RSP Group survey ranks UAE as the most strategic GCC hospitality investment destination (page 1 of 2)

An in-depth investor survey was conducted by RSP Group alongside a detailed in-house analysis of the hospitality sector to assess investment opportunities and map the most lucrative destinations among the GCC countries. Over 150 senior members representing leading names in the hospitality sector who are attending the Arabian Hotel Investment Conference took part in the investor survey.

Revealing details of the survey, Mr. Blair Hagkull, Managing Partner, RSP Group, said,

"The results of the investor survey provide important insights into the future trends we can expect to emerge in the next few years, for example paralleling the boom in the regional real estate market almost 25% of regional industry leaders plan for their companies to go public to meet expansion plans in the next two years."

Mr. Hagkull also observed that from a hospitality product perspective, 'economy hotels' are tipped to offer the highest potential growth opportunities in the next 3 to 5 years followed by boutique hotels. While the 'mass tourism' sector will drive demand, 'adventure & eco tourism' are fast catching up. The survey also throws light on the potential of the outbound Asian tourism market to help drive future demand in the GCC.

Based on its own analysis of the GCC hospitality market, RSP Group has identified the UAE as the most competitive and dynamic destination, ranking it the highest with a score of 4.2 out of 5 in the RSP Group Hospitality MarketWatch survey. The second position has been taken by Oman, which scored 3.7 in the survey. The survey, the first of its kind in the GCC, evaluates the investment potential of GCC countries based on 10 key indicators that measure the comparative future hospitality investment environment.

Elaborating on the vibrant growth of UAE's hospitality sector, Mr. Hagkull said: "The rapid pace of economic diversification focussing on the services industry has fuelled the growth of the hospitality sector. An increasing flow of business and leisure travellers to the UAE has contributed to impressive room occupancies, encouraging an expansion in the portfolio of hotels and hotel apartments. The UAE has also emerged as an alternative destination for luxury property developers and high net worth individuals seeking to channel funds invested elsewhere back into the region."

Aside from stepping up economic diversification, initiatives such as aggressive marketing strategies, festivals, and the hosting of trade fairs and major regional events have also added to the UAE's appeal as a favoured tourist destination, stabilizing a previously seasonal market.

Referring to the overall GCC market, Mr. Hagkull said that market opportunities across the region have created competitive advantages over the mature markets of Europe and North America. Diversified product offerings, increased global awareness of the GCC as a tourism destination and rising intra-regional travel, have unleashed significant investment opportunities for strategic hospitality investors.