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More
than 169,000 pipeline rooms currently under contract across Middle East
· Gulf’s transactional market set for future growth as sector gathers for ATM 2022
Industry experts will gather
to discuss ‘the Middle East as a financial hub for future worldwide tourism
investment’ during the upcoming ITIC-ATM Middle East Summit at Arabian Travel
Market (ATM) 2022, which will take place at Dubai World Trade Centre
(DWTC) from Monday 9 to Thursday 12 May.
Hosted jointly by ATM and the
International Tourism & Investment Conference (ITIC), this year’s summit
will be held on Tuesday 10 May 2022, shining a spotlight on access to project
finance in the post-Covid era.
According to analysis from
BNC Network, hotel contracts worth US$4.5 billion are expected to be awarded in
the GCC during 2022, representing year-on-year growth of 16 percent.
The UAE generated the highest
value of cumulative hospitality-related contracts in the GCC last year,
followed by Saudi Arabia. The combined value of UAE and KSA projects accounted
for more than 90 percent of all hospitality contracts awarded in the region
during 2021, according to the research.
On a regional level, data
released by STR shows that more than 169,000 pipeline rooms are currently under
contract across the Middle East, the three most active cities being Dubai,
Makkah and Doha, respectively.
Danielle Curtis, Exhibition Director ME –
Arabian Travel Market, said: “Development in the Middle East is progressing at
a rapid pace. Fuelled by ambitious national initiatives such as Expo 2020
Dubai, FIFA World Cup Qatar 2022 and Saudi Vision 2030, our region is
witnessing significant levels of tourism-related investment, and this trend
shows no sign of abating anytime soon.
“The ITIC-ATM Middle East
Summit is the ideal forum in which to discuss trends, identify opportunities
and explore the project financing models that are being employed across our
region.”
Analysts from Colliers
International note that although the GCC’s transactional market has been less
active than its counterparts historically, recent sales such as the Address
Portfolio ($500 million in 2019) and Aldar Properties’ acquisition of Rixos Bab
Al Bahr ($205 million in 2022) are indicative of future growth. Their research
predicts that the GCC transactional market will continue to mature as regional
tourism markets reach a stabilised development phase.
Colliers International also points out that while the UAE market
accounts for the lion’s share of regional hospitality investment at present, contract
values in Saudi Arabia, which has announced numerous giga projects and masterplan
developments during recent years, will attract significant investment over the
longer term.
“We have witnessed an
impressive hospitality pipeline amass across Saudi Arabia, with 33,560 rooms
slated for Makkah and 19,500 spread throughout its other cities and coastal
areas,” said Curtis. “Giga projects like NEOM, the Red Sea Development and Rua
Al Madinah are gathering pace, with
investors and hotel operators competing for opportunity and market share.”
The Middle East is
increasingly being used as a springboard to raise capital for tourism projects
as it offers appropriate financial instruments as well as agile financing
modalities. A range of funds are available to support private initiatives
through investment loans or share owning in projects, and developers looking to
secure investment can submit expressions of interest to ITIC by completing the
organisation’s online form.
Ibrahim Ayoub, CEO of ITIC,
said: “Whether joining us in person or remotely, summit attendees will benefit
from insights into the latest techniques that are being employed to turn Middle
East tourism projects into reality, as well as practical takeaways from thought
leaders.”
The ITIC-ATM Middle East
Summit will include expert insights from Gerald Lawless, Director of the
International Tourism & Investment Conference (ITIC) and World Travel &
Tourism Council (WTTC) Ambassador; Hon. Edmund Bartlett, Minister of Tourism
for Jamaica; and Dr Taleb Rifai, Chairman of ITIC and former Secretary-General
of the UN World Tourism Organization (UNWTO).
“Our expert speakers will share their opinions of the
Middle East’s hotel development landscape during the summit, and this topic will
no doubt represent a key focus at other sessions during the show,” Curtis
added. “We look forward to having
an in-depth discussion about GCC hospitality investment along with
delegates, exhibitors and visitors from around the world at ATM 2022.”
Now in its 29th year and
working in collaboration with the Dubai World Trade Centre (DWTC) and Dubai’s
Department of Economy and Tourism (DET) – formerly the Department of Tourism
and Commerce Marketing (DTCM) – ATM show highlights in 2022 will include, among
others, destination summits focused on the key source markets of Saudi Arabia
and India.
Previously called Travel
Forward, the revamped and rebranded ATM Travel Tech event has expanded by
almost 400 percent year on year. In addition to showcasing the latest travel
technology products and services, the ATM Travel Tech Stage will host a series
of seminars, debates and presentations, as well as the inaugural ATM
Draper-Aladdin Start-up Competition.
The
dedicated ARIVALDubai@ATM forum, meanwhile, will cover current and future
trends for tour operators and attractions, focusing on growing business through
marketing, technology, distribution, thought leadership and executive-level
connections.
ATM
will once again play an integral role in Arabian Travel Week, a festival of
events dedicated to enabling travel professionals from all over the world to
collaborate and shape the recovery of the Middle East travel industry through
exhibitions, conferences, breakfast briefings, awards, product launches and networking
events.
The
UAE remains one of the most Covid-secure countries on the planet, with
consistently low case rates and robust measures to ensure tourists' safety at
every stage of their visit. Like its neighbouring emirates, Dubai is committed
to maintaining the highest hygiene and safety standards. The WTTC has endorsed
its pandemic management, awarding the city a 'Safe Travels' stamp.
In
line with the UAE government’s forward-thinking transition to the
Monday-to-Friday workweek, this year’s edition of ATM will commence on Monday 9
May.
The latest ATM news stories
are available at https://hub.wtm.com/category/press/atm-press-releases/.
