Amman - Hotel occupancy rates in Jordan increased by 3 per cent last year, rising from 63 per cent in 2007 to 66 per cent in 2008, according to the Ernest and Young Middle East Hotel Benchmark Survey.
The study, which gives an insight into the performance and trends of the fast-developing hospitality sector in the region, also indicated that the average room rate (ARR) rose by 13.6 per cent, from $116 in 2007 to $132 last year.
The Jordan Hotel Association (JHA) described the increase as satisfactory, taking into consideration the global economic crisis, but noted that maintaining this growth in 2009 was going to be difficult.
One of the challenges facing hoteliers this year is the global financial crisis, especially in the European market, JHA General Manager Yasar Majali told The Jordan Times.
"The challenge for British and European travellers is that the Jordanian dinar is pegged to the dollar. As a result, the value of the euro and sterling pound has dropped compared to Jordanian dinar, and this has affected European consumers' confidence," he said.
"Holidaymakers from these countries are postponing their journey plans, hoping for a change in the exchange rate," Majali noted.
He added that despite the hospitality sector's plan to increase inbound tourism by 20-25 per cent in 2009, "we still expect a drop, due to the global economic downturn".
He noted that no one can predict its impact in 2009, "but we will work hard to boost tourism and maintain the same occupancy rate we had last year".
Meanwhile, business advisory firm Deloitte confirmed a five-year run of double-digit revenue per available room (revPAR) growth for hotels in the Middle East, but its figures differed slightly from the Ernest and Young survey.
"This growth was buoyed by strong hotel performance at the beginning of 2008. Growth started to decelerate in September and dipped into the red during the month of December," a statement released by the company said.
It indicated that hotel occupancy rates in Amman reached 65.8 per cent in 2008, while the ARR stood at $137, and the revPAR at $90.
"The global economic downturn has had an impact on inbound hotel activity in the Middle East, but it is still too early to determine the full extent of the impact," said Robert O'Hanlon, tourism, hospitality and leisure partner at Deloitte Middle East.
"The Middle East has invested heavily in the tourism sector in recent years and is probably better placed to remain sound during a challenging time than other parts of the world and, with its great product offering, may emerge faster than other regions when there is an improvement in the world economy," he noted.
By Khetam Malkawi
© Jordan Times 2009
