Published by Global Banking and Finance Review
Posted on April 29, 2025
By Manya Saini
DUBAI (Reuters) -Hotel group Accor's localised supply chains should cushion the impact of U.S. President Donald Trump's tariffs, its CEO for the Middle East, Africa and Asia-Pacific said, adding he expected travel demand to stay robust in his region.
Businesses across multiple industries are hiking prices, revising previous financial guidance and warning of growing uncertainty as Trump's trade war pushes up costs, disrupts supply chains and stirs concerns about the global economy.
"We're very, very localised... in terms of profit protection, we have everything in place to react very quickly for that," Accor's Duncun O'Rourke told Reuters in an interview on the sidelines of the Arabian Travel Market fair in Dubai.
He also said the company remained bullish on travel demand in the Middle-East and continued growth in Saudi Arabia,
Gulf countries in general are seeking to capture a larger share of the global travel industry, including business travel, while Saudi Arabia has invested billions into diversifying the economy from hydrocarbons, including pouring money into tourism.
"Dubai and the European Union were very strong last year and we actually see huge growth going forward," O'Rourke said.
Earlier this month, Accor, Europe's biggest hotel group by portfolio, reported a larger-than-expected rise in first-quarter revenue, citing sustained global demand in the hospitality sector supported by its geographical diversification.
Others in the travel industry appear less confident.
Several leading U.S. airlines have pulled their forecasts for 2025.
(Reporting by Manya Saini in Dubai; editing by Barbara Lewis)
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