy in Dubai, which lures Western tourists with its beaches and shopping, was down 15.8 percent in March while revenue per available room (revPAR) fell almost 41 percent, suggesting that hotels have been slashing prices.
In Egypt, home of ancient monuments that have long attracted tourists, hotel occupancy rates fell almost 15 percent in March and revPAR was down over 18 percent compared to the same month of last year.
That could have a severe economic affect in Egypt, where around 10 percent of the workforce is involved in tourism.
Hotels in many cities have been hit this year as companies struggling through a global economic downturn slash corporate travel budgets, while employees worried about losing their jobs or bonuses hold back on expensive holidays.
While Dubai and Cairo, which rely heavily on foreign visitors, have been hit, other cities in the region have fared better.
Out of 11 cities reviewed, Beirut recorded the highest increase in occupancy and revPAR. Occupancy was up 126.3 percent to 72.9 percent, and RevPAR rose 245.8 percent to $118.53, as the city, which relies heavily on visits home by Lebanese expatriates, goes through a period of relative political calm.
Jeddah, the Red Sea port of Saudi Arabia, also saw occupancy rise 15.3 percent and revPAR increase 38.7 percent to $119.
But Muscat and Amman both reported occupancy decreases of more than 20 percent while Cape Town and Istanbul saw revPAR fall over 29 percent.
