3) What risk management or contingency protocols have you activated?
As an advisory firm, our focus has been on strengthening scenario planning frameworks rather than implementing operational contingency protocols in the traditional sense. In practice, this means working closely with clients to stress-test assumptions around demand recovery timelines, air connectivity, financing conditions and project sequencing under different scenarios. That allows investors and developers to maintain momentum on long-term strategies while remaining responsive to short-term shifts in market visibility. We are also supporting clients through portfolio-level reviews, valuation sensitivity analysis and feasibility reassessments where appropriate, particularly for projects dependent on near-term ramp-up performance. Importantly, across much of the region the hospitality development pipeline is anchored in long-term national tourism strategies. As a result, contingency planning is typically focused on adjusting timing and phasing rather than fundamentally changing investment direction.

4) To what extent are you altering investment or expansion plans in the current climate?
At this stage, we are not seeing evidence of widespread changes to long-term hospitality investment strategies across the region. What we are observing instead is a recalibration of timelines and underwriting assumptions, particularly for projects that depend on near-term performance ramp-up. Hospitality development across the Gulf is typically anchored in long-term national tourism strategies and infrastructure-led growth, which makes it less sensitive to short-term disruption cycles than many other markets. As a result, investors are generally focusing on sequencing and phasing decisions rather than cancelling or withdrawing from projects. It is also worth noting that global hotel investment activity had already begun strengthening prior to the current situation, with investment volumes in 2025 approximately 22% higher than the 2023 cycle low. That broader recovery in sector liquidity continues to support confidence in well-positioned markets across the region. Overall, what we are seeing is a temporary extension of decision timelines rather than a structural shift in capital allocation.

5) How do you expect demand to grow in the region, and on what basis ?
Recovery timelines in hospitality markets across the Gulf are closely linked to the pace at which aviation capacity and traveller confidence normalise, as these remain the primary drivers of international demand. Based on previous cycles in the region, short-term disruption typically affects immediate booking windows rather than long-term destination positioning. If conditions stabilise within the current trading period, the impact is likely to be concentrated around the March and April high season rather than reflected across the full year. Markets such as Dubai entered this period from a position of strength, with approximately 19.6 million international overnight visitors in 2025, occupancy levels around 80%, and January-February 2026 demand already tracking about 3% ahead of the same period last year. These indicators provide an important baseline supporting recovery momentum once visibility improves. Over the past two decades, we have consistently observed that recovery in travel demand across the region has often been stronger than the initial slowdown once conditions stabilise, particularly in markets with strong connectivity and diversified demand drivers.

6) Do you see any long-term structural shifts in how the hospitality ecosystem operates in the Middle East?
Yes, but I would describe them more as an acceleration of existing structural trends than a reset caused by a single crisis. Across the Middle East, the hospitality ecosystem has already been evolving toward greater source-market diversification, stronger domestic and regional demand, and more mixed-use destination development that combines hospitality, retail, entertainment, wellness and branded residential components. Periods of disruption tend to reinforce the importance of diversification. We also expect continued emphasis on aviation connectivity, flexible business models and broader demand segmentation. Markets that rely on multiple demand drivers – including leisure, corporate, domestic travel, religious tourism and long-stay segments – are generally better positioned to absorb short-term shocks. So, the long-term shift is less about moving away from the region’s growth model and more about making it more resilient. In that sense, diversification is no longer just a growth strategy; it is increasingly a risk-management strategy as well.

7) What lessons have you taken from navigating this period so far?
One of the most important lessons is the value of data-led decision-making during periods of uncertainty. Investors and operators are increasingly relying on scenario modelling rather than single-point forecasts to assess timing, risk exposure and project sequencing. Another key lesson is the strength of coordination across the tourism ecosystem in the region. Close alignment between aviation authorities, tourism bodies, regulators and private-sector stakeholders plays an important role in maintaining operational continuity and supporting traveller confidence during periods of disruption. We are also seeing how critical diversification has become — both in terms of source markets and demand segments. Destinations supported by a mix of leisure, corporate, regional and domestic travel are generally better positioned to absorb short-term shocks without altering long-term strategy.

Perhaps most importantly, previous cycles across the Middle East have consistently shown that tourism demand tends to recover quickly once conditions stabilise, and in many cases recovery has been stronger than the initial slowdown. That pattern continues to underpin confidence in the region’s long-term hospitality outlook.

8). What is the single biggest challenge and the single biggest opportunity you see emerging?
The biggest challenge at the moment is short-term visibility around demand timing, particularly during peak trading windows that play an important role in annual performance across the region’s gateway markets. Hospitality investment decisions are long-term by nature, but temporary uncertainty can influence the pace at which projects move from planning to execution. At the same time, the biggest opportunity is the continued strengthening of diversification across the Middle East and Africa’s tourism ecosystem. We are seeing growing momentum in intra-regional travel, the expanding role of regional airlines, and increased investor attention on secondary hubs and emerging destinations across Africa where domestic and regional demand provide a stable foundation for hospitality growth. This is particularly important because domestic and regional travel tends to support continuity during periods when long-haul demand becomes less predictable. As a result, markets that combine strong connectivity with diversified demand sources are often able to recover more quickly and sustain investment momentum. Historically, these structural factors – connectivity, diversification and coordinated tourism strategies – have played a central role in supporting recovery across the region, and they continue to shape long-term confidence in the Middle East and Africa’s hospitality outlook.