JEDDAH – Middle East hoteliers have reported improving occupancy and average room rates (ADR) boosted by double-digit demand growth for the first half of 2012, STR Global said Tuesday. The region's occupancy increased 8.7 percent to 58.2 percent during the month, its ADR fell 1.8 percent to $136.16 and its RevPAR rose 6.8 percent to $79.22. Year-to-date 2012, the region reported a 9.4 percent occupancy increase to 60.6 percent, a 1.5 percent ADR decrease to $162.37, and a 7.7 percent rise in RevPAR to $98.38. "Middle Eastern hoteliers reported improving occupancy and average room rates boosted by double-digit demand growth for the first half of 2012 compared to the first six months in 2011," said Elizabeth Randall, managing director at STR Global. "The occupancy and average room rate for the first half of 2012 is, however, still behind its peak performance of the first six months in 2008. For the first six months of 2008, the region achieved 70.9 percent occupancy and rate of $235.64. The region saw the highest increase in new room supply compared to the other world regions since 2008. Africa reported continued occupancy improvements whilst average room rates remain under pressure compared to the first half 2011. In contrast, looking back at the first half of 2008, the Africa region surpassed its average room rate performance by $12.68." Among the region's key markets, the June data showed that Muscat, Oman's capital, rose 34.1 percent in occupancy to 51.6 percent, posting the largest increase in the region. However, the data also showed that hotels in Doha ended the month with the largest occupancy decrease, falling 11.8 percent to 49.4 percent. STR Global said Dubai achieved the largest ADR increase, rising 9.8 percent to $170.07, followed by Amman with an 8.2 percent increase to $155.51. The STR Global data also showed that despite the occupancy rate increase, Muscat's ADR fell by the most (13.3 percent) in the Middle East to $152.90. It also showed that hotels in Jeddah posted a RevPAR increase of 18.2 percent to $195.70 while RevPAR in Dubai rose 18 percent to $125.25 and Muscat was up 16.3 percent to $78.87. Abu Dhabi fell 15.4 percent in RevPAR to $66.13, reporting the largest decrease in that metric in the region. Earlier this month, it was reported that the Middle East saw a one percent increase in international tourist arrivals in the first four months of 2012 compared to the same period last year. According to new figures released by United Nations World Tourism Organization, the region lagged global growth of five percent. The Middle East lost five million tourists last year due to the impact of the Arab Spring. – SG
