More than 2,500 hotels rooms were opened in Dubai in the first-half of 2019, with nearly half of them in the luxury segment, says a new report.
According to Colliers International, the Dubai market’s supply is expected to grow an average rate of 12 per cent until FY 2020, in the run up to Expo 2020.
Christopher Lund, head of hotels for Mena at Colliers International, said hotels are setting ambitious development goals in order to open in time for Expo 2020, what is expected to be the largest attraction in the region.
“Dubai was recognised as the leading MICE (Meetings, incentives, conferencing, exhibitions) destination in the Middle East and Africa region by Cvent, with Abu Dhabi in 4th position. Dubai’s ease of access and excellent supporting facilities are key for attracting MICE events,” Lund said.
Latest figures by the Dubai’s Department of Tourism and Commerce Marketing said the emirate received 8.36 million international overnight visitors in the first-half of 2019, a growth of three per cent in tourism volume.
Increased supply of new keys across the UAE in the first-half of 2019 dented average daily rates. Dubai saw an increase of 13 per cent in new rooms in H1 followed by 11 per cent in Sharjah, seven per cent in Abu Dhabi and 12 per cent in Ras Al Khaimah.
Colliers data showed that occupancy fell across the UAE in the first-half with highest fall recorded in Fujairah at 13 per cent followed by 10 per cent in Sharjah, five per cent in Abu Dhabi, two per cent in Ras Al Khaimah and one per cent in Dubai. Barring the UAE capital, the UAE’s branded hotels became more affordable with average daily rates falling 11 per cent in Dubai, Sharjah, RAK and Fujairah. But room rates in Abu Dhabi rose four per cent.
The study forecast that the total branded hotel supply in the UAE will increase from 92,800 in the first-half of 2019 to 98,800 at the end of this year. The supply will expand at 11.6 per cent next year, taking the number of total hotel rooms to 110,300 and another 12.3 per cent increase in supply in FY 2021 to 123,900.
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