Higher occupancy rates fuel revenue growth in Gulf Cooperation Council region: STR
Ahead of Arabian Travel Market 2025, market and data analytics company Smith Travel Research (STR) in its new report has highlighted that the hospitality sector across the Gulf Cooperation Council countries has registered a rapid growth in 2024, attributing the growth to key factors such as economic diversification efforts and luxury tourism development.
In a press statement, the organisers of ATM say that aggregated Revenue per Available Room (RevPAR) across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arabs Emirates (UAE) increased by 5.4 pc compared to 2023, which is largely driven by rising occupancy rates.
The statement adds that the GCC’s average occupancy rate in 2024 reached 69.5 pc, exceeding pre-pandemic levels. The Average Daily Rate (ADR) in the GCC grew additionally grew by 2.4 pc in 2024, with the luxury hotel segment driving much of this increase. Over the past decade, the region has added more than 35,000 hotel rooms, with the luxury segment expanding from 16 pc to 19 pc of total room inventory.
Additionally, government initiatives such as Saudi Vision 2030 and the UAE’s ‘We the UAE 2031’ campaign have significantly contributed to this success, as these strategic plans focus on economic diversification, infrastructure enhancement, and elevating the overall tourism experience, further cementing the GCC’s status as a competitive player in the global tourism industry.
Meanwhile according to STR report, which was conducted on behalf of Arabian travel market 2025, luxury accommodations will continue to dominate hotel development, with over 33,000 rooms currently in the pipeline.
Notably, Saudi Arabia has more luxury rooms under development than its existing supply, underscoring the Kingdom’s ambition to lead in high-end tourism.
Danielle Curtis
“Luxury hospitality continues to be a driving force behind the region’s tourism growth, offering exceptional experiences that attract high-spending travellers from around the world. Luxury hotel exhibitors will be a key part of ATM 2025, showcasing the innovative hospitality concepts that are redefining the industry. As demand for premium travel rises, the GCC is well-positioned to strengthen its reputation as a global luxury tourism hotspot,” says Danielle Curtis, Exhibition Director ME, Arabian Travel Market.
Meanwhile, ATM 2025 is set host a diverse lineup of leading hospitality and luxury brands, including IHG hotels & resorts, Jumeirah International, Address hotels plus resorts, Mandarin oriental, Four seasons, Kempinski, Kerzner international, the Peninsula hotels, Hilton worldwide, and Wyndham hotels and resorts Middle East.
During this event, Managing Director for India, Middle East & Africa at IHG hotels & resorts Haitham Mattar will share insights into the evolving hospitality landscape.
According to press statement, Mattar will host a session titled “Hospitality Redefined: find your competitive edge” addressing the challenges and opportunities shaping growth across the Middle East, Africa, and Southwest Asia.
Other guests like Sarah Duignan, Client Relationships Director at STR will explore how individual GCC markets are contributing to the region’s overall success, while Jeremy Bowen, CEO, Cirium will discuss passenger trends and aviation’s role in tourism growth in the session “Connecting the dots: benchmarking aviation and hospitality.”
The press statement also adds that in line with this year’s theme, ‘Global travel: Developing tomorrow’s tourism through enhanced connectivity’, Arabian Travel Market will spotlight the trailblazers redefining the sector by bringing together professionals from leisure, business events (MICE), luxury and corporate travel industries.
Moreover ATM will also serve as a platform for networking, knowledge-sharing, and business opportunities where participants will gain exposure to the latest trends, innovations, and developments shaping the future of global tourism.
To held in conjunction with Dubai World Trade Centre, which include ATM 2025’s strategic partners like Dubai’s Department of Economy and Tourism (DET) as Destination Partner, Emirates as Official Airline Partner, IHG Hotels & Resorts as Official Hotel Partner, and Al Rais Travel as Official DMC Partner, this event will be held on from April 28 to May 1, ATM will bring together travel professionals from around the world to exchange insights and explore the future of the industry.
Haitham Mattar
“Several markets across the GCC region are experiencing an exciting phase of growth in tourism and hospitality, driven by key government initiatives resulting in an increase in demand across hotel segments. Historically, markets in the GCC region have been driven by luxury hospitality and demand is set to rise owing to factors such as development of giga and mega projects, increased business activity and rise in leisure travel. As we bring and grow more world class brands in the region including Regent, Six senses, InterContinental, Kimpton, Vignette collection, hotel Indigo, we are committed to contributing to the dynamic hospitality landscape, offering elevated experiences for a wide range of travellers. As we look forward to ATM 2025, we anticipate a great opportunity to build meaningful connections and showcase how IHG is helping shape the future of hospitality in the region,” says Haitham Mattar, Managing Director across India, Middle East & Africa, IHG.
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