How Ramadan Drives Exceptional Shifts In Middle East Hotel Markets And Travel Dynamics

Thursday, March 13, 2025

Hotel markets in the Middle East often experience a slowdown during Ramadan, as the Holy Month shifts each year, overlapping with the peak season. However, the influx of pilgrims traveling to Makkah and Medina for Umrah helps sustain market occupancy during this period.

Hotel markets in the Middle East usually experience a dip during Ramadan, the Islamic Holy Month focused on fasting, prayer, reflection, and community. The slower pace of life during this time leads to reduced travel activities. However, this year, the shift in the lunar calendar means Ramadan overlaps with the region’s peak tourist season.

Leading up to Ramadan, hotel occupancy in the Middle East saw only modest growth. Riyadh experienced a slight increase, mainly due to the start of Saudi school holidays, while other major cities saw stable occupancy rates, suggesting little pre-Ramadan surge in demand.

Travel trends also shifted in the days before Ramadan as the start date remained uncertain, depending on the sighting of the crescent moon in different countries. This created a temporary slowdown in travel as the Holy Month’s exact beginning was awaited.

Corporate-centric markets, such as capital cities, typically report a larger drop in occupancy during Ramadan. In contrast, markets with strong international or leisure demand, like Dubai and Abu Dhabi, tend to fare better, as non-Muslim travelers still visit these destinations.

Despite the typical slowdown in demand during Ramadan, a notable exception exists. The influx of pilgrims traveling to Makkah and Medina for Umrah results in a marked rise in market occupancy during this sacred month.

Looking ahead, occupancy data indicates that Makkah will lead in occupancy rates, followed by Dubai and Abu Dhabi. Many markets anticipate occupancy to be at or slightly higher than 2024 levels during the remaining days that overlap with the 2024 and 2025 holidays. This trend could signal a rise in international inbound demand for the Middle East, reflecting the region’s successful initiatives to enhance tourism and solidify its position as a global destination.

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