Middle East strife takes toll on tourism

Rising tensions in the Middle East have led to a decline in hotel occupancy rates in Egypt, the Lebanon, Jordan and Syria, according to a study by consulting firm Andersen.

Occupancy rates in the first half of the year declined in 18 of the 28 markets tracked by Andersen in its Hotel Benchmark Survey. Hardest hit were the Egyptian markets, which saw a decline in group and tour operator business. Only the resort of Sharm El Sheikh recorded an increase in occupancy.

Hotels in Beirut also had a tough time, because of continuing fighting between the Israelis and Palestinians on its doorstep. But a banking conference in April and the fact that comparisons were against a particularly weak first half of 2000 - when occupancy levels slumped because of Israeli air raids - helped the overall picture in the country, said Andersen.

According to Andersen, hotels in Syria and Jordan suffered similar problems.

However, the rising price of crude oil fuelled development in the Gulf states; and Dubai continued to be the economic and tourist hub for the region.

Source: Caterer & Hotelkeeper magazine, 9-15 August 2001