Middle Eastern Destinations Lead Global Travel Recovery

The next generation of Saudi Arabian hotels is coming, marked by the opening of the Kingdom’s multi-billion-dollar giga-projects. Marriott is showing what is possible at these spare-no-expense properties: Asking for the highest room rates in the country.

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.

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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.

Etihad Airways looks forward to welcoming over 1.5 million travellers at Abu Dhabi International Airport between November 21 and January 8. Abu Dhabi kicked off a calendar of events with The Formula 1 Etihad Airways Abu Dhabi Grand Prix held between November 17 and 20 last week. Football fans from around the world will also be flocking to the region as the FIFA World Cup started in Doha from Sunday. “Etihad with its partners, is geared up and ready to host 1.5 million expected guests over the next six weeks,” said Shaeb Al Najjar, general manager of hub operations at Etihad Airways.

A job opening for a hotel wanting an “organic chef” or someone who can handle “procurement and environmental, social, and corporate governance,” underlines the importance of sustainability as a value proposition helping them with talent acquisition and retention.

Good morning from Skift. It’s Wednesday, December 7. Here’s what you need to know about the business of travel today.

Having witnessed a stronger than expected recovery in 2022, the Middle East could see international tourist arrivals return to pre-pandemic levels this year, according to the United Nations World Tourism Organization (UNWTO). Data from the UNWTO World Tourism Barometer noted that while all regions enjoyed significant increase in international arrivals in 2022 over the previous year, the Middle East recorded the strongest relative increase as international tourist numbers climbed to 83 percent of pre-pandemic numbers last year. “The region welcomed large events such as Expo 2020 Dubai and the FIFA World Cup in Qatar, as well as a highly attended Hajj pilgrimage in Saudi Arabia,” noted UNWTO in its report.  “UNWTO anticipates a strong year for the sector even in the face of diverse challenges including the economic situation and continued geopolitical uncertainty,” Secretary General Zurab Pololikashvili said. UNWTO noted that over 900 million tourists travelled internationally in 2022, which was double the number of those who travelled in 2021 though still 37 percent below 2019.

The post-Covid recovery of the real estate sector in Saudi Arabia is led by increasing tourist demand and government spending on infrastructure projects such as the investment in King Salman International Airport, Deloitte noted in its latest real estate report. In 2022, both average daily rate (ADR) and occupancy improved from 2021 as market-wide recovery was supported by the ease of travel and faster visa processing for tourists, according to the report. The first three months of the year were the strongest for occupancy performance in Riyadh, reaching 76 percent in March. Meanwhile, Jeddah hotels recorded the highest occupancy performance in May at 59 percent. The facilitation of a tourist visa for Gulf residents and the visa on arrival extension to UK, U.S. and European Union residents aims to support the country’s ambition to welcome 100 million visitors a year by 2030, the global consultancy firm noted in its report.

Hotel development in the Middle East is ramping up as investors begin to see opportunity in the region again, according to Lodging Econometrics’ Middle East Construction Pipeline Trend Report. The report said new project announcements in the region continued to trend upward throughout 2022 closing the fourth quarter of 2022 with 67 new projects housing 19,837 rooms, an increase of 56 percent year-on-year. The fourth quarter also witnessed 33 new hotels accounting for 6,452 rooms open in the region. Overall, 2022 saw a record number of hotels openings with 81 hotels accounting for 17,736 rooms. Lodging Econometrics’ forecast for new hotel openings in 2023 is 123 new hotels with 30,113 rooms while 116 new hotels and 29,085 rooms are forecast to open in 2024. Countries in the Middle East with the greatest number of projects in the construction pipeline at the close of fourth quarter were Saudi Arabia with 243 projects and 67,618 rooms, followed by the United Arab Emirates with 104 projects and 29,210 rooms. Egypt came third with record high project and room counts of 87 projects and 21,672 rooms.