MENA hoteliers expected to see a challenging 2019

Despite operators and owners expect to remain cautious, the long term is more optimistic with Egypt a market to watch, says analyst

Opinion, Analysis, Mena hotels and resorts

Speaking exclusively to Hotelier, Christopher Lund, head of hospitality at Colliers International MENA, said that 2019 is expected to remain a challenging environment for hoteliers for the most part across Middle East and North Africa (MENA). Operators and owners are expected to remain cautious, and look to further enhance cost saving measures in an effort to remain competitive.

Lund told Hotelier that the key challenge for hoteliers this coming year is maintaining profit margins in light of greater competition, and the growth of more price sensitive demand. “Some hoteliers are doing this very successfully by adopting tighter cost control measures made possible by clustering opportunities, streamlining food and beverage (often leasing to third parties), and out sourcing parts of their operations like housekeeping,” he said.

Looking further ahead, however, he pointed out that the medium to long-term outlook is much more optimistic. “This is underpinned by the enormous governmental tourism initiatives which are currently in place across the region, such as in the Saudi Arabia Vision 2030,” he said.

Did you like this story?
Click here for more

Lund also revealed that Egypt would be a market to watch since, he said, there are renewed efforts by the Egyptian Tourism Ministry to strongly market and diversity the offering, as well as targeting new source markets. “These efforts are already showing fruition, illustrated by the surge in tourism demand seen recently across the country,” he added.

Read the full Hotel Outlook article in the January issue of Hotelier Middle East.

For all the latest hospitality news from UAE, Gulf countries and around the world, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page.

Most Popular

Newsletter

Reports

Human Capital Report 2017

Human Capital Report 2017

The second annual Hotelier Middle East Human Capital Report is designed to explore the issues, challenges and opportunities facing hospitality professionals responsible for the hotel industry’s most important asset – its people. The report combines the results of Hotelier Middle East's HR Leaders Survey with exclusive interviews with the region's senior human resources directors.

Hotelier Middle East Housekeeping Report 2016

Hotelier Middle East Housekeeping Report 2016

The Hotelier Middle East Housekeeping Report 2016 provides essential business insight into this critical hotel function, revealing a gradual move towards the use of automated management and a commitment to sustainability, concerns over recruitment, retention and staff outsourcing, and the potential to deliver much more, if only the industry's "image problem" can be reversed.

From the edition

From the magazine