Special
industry theme for Arabian Travel Market to focus on demand for midscale
accommodation and services as Middle East hospitality and tourism sector looks
to new segment opportunities
Mid-market
travel, which is a key growth segment for the region’s hospitality and tourism
sector, has been selected as the official show
theme for Arabian Travel Market (ATM) 2016, which will take place at the Dubai
International Convention & Exhibition Centre from 25-28 April 2016.
“Data
released by Jones Lang LaSalle (JLL) revealed that up to 50% of the 3,600 new
hotel rooms to enter the Dubai market in the final months of 2015 have a 3-star
or lower rating, while competitive room rates are set to rival the luxury
market, as 69% to have four stars or less according to research,” said Nadege Noblet-Segers,
Exhibition Manager, Arabian Travel Market.
“This
will add much-needed midscale room stock to the emirate’s hotel landscape,
where three-star or below room supply only accounted for 29% of total
availability in the first quarter of 2015,” she added.
Destinations
like Dubai are already putting in place programs to encourage investment into
midmarket hotels such as the release of government land plots for three and
four-star hotel projects, speeding up of the construction permit approval
process to just two months, and the waiver of the 10% municipality room tax for
four years upon completion.
Dubai
currently has a total hotel key count of approximately 94,000. This figure is
set to rise to between 140,000 and 160,000 keys by 2020 with around 20% set to
target the mid-market hotel sector. A host of global hotel brands and local
UAE-based operators are targeting the aggressive brand expansion in this area,
especially after the latest Knight Frank report.
The
study revealed that the Dubai segment showed a year-on-year RevPAR increase of
0.5% during the first quarter of the year, which was driven by an increase in
average rate at a time declining performance for the luxury and upper upscale
segments. Demand is being driven by a growing middle class in markets such as
China, India and Africa combined with budget Generation Y travelers and young
families.
“There is massive
pent-up demand for new midscale projects and this could also be the catalyst
for a new wave of visitors for whom saving money on their hotel stay would free
up their budget to spend in other areas from dining and attractions to shopping
and excursions,” said
Mohamed Awadalla, CEO, TIME Hotels, which has an active
portfolio of properties covering both the upscale and midmarket segment.
“ATM
will also be a great opportunity for hoteliers like ourselves to present the
argument for investment into midrange hotels, which
are cheaper and faster to build, and also require fewer staff once open for
business,” he added.
Global mid-market brand
Louvre Hotels, official show theme sponsor, will also be exhibiting at ATM 2016
with a focus on promoting a more affordable Middle East hospitality
experience.
“Budget airlines and affordable public transportation have been
key to attracting the budget traveler and, at Louvre Hotels, we aim to continue
to assist developers and governmental agencies by introducing unique modern offerings
in the budget, midscale sectors. With over 55 hotels in the MENA region, we are
a key player especially in the two to four-star range, and will continue to
support a value for money offering,” said Amine E. Moukarzel, President, Louvre
Hotels Group & Golden Tulip MENA.
As
well as substantial representation from hotels with products in the mid-market
sector, ATM 2016 has also seen interest and healthy growth from destinations
from around the world, tour operators and tourist attractions all with
mid-market product offerings. From an aviation perspective, flydubai and Flynas
have already confirmed their participation at the 2016 show.
The
2016 event will also grow with the announcement of an additional hall as Reed
Travel Exhibitions looks
to build on its record-breaking achievements this year, which saw total
attendance increase by 12% to reach over 36,000 exhibitors
and visitors.
Arabian
Travel market forms part of the World Travel Market Portfolio, and comprises of
the leading leisure travel events in the world; World Travel Market in London,
WTM Latin America in Sao Paulo and WTM Africa in Cape Town, plus recently
launched WTM connect Asia and WTM connect China, unique hosted buyer 1-2-1meetings
events.
In
2014, the WTM Portfolio facilitated around US$7 billion in industry deals from
negotiations between the more than 15,000 buyers, 9,500 exhibitors (1,500 main
stand holders and 8,000 stand sharers) in attendance of its four events.
For
more information on Arabian Travel Market 2016, please log on to: www.arabiantravelmarket.com
