Oil prices and MENA development: The effects of declining oil prices have hit a potentially critical point for tourism in the Middle East, according to a new report from Ernst & Young and reported in Arabian Business. “The extra supply that is slated to enter the MENA hospitality market in 2015, coupled with unstable oil price, may have an effect on the industry’s growth rates over the coming year,” EY MENA Head of Transaction Real Estate Yousef Wahbah said in the report.
The next six to nine months will be a “critical period” for the Middle East tourism sector, to see just how much hotel transactions and development will be affected by low oil prices, according to EY.
Another contributing factor to a slowdown in the MENA region, according to the report, is the unstable political situation in Russia. “The political situation and the weakening of the Russian ruble has led to a decrease of inbound travelers from Russia and some of the eastern European countries, which drives significant demand in (Dubai),” Wahbah said.
Ahh, the differences: Stories today from HNN’s Terence Baker and Alicia Hoisington pinpoint some critical differences between how European and U.S. hoteliers view hotel operating models. On the European front, Baker reports from the Hotel Operating Agreements Conference that owners and brand executives are clashing over the advantages brands bring to the table. While in the U.S., brand presidents at last week’s Hunter Hotel Conference continue to laud the benefits of robust brand systems (even if they do question the proliferation of some of the most recent brand additions).
Airbnb enforcers: A specialized task force of investigators in New York City is hitting the streets to combat problems associated with short-term apartment rentals in the city, according to the Associated Press. This group, which includes building and fire inspectors, police, lawyers, tax specialists and more have worked for the past nine years citing violations related to short-term rentals, and their activities may be set to get a boost in the face of Airbnb and other short-term rental sites growing in popularity. Some area lawmakers are calling for this special task force to get more manpower in order to “go beyond answering complaints to scour the Web for suspect listings,” according to the AP story. If the measure passes, the city’s enforcement squad will grow from 11 to 36 employees. Airbnb executives, meanwhile, are challenging local laws in hopes of exempting people who are renting their own space via the shared-lodging site.
Meanwhile, in the U.K.: Last week London joined the list of cities embracing Airbnb. Parliament passed legislation allowing London residents to share their homes without permission from local authorities. Matt Hancock, U.K. minister for business, spoke out in support of the legislation, saying that “platforms like Airbnb are empowering a generation of innovators and everyday entrepreneurs. … We will back them all the way and continue to remove barriers to their success. This new law will unlock opportunities for this dynamic, growing sector and cements our commitment to be the world leader for the sharing economy.”
Try this wake-up call: Spring breakers at the Holiday Inn Resort Panama City Beach in Panama City, Florida, aren’t getting much of a chance to sleep in and nurse their hangovers. Every morning the hotel blasts “The Circle of Life” from The Lion King at full volume—a spring break tradition started back in 2012, according to USA Today’s Road Warrior Voices. What makes this story great: Guests love it. Every morning they assemble on their balconies and sing along. The hotel reportedly receives hundreds of calls from potential spring breakers asking whether the tradition will continue.
Compiled by Stephanie Ricca.