Hotels' activity improves despite tourist scarcity

Occupancy in Beirut at 65 percent in first half, rooms’ yield up by 20 percent y-o-y

Hotels in Beirut saw an average occupancy of 65 percent during the first six months of the year, up from 54 percent in the same period last year, according to Middle East Hotel Benchmark Survey by Ernst & Young.

While the average room rate was unchanged year-on-year at $207, the room yield jumped to $135, up 21 percent. The survey provides a performance overview of a set of international branded and operated hotels across the five star and four star segments.

The improvement indicated in the survey contradicts the drop in tourist numbers reported since the beginning of the year. Pierre Achkar, president of the Association of Hotel Owners, said the slowdown has affected hotels of all grades equally. “The majority of hotels, especially those outside Beirut, are not operating properly,” Achkar said. He said activity is expected to improve around the Eid el Fitr holiday.

As per official data, the number of incoming visitors fell by eight percent y-o-y, to top 714,000 visitors at end-June. Arab tourist numbers were down by half from last year to top 264,000. The number of Syrian visitors entering the country via overland crossings, however, has more than doubled, especially in May and June. Syrians are not counted in the official records of incoming tourists.

Reported by Hanadi Chami