DUBLIN, Aug. 8, 2023 /PRNewswire/ — The “GCC Hospitality Market: Analysis by Segment (Hotels and Serviced Apartments), By Region Size & Forecast to 2028” report has been added to ResearchAndMarkets.com’s offering.
The report provides a comprehensive analysis of the hospitality industry in the Gulf Cooperation Council (GCC) region
In 2022, the GCC hospitality market was valued at US$25.61 billion, and is probable to reach US$37.62 billion by 2028. The GCC hospitality industry has diversified and witnessed a positive segmentation with the introduction of mid-scale brands and serviced apartments. Hotel groups have started to look at new ways of operating with higher efficiencies to suit the current market conditions and achieve revenue maximization.
The long-term prospects of the GCC hospitality industry remain positive owing to expected economic recovery, government’s diversification efforts, sizeable investments towards infrastructure development, relaxation of visa rules and liberalization policies, continued safety measures against the pandemic, coupled with innovative and technological solutions being offered by hotel operators. The GCC hospitality market value is projected to grow at a CAGR of 6.62%, during the forecast period of 2023-2028.
Key Highlights:
- Market Size and Growth: The GCC hospitality market was valued at US$25.61 billion in 2022 and is projected to reach US$37.62 billion by 2028. The market is expected to grow at a CAGR of 6.62% during the forecast period of 2023-2028.
- Market Segmentation: The GCC hospitality market is divided into two segments – Hotels and Serviced Apartments. The hotel segment dominated the market in 2022 due to government initiatives encouraging investments in the hospitality industry. On the other hand, the serviced apartment segment is expected to have the highest CAGR in the future as travelers are increasingly seeking flexible and personalized lodging options.
- Regional Analysis: Saudi Arabia enjoyed the highest market share in the GCC hospitality market in 2022, followed by the UAE, Qatar, Bahrain, Oman, and Kuwait. Saudi Arabia’s recent ground-breaking measures and liberalization policies have uplifted its social and cultural environment, making it more attractive for business and tourism.
- Growth Drivers: Rising travel spending, mounting hotel supply, increased tourism, GDP growth in GCC countries, upgrading of transport infrastructure, eased visa regulations, and hosting mega events are some of the key growth drivers for the GCC hospitality market.
- Challenges: The GCC hospitality sector faces challenges related to supply chain concerns and labor shortages. These difficulties can impact the industry’s operational efficiency, cost-effectiveness, and service quality. Economic factors and seasonality are also challenges faced by the GCC hospitality market.
- Trends: Serviced apartments have emerged as a major trend in the GCC hospitality market, providing an alternative lodging choice that caters to guests’ changing demands and tastes. Other trends include digitalization, government initiatives, and religious tourism.
- Impact of COVID-19: The COVID-19 pandemic had a significant impact on the hospitality industry in the GCC, resulting in decreased business and leisure travel, lower occupancy rates, and revenue declines. However, the sector is expected to witness growth driven by improving macro-economic factors and continued infrastructure development.
- Competitive Landscape: The GCC hospitality market is moderately fragmented, with several key players operating in different regions. Mergers and acquisitions have been observed as companies seek strategic expansion.
Competitive Landscape and Recent Developments:
The GCC hospitality market is moderately fragmented, with different companies dominating in various GCC regions. M&A activity in the GCC hospitality industry has picked up as companies are looking for strategic expansion or mergers to form stronger entities. Key players of GCC hospitality market are:
- Seera Holding Group
- Gulf Hotels Group B.S.C.
- Abdul Mohsen AI Hokair Group
- Abu Dhabi National Hotels Company PJSC
- National Hotels Company
- National Corporation for Tourism and Hotels
- Al Sraiya Hotels & Hospitality Group
- Dur Hospitality Co.
- Katara Hospitality
- Kingdom Holding Company
- Safir Hotels & Resorts
- IFA Hotels and Resorts
- Landmark Group (CityMax Hotels)
For more information about this report visit https://www.researchandmarkets.com/r/cm6fv3
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