Because of the pandemic, the industry analysts have revised the forecast of occupancy and rate for this year and the next years. The pandemic has badly affected the tourism and economy of the regions of GCC. It has also affected the hotel sectors and it will require some time to reduce the impact and effect of COVID-19 for the recovery of the loss of hotel sectors. Although there are uncertainties but there are some certain factors that will have a long term impact on tourism and hospitality in 2020 and some more years beyond 2020.
Some airlines, from the Middle East and some other markets, are not resuming the commercial airports for operational activities. The airport activity is operational for only some repatriation trips. So, we can say that the activity is very limited until now.
Due to pandemic, Governments have extended the bills of healthcare. In addition to this, the government has also extended financial support. This is done to support the economy and local businesses. But these amendments will affect the budgets of the government. That will eventually affect the investment priorities in the future. The growth of the economy in Saudi Arabia and some other GCC countries will reduce because of the lower prices of oil. Growth in these counties can also be decreased due to low output production. Large corporations and the market industries who are spending budget are badly affected and there is a drastic change in their policies related to budgets. Moreover, the confidence of the guests has been decreased, and it will surely require some time for the companies and industry to fulfill the needs and expectations of the coming guests.
Several companies have made significant assumptions which will control the occupancy and the average rates from 2020 to 2024. The prices of oil and gas are expected to recover in the next few months say that in the next 12 months. The regional and local events will be facilitated and supported by respected governments. The outbreak and the outspread of Covid-19 will be continuously governed and monitored by the governments. The vaccines and the treatments of COVID-19 are expected to be available in the next few months, more specifically in the next 12 months. The ban on regional and international travel will be ended in the last months of 2020. The confidence of the travelers and the guests will be improved. By the end of 2020, most of the closed hotels will be opened. In addition to this those hotels which were converted and donated for the facilities of quarantine will be resumed to the normal activities. Moreover, Dubai Expo is expected to be held between October 2021 to March 2022. And World Cup 2022 is scheduled to take place in Qatar. By the end of 2020, the traveling activities from Qatar to other GCC cities will be resumed. Excluding the increased demand, it will still require almost 4 years for the complete recovery. The owners of different Brands and Hotels will be successfully implementing the new safety and health requirements and this will help them to fulfill the funding demands and requirements. These mentioned predictions and assumptions do not include any abnormal events in the future.