Sunday, November 28, 2021

Destination Reports

Marrakech, the rising star of Africa
October 2018 5737

Based on H1 2018 figures from STR, the leading provider of data and analytics for the global hotel industry, Marrakech has emerged as a standout performer among key African cities.

In the first half of 2018, Marrakech’s ADR (average daily rate) increased 40.7 per cent to $195. Despite this considerable rate growth, the market also recorded a 12.3 per cent increase in occupancy. In terms of RevPAR (revenue per available room), Marrakech saw a 58 per cent increase to $124.

Thomas Emanuel, business development director for STR, said: “Due to its proximity to markets where security concerns have hindered tourism business, Morocco’s hotel performance has suffered in recent years. As consumer confidence is returning to several of these markets, Morocco’s leisure capital, Marrakech, has seen an increase in demand and hotel operators have managed to capitalise by driving rate growth.”

Another key African destination seeing notable growth is the Cairo & Giza market. In H1 2018, occupancy went up 10.1 per cent, while ADR went up 9.6 per cent, reaching $93.

In some other major African cities, the picture for hotels is less positive. In Cape Town, for example, occupancy dropped 10.8 per cent compared with H1 2017. Occupancy and rates have also fallen in Nairobi and Dar Es Salaam. In Nairobi, occupancy dropped 0.6 per cent, while Dar Es Salaam saw a sharper occupancy decline (-2.1 per cent).

Recent increases in demand have driven occupancy growth as well as rate growth in local currencies for both Lagos and Addis Ababa, but looking in US dollars the scenario is less positive. Lagos’ occupancy was up 10.3 per cent, but its ADR dropped 7.6 per cent in US dollars. Meanwhile, Addis Ababa saw a 7.3 per cent increase in occupancy, but an 11.6 per cent decline in ADR in US dollars.  

Similar Stories

Digital Edition

©Copyright Al Hilal Group 2017. Designed and Developed by Northstar Technologies.