The city of Ras Al Khaimah (RAK) will see the highest percentage of hotel occupancy in 2021 compared to other markets in the region, according to a new market forecast.

RAK’s occupancy is expected to be 89 percent in 2021, up 27 percent on 2020, Colliers’ MENA Hotels Monthly Market Forecast said.

The UAE has seen gradual easing of international travel restrictions across the country, which is expected to have an overall positive affect for the UAE markets. However restrictions in place from key source markets such as the UK, Russia, China and India, slow demand’s rate of return, the report said.

The northern emirate had the highest projected occupancy according to Colliers’ forecast, followed by Dubai Marina at 72 percent expected occupancy, then Palm Jumeirah and Doha, Qatar, at 69 percent expected occupancy, and Dubai Creek/Festival City at 65 percent.

Saudi Arabia

The uncertainty regarding travel and pilgrimage with capacity and access restrictions are expected to impact the Holy Cities in 2021.

Occupancy in Makkah is expected to be 27 percent this year, up 30 percent on 2020. Occupancy in Jeddah is expected to be 53 percent, up 38 percent on last year.

“The wider KSA market is expected to continue benefiting from the on-going tourism initiatives, upcoming mega projects as well as domestic tourism,” Colliers noted.

(Writing by Imogen Lillywhite; editing by Daniel Luiz)

imogen.lillywhite@refinitiv.com

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