Markets in the region eased restrictions and evaluated the efficacy of travel corridors resulting in the initial signs of recovery we saw at the close of 2020. Dubai in particular benefitted from the UK travel corridor over the festive period; however, this has since been removed. There is still uncertainty concerning the evolving landscape abroad when evaluating the long-term recovery of the market. A lack of clarity on when travel restrictions are applied due to COVID-19 cases makes it more difficult to plan for international travel. The introduction of “vaccine passports” is expected to ease travel planning for international tourists until then the focus for hotels remains on capitalizing on the more accessible domestic market (families and solo travelers).
The UAE and most KSA markets are expected to see a faster recovery in comparison to the other markets in the region. The UAE will potentially benefit from the build-up to the EXPO with the actual event expected to start in Q4 2021. On the other hand, the uncertainty regarding travel and pilgrimage with capacity and access restrictions are expected to impact the Holy Cities in 2021. The wider KSA market is expected to continue benefiting from the on-going tourism initiatives, upcoming mega projects as well as domestic tourism.
Key Highlights:
- UAE – The UAE markets continue to experience a sustained recovery, although undergoing a seasonal drop over the summer period. The Opening of Expo 2021 in September is expected to provide significant boost to demand over the winter months.
- KSA – The holy cities are expected to experience increased international demand in the last months of 2021 as Umrah capacity will be gradually expanded to accommodate 2 million pilgrims per month. In addition, the upcoming Riyadh Season and the first Jeddah Fomula 1 will encourage further domestic movements.
- Qatar – Doha has maintained a high level of demand across the year. This has been a combination of sustained quarantine demand as well as a phased opening to source markets.
