Muscat: The Revenue per available room (Rev PAR) in the Sultanate's hotel industry is predicted to experience a 4 per cent year-on-year growth in 2018, a new report from leading hotelier analysts Collier International suggested.
The anticipated yearly increase follows several months of RevPAR growth in Oman.
Mac Thomson, Chief Executive Officer of Falcon Hospitality LLC, told the Times of Oman, "The forecast rise in RevPAR is a welcome development and will encourage Oman’s hospitality and tourism sector, a major employer and an important part of Oman’s economy. While there are sure to be some hiccups going forward it is pleasing to see that the industry appears to have got past the nadir in terms of RevPAR,” he said.
The recent increase in oil prices have also helped, Thomson added. He said, “A recent increase in oil prices has injected some enthusiasm in the economy as a whole and has seen a pronounced improvement in the outlook for hotels. While Muscat has seen and will continue to see a substantial increase in the supply of hotel rooms, there is a growing appreciation of the relevance and potential of the industry.
“The increased investment in the hospitality industry, both in properties and infrastructure, particularly the new international airport, will provide new demand to offset this growth in supply.
“This projected increase in demand will bolster the occupancy rates of hotels. However, the ARR is unlikely to increase as the new hotels will introduce their properties to the market with lower introductory room rates.
“Overall Muscat is entering a period of significant growth that will lead to the establishment of a vibrant and dynamic tourism industry, an industry in which we can all invest and which will provide gainful employment for many.”
According to Collier International, in the past three years the hospitality industry in the MENA region has been in a cycle of declining RevPAR. It appears to have reached the nadir and is now trending upwards. This regional decline in the hospitality industry has been attributed to lower oil price and the ongoing security concerns for the region as a whole.