Middle East Heats Up in Luxury Hotel Pipeline Competition

The United Arab Emirates has established the General Commercial Gaming Regulatory Authority, known as the GCGRA, a federal-level entity to regulate and establish “strict guidelines” for the country’s commercial gaming industry. The GCGRA sets the scene for future casinos where Ras Al Khaimah already has the confirmed Wynn resort; a potential “Arabian Strip;” and gaming in other emirates, including Dubai and Abu Dhabi.

In the second quarter of 2023, the Middle East’s hotel construction pipeline has seen significant growth, marking its highest project count since the first quarter of 2020, according to Lodging Econometric’s Middle East Hotel Construction Pipeline Trend Report.

WHY IT RATES: Pleasant Holidays and its luxury brand, Journese, has added new Egypt, Jordan and Nile river cruise itineraries that can be customized to include such iconic destinations as Cairo, Luxor, Amman, Petra and the Dead Sea. — Laurie Baratti, TravelPulse Associate Writer

Travel and tourism in the Middle East and Africa region, the focus of another recent region-specific research study by m1nd-set, is experiencing a robust revival, according to the Swiss travel and travel retail research agency.

While luxury boutique hotels have always appealed to a certain set, Small Luxury Hotels of the World is trying to create more converts. In October, it launched a marketing campaign around a so-called “private collection” to amplify the message that “smaller is better.”

We used to talk in pre-pandemic years about how travel is moving East, with the epicentre and greatest volumes of travel no longer happening in North America or Europe, but in Asia. The pandemic has shifted that momentum back somewhat, and the Middle East has really taken on the role of connecting parts of the world.

The United Arab Emirates government on Sunday announced the lifting of all precautionary measures implemented in the country during Covid-19. With the lifting of restrictions, wearing of masks has now been made optional in all open and closed facilities, including places of worship and mosques. However, those categorized as “people of determination” would be required to wear mask while visiting health facilities and centers. The Al Hosn app would now only be required to furnish proof of vaccination and for test results inside and outside the country, when required. The green pass on the app would no longer be required to enter public facilities and sites. The requirement of a polymerase chain reaction test would also no longer be made mandatory for those attending or participating at sporting events. The authorities said they have decided to ease the restrictions after studying the epidemiological situation in the country and having monitored occupancy rates in hospitals and intensive care for Covid cases.

American Express Global Business Travel has partnered with Emirates Group-owned dnata to offer its global clients more local expertise in the Middle East region.

The Middle East is leading international travel recovery in the fourth quarter as inbound arrivals to the region witnessed an increase of 4 percent, long ahead of the global average of a decrease of 30 percent, according to travel analytics firm ForwardKeys. “The FIFA World Cup is certainly the key driver for its travel recovery,” said Juan Gomez, head of market intelligence at ForwardKeys. The latest air ticketing data by ForwardKeys also shows that international arrival levels may be back to normal in 2023, with travel to the Middle East up by 15 percent on pre-pandemic levels in the first quarter. Overall, the outlook for 2023 looks promising, despite high inflation in key source markets and the looming recession, FowardKeys noted. The Middle East is also attracting more premium travellers than in 2019, the travel analytics firm noted with Saudi Arabia showing the greatest growth. Qatar, Egypt, Jordan, and Lebanon are also showing growth, with a regional average of 11  percent above 2019.

CEO Christopher Nassetta said Hilton expects to organically develop its own new brands rather than chase costly acquisitions in part because “we don’t want to have to fix other people’s problems.”

In some ways the Middle East is a victim of its own success: It weathered the pandemic relatively well, and the luxury market proved resilient. But now as tourism to the region swiftly recovers, the challenge is how do brands operating there stand out when inter-regional competition is so fierce?

U.S. startups have honed the process of failing fast and learning through minimal viable product adaption — a lesson the Middle East and North Africa (MENA) funding ecosystem should leverage.