- Middle East hotel markets typically slow during Ramadan, with the Holy Month overlapping with the high season due to its annual shift.
- Despite the general slowdown, pilgrimage to Makkah and Medina for Umrah boosts market occupancy during Ramadan.
Middle Eastern hotel markets traditionally experience a slowdown during Ramadan, the Islamic Holy Month of fasting, prayer, reflection, and community. The pace of life changes to accommodate participants’ fasts, leading to decreased travel activities. However, this year, Ramadan coincides with the Middle East’s high tourist season due to the Holy Month’s annual shift on the lunar calendar.
In the leadup to Ramadan, occupancy growth in Middle Eastern hotels didn’t significantly increase. In Riyadh, occupancy increased slightly due to the start of Saudi school holidays. However, occupancy rates in other Middle Eastern capitals remained the same, indicating that there wasn’t a rush before the Holy Month.
Travel patterns also shifted in the days leading up to Ramadan due to the uncertain start dates, which depend on the sighting of the crescent moon in different countries. This uncertainty causes travel to slow down before the expected start of Ramadan.
Capital markets, often corporate hubs, tend to report larger occupancy declines during Ramadan. On the other hand, markets with larger international or leisure demand, such as Dubai or Abu Dhabi, maintain better occupancy as non-Muslims may still choose to travel to these destinations.
However, there is a significant exception to the Ramadan demand slowdown. Pilgrims flock to Makkah and Medina to complete Umrah during this holy month, leading to a substantial increase in market occupancy.
Looking ahead, data on booked occupancy suggests that Makkah will have the highest occupancy, followed by Dubai and Abu Dhabi. Most markets expect occupancy at or just ahead of 2024 levels for the remaining days that overlap with the 2024 and 2025 holidays. This could indicate an increase in international inbound demand in the Middle East, showing that the region’s efforts to boost tourism and grow as an international destination are paying off.
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