Included in this roundup of news from the MEA region; coronavirus reshaping Africa; Abu Dhabi data; and more.
Each week, Hotel News Now features a news roundup from a different global region. Today’s compilation focuses on Middle East/Africa.
COVID-19 could reshape Africa’s economies
While the coronavirus and its corresponding economic downturn have had a devastating impact across Africa, the pandemic could afford countries across the continent the chance to reset their economies, Bloomberg reports.
The new Africa Risk-Reward Index report from Control Risks and NKC African Economics states that gross domestic product will contract between 6% and 10% across the continent this year, but “COVID-19 has given new impetus for positive reforms.
An early look at Abu Dhabi performance
Preliminary data from HNN’s parent company STR shows Abu Dhabi, United Arab Emirates, saw revenue per available room fall 9.5% year over year to 193.22 Emirati dirhams ($52.61) in August, as occupancy fell 6.4% to 62.9% and average daily rate was down 3.4% to 307.23 dirhams ($83.65).
Analysts with STR noted there are early recovery signs within the market, with each of the key metrics increasing compared to June. Occupancy and RevPAR were at their highest levels since the onset of the pandemic, and ADR was “in line with the short-term August average.”
South Africa sees worst decline in a century
The Wall Street Journal reports South Africa’s economy declined 51% in the second quarter, the steepest quarterly drop “in at least a century and one of the steepest contractions recorded by any major economy during the coronavirus pandemic.”
“The restrictions managed to slow the spread of the coronavirus in South Africa, but infections increased after large parts of the economy were allowed to reopen in July,” the newspaper reports. “As of Monday night, the country of 60 million had recorded 639,362 coronavirus cases—the seventh-highest caseload globally—and 15,004 deaths.”
Compiled by Sean McCracken.