Middle East hotel projects under contract up, Saudi Arabia has most rooms under construction

Above, construction cranes outside the Grand Mosque in Makkah. Hotels are being built in Makkah to accommodate the surge in number of pilgrims. (Reuters)
Updated 13 September 2017

Middle East hotel projects under contract up, Saudi Arabia has most rooms under construction

DUBAI: Optimism runs high among Middle East hospitality operators with 583 hotel projects under contract as of August, global hotel data STR said in its latest Pipeline Report.
STR defines hotels under contract as projects in the construction, final planning and planning stages but including projects in the unconfirmed stage.
The 583 hotel projects under contract represent a 5.4 percent increase from a year ago, with 309 hotels now under construction involving 98,027 rooms. The number of rooms was 17.2 percent higher in year-over-year comparison.
Among the Middle East countries, Saudi Arabia had the most number of rooms in construction at 40,020 involving 89 projects; the UAE with 35,050 rooms in 121 projects and Qatar with 9,627 rooms in 41 projects.
JLL earlier said among the hotel properties under construction in Saudi Arabia include the Double Tree by Hilton in Makkah involving 668 keys; the Staybridge Suites Her’a Dyafa Center in Jeddah with 200 keys; the Movenpick Hotel & Apartments Al Thalia Jeddah with 164 rooms; the Somerset Corniche in Jeddah with 135 rooms and the Hyatt House Sari Street also in Jeddah with 104 rooms.
Meanwhile, STR said that 208 hotel projects were under contract in Africa, with 28,620 rooms from 160 hotels now under construction as of August, 5.6 percent lower compared with the previous year.
Among the African countries that reported more than 4,000 rooms under construction are Angola with 4,451 rooms (32 projects) and Egypt with 4,169 rooms from 12 projects.

Economists fear a US recession in 2021

Updated 36 min 16 sec ago

Economists fear a US recession in 2021

  • Trump’s higher budget deficits ‘might dampen the economy’

WASHINGTON: A number of US business economists appear sufficiently concerned about the risks of some of President Donald Trump’s economic policies that they expect a recession in the US by the end of 2021.

Thirty-four percent of economists surveyed by the National Association for Business Economics, in a report being released Monday, said they believe a slowing economy will tip into recession in 2021. 

That’s up from 25 percent in a survey taken in February. Only 2 percent of those polled expect a recession to begin this year, while 38 percent predict that it will occur in 2020.

Trump, however, has dismissed concerns about a recession, offering an optimistic outlook for the economy after last week’s steep drop in the financial markets and saying on Sunday, “I don’t think we’re having a recession.” A strong economy is key to the Republican president’s 2020 reelection prospects.

The economists have previously expressed concern that Trump’s tariffs and higher budget deficits could eventually dampen the economy.

The Trump administration has imposed tariffs on goods from many key US trading partners, from China and Europe to Mexico and Canada. 

Officials maintain that the tariffs, which are taxes on imports, will help the administration gain more favorable terms of trade. But US trading partners have simply retaliated with tariffs of their own.

Trade between the US and China, the two biggest global economies, has plunged. Trump decided last Wednesday to postpone until Dec. 15 tariffs on about 60 percent of an additional $300 billion of Chinese imports, granting a reprieve from a planned move that would have extended duties to nearly everything the US buys from China.

The financial markets last week signaled the possibility of a US recession, adding to concerns over the ongoing trade tensions and word from Britain and Germany that their economies are shrinking.

The economists surveyed by the NABE were skeptical about prospects for success of the latest round of US-China trade negotiations. Only 5 percent predicted that a comprehensive trade deal would result, 64 percent suggested a superficial agreement was possible and nearly 25 percent expected nothing to be agreed upon by the two countries.

The 226 respondents, who work mainly for corporations and trade associations, were surveyed between July 14 and Aug. 1. That was before the White House announced 10 percent tariffs on the additional $300 billion of Chinese imports, the Chinese currency dipped below the seven-yuan-to-$1 level for the first time in 11 years and the Trump administration formally labeled China a currency manipulator.

As a whole, the business economists’ recent responses have represented a rebuke of the Trump administration’s overall approach to the economy.

Still, for now, most economic signs appear solid. Employers are adding jobs at a steady pace, the unemployment rate remains near a 50-year low and consumers are optimistic. US retail sales figures out last Thursday showed that they jumped in July by the most in four months.