Business prospects bright for hoteliers: Deloitte

Guest Writer

Hotels in the Middle East are likely to see an upturn in business, according to the Tourism Hospitality and Leisure Industry Group at Deloitte.Airline arrivals in the Middle East are up 15%, tourist arrivals are growing between five and nine percent and regional GDP is forecast to grow 4.5% this year.The company says that in 2007 when the Middle Eastern market started showing a decrease in growth, it was an adjustment rather than a market crash. “The global downturn happened at the same time that new supply of hotel accommodation came on stream, and that basic laws of supply and demand had been the principle reason for the market adjusting in the way it had,” said Senior Manager for the Tourism Hospitality and Leisure Industry Group at Deloitte Middle East, Bradley Holliday.The company says the challenge is now for the industry to convert transit passengers into bed nights - by getting them out of airports and into local hotels. The growth of low-cost airlines helps this, although it brings a lower potential average daily room rate for hoteliers.

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