The majority of the hotel markets in the GCC experienced a drop in performance during Ramadan, according to figures released by STR.
Comparing the data from 26 May to 25 June, STR found that Muscat, Oman was the strongest performing region with a RevPar increase of 8.7%.
“The market’s 19.4% increase in occupancy outweighed a 9.0% drop in average daily rate (ADR),” said an STR spokesperson.
“Dubai was the only other market that did not report a significant decline in RevPAR, although performance was nearly flat as a decline in ADR (-1.5%) countered an uplift in occupancy (+1.2%).”
According to STR analysts, growing hotel supply and geopolitical issues are also having an impact on the region’s performance. School terms also factored into performance results—Saudi Arabia’s school term finished earlier, while school in some countries continued through the Ramadan period.
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Makkah, Saudi Arabia, reported an 8.8% decline in RevPAR, which was primarily the result of a 7.9% drop in occupancy to 74.3%. STR analysts noted that key religious tourism source markets, including Egypt and Indonesia, are experiencing currency devaluations against the Saudi Arabian Riyal, making it less affordable for potential visitors from those nations to embark on pilgrimages.