MAY has turned out to be the magic month for Bahrain’s hotels which witnessed high occupancy levels beating the performance of some countries in the Middle East, according to the latest data.
Staycations, re-opening of King Fahad Causeway and the quarantine business were the three main drivers of the increase in the number of guests staying at four-and five-star properties.
Data released by the UK-based HotStats, which provides a unique profit and loss benchmarking service to hoteliers from around the world, shows RevPAR recorded in Bahrain’s hotels in May was $76.84 compared with $23.16 during the same period last year – indicating a 231.8 per cent increase.
RevPAR is the total bedroom revenue divided by the total available rooms during a specific period.
Bahrain’s hotels performed better than some Gulf and Middle East countries in May this year
Growth
In addition, Bahrain’s Total RevPAR (TRevPAR) recorded in May was $126.31 compared with $41.91 in May 2020 – reflecting a 201pc growth.
TRevPAR is the combined total of all revenues divided by the total available rooms.
“Since March 2020 was the first month when the pandemic effects were felt in the Middle East, occupancy levels in Bahrain reached 52pc in March 2021,” HotStats Europe, the Middle East and Africa (EMEA) Hotel Intelligence director Agnieszka Wojciechowska told the GDN.
“After a big drop in April, it’s going up again and reached 43pc in May 2021.”
She said TRevPAR Year on Year (YoY) increase exceeded 200pc and as well as did RevPAR.
“GOP PAR was also on the rise with $24 for May and over $17 this year.”
GOP PAR is the total gross operating profit for the period divided by the total available rooms.
Ms Wojciechowska said both Bahrain and Saudi Arabia depend on the leisure sector as the main driver of demand.
“Whilst most of Europe and the US is closed for travel, travel within the GCC will be popular and certainly will positively impact countries like Bahrain,” she said.
The causeway, which is strategic tourism artery for Bahrain, was closed since March 8, 2020 as part of a series of strict measures to control traffic transiting both countries and limit the spread of the coronavirus. It reopened on May 17 this year for double-jabbed visitors and Covid-19 recovered.
“With the travel restrictions removed, the hospitality sector will certainly benefit.
“Re-opening of the causeway opened opportunities for the weekend business in Bahrain and this will have a great impact on the recovery of the leisure sector in particular.
“Extended upcoming holidays (Eid Al Adha) will also boost performance in hotels.”
Overall, the expert said, the Middle East is experiencing a rebound with higher rates and rising occupancy.
In the Middle East, RevPAR (May 2021) was recorded at $76.57, a 222pc increase over the prior year, helping lead to a TRevPAR of $120.88, a 228pc increase over the same time a year ago.
GOP PAR hit $37.29 in the month, 430pc higher than at the same time a year ago.
“The Middle East has now had 10 consecutive months of positive profit performance,” said Ms Wojciechowska.
Ms Wojciechowska
Several hotel operators had to scale down their operations by resorting to layoffs and reduced working hours following a slump in the conference sector as events and conferences continue to be held virtually. Recovery of the business market has been slower compared with the leisure market.
The latest Bahrain Economic Quarterly Report for Q1 2021 that summarises the economic growth results for the country showed that the Hotels and Restaurants sector is “still hampered by the effects of the pandemic registering the biggest YoY decline”.
A breakdown of Bahrain’s hotel performance in May this year
Pandemic
It added that this sector remained the most significantly impacted sector due to the pandemic, as its nominal GDP declined by 2.5pc quarter on quarter (QoQ) and by 20.4pc YoY.
However, despite the drop in the number of visitors several economic indicators displayed signs of gradual recovery during the first quarter compared with Q4 2020, with the average occupancy rate growing by 43.5pc in four-star properties and 6.9pc in five-star hotels.
The GDN reported this week that a new Tourism Strategy 2.0 will be unveiled in the coming month to boost the sector in a post-pandemic world.
sandy@gdn.com.bh
&uuid=(email))