World travel organisation predicts 68 million visitors to Mid East by 2020

The Hotel Show, the Middle East's leading exhibition for the sector, is witnessing unprecedented growth and phenomenal global interest from key industry suppliers. This supports the forecast made by the World Travel Organisation.

Maggie Moore, Exhibition Director, The Hotel Show, commented,

"We have experienced year-on-year growth consistently, mirroring the pace of regional hospitality development. International suppliers are eager to develop in what is recognised to be a growing and sustainable market."

The findings of the survey, places the Middle East as the fastest growing destination in the world and is currently the fourth most visited region in the world, attracting 5 per cent of the world's tourists.

The popularity of Dubai has confounded industry analysts, having doubled the number of visitors, between1999 and 2005 to reach six million. Some had feared that Dubai's hotel market was overheating and that in particular it would not be able to sustain such dramatic growth. But with government plans to drive-in as many as 15 million tourists by 2010 and a 2005 budget surplus of US$ 1.58 billion to fund that expansion, it seems that Dubai will continue to defy the pessimists.

Undoubtedly Dubai's tourism industry will benefit still further from the new strategic plan which was outlined recently by HH Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Under the new nine-year economic plan, Dubai's GDP is expected to grow by 11 per cent annually reaching US$ 108 billion by 2015, from its current US$ 37.4 billion. Immigration, labour, housing, culture and transportation were highlighted during the announcement, all integral elements of the hospitality sector and the wider service-based economy.

What is even more remarkable is that higher occupancy levels have not been achieved at the expense of average room rates. Hotels throughout the Middle East recorded a world-beating 21 per cent growth in revenue per available room (revPAR) in 2005 with some investors and owners enjoying a return on investment (ROI) in just five years. Put into perspective, the rate of return is twice that of Asia and five times that of Europe.

Quite apart from iconic brands such as Armani, Missoni, Versace and Trump, who are all committed to projects in the region, corporate hospitality majors are now lining-up new openings. French group Accor, hopes to add another 40 hotels to its regional portfolio by 2009. Intercontinental Hotels has announced it will open 20 Holiday Inns, Easy Group has confirmed it will bring 38 hotels to the region by 2011. Millenium Hotels plans to oversee the development of 35 hotels in the MENA region over the next 5 years and Starwood aims to double its presence in the Middle East by 2012.

"With massive budget surpluses many economies in the region are diversifying and investing heavily in tourism and attracting key hotel operators. This accounts to a certain degree for the unprecedented level of regional hotel development and presents industry suppliers with unique market opportunities unrivalled anywhere else in the world," claimed Moore.

The Hotel Show, organised by dmg world media Dubai Ltd, one of the region's leading exhibition companies, is due to take place from June 3-5 2007, at the Dubai International Exhibition Centre and will showcase the very latest equipment, technology and service innovations for the hospitality industry.