By Manya Saini
DUBAI () – The localized supply chains of hotel group Accor are likely to mitigate the effects of U.S. President Donald Trump’s tariffs, according to the company’s CEO for the Middle East, Africa, and Asia-Pacific. He also expressed confidence that travel demand would remain strong in this area.
Companies spanning various sectors are raising their prices, updating their earlier financial forecasts, and expressing rising unease due to Trump’s trade conflict, which is increasing expenses, disrupting supply chains, and stirring worries about the worldwide 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 an interview on the sidelines of the Arabian Travel Market fair in Dubai.
He additionally mentioned that the firm was still optimistic about travel demand in the Middle East and anticipated ongoing expansion in Saudi Arabia.
In general, Gulf nations aim to seize a bigger portion of the worldwide travel sector, encompassing business trips as well. Meanwhile, Saudi Arabia has committed substantial funds toward reducing economic dependence on oil by boosting investments in tourism.
“Both Dubai and the European Union showed remarkable strength last year, and we anticipate significant expansion moving ahead,” stated O’Rourke.
Earlier this month, Accor, which is the largest European hotel company based on its portfolio, announced a higher-than-predicted increase in their first-quarter revenues. They attributed this growth to strong worldwide demand within the hospitality industry, bolstered by their broad geographic spread.
Other players in the travel sector seem more doubtful.
A number of major U.S. airlines have withdrawn their predictions for 2025.
(Reported by Manya Saini in Dubai; edited by Barbara Lewis)
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