ID :
96945
Sun, 12/27/2009 - 15:03
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Shortlink :
https://oananews.org//node/96945
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Dubai tourism bright as facilities expand
Dubai, Dec 27, 2009 (WAM) - According to the latest benchmark report from research group STR Global, the hospitality industry in Dubai has weathered this year's traditional summer dip better than could have been possibly expected by the doomsayers according to a report in "Gulf News".
While RevPAR (revenue per available room) for hotels in Dubai for the month of August dropped 33.6 per cent over the same month last year (compared to a decline of 21 per cent for hotels across Mena), a closer inspection of the numbers reveals that occupancies at hotels in Dubai are still significantly higher than average for the region.
Dubai hotel occupancy for August stood at 64.1 per cent compared to the Mena average hotel occupancy of 59.2 per cent. To put this into perspective, hotel occupancy in Muscat stood at 38.2 per cent while hotels in Riyadh achieved 38.8 per cent occupancy (Source: STR Global). In mature hospitality markets such as the US, Europe and the Asia- Pacific, occupancies of 65 per cent are the norm.
It is clear that hotels in Dubai have been able to stabilise occupancy levels at 64-66 per cent over the summer at the expense of the average daily rate (ADR), which continued to decline 4-6 per cent month on month.
However, PKF The Consulting House are of the opinion that ADRs are at or close to a bottom and that both ADR and occupancy should grow through December.
Too early
It is too early to predict whether RevPAR will break US$200 by the year's end but this is likely during the first half of 2010, boosted by Dubai Shopping Festival and events such as Gulfood Exhibition and the Dubai International Arabian Horse Championship.
Overall, the fact that RevPAR for Dubai's hotels has declined only 35 per cent over record 2008 figures is remarkable considering that an additional 24-25 per cent of hotel and hotel apartment room supply was added over the same period.
Looking forward to 2010 and beyond, the outlook for recovery and growth in arrivals and guest nights is positive. The twin engines of Dubai's tourism industry, Dubai Department of Tourism and Commerce Marketing (DTCM) and Emirates airline, will help ensure growth in the short term.
DTCM continues to aggressively market Dubai in key generator markets while Emirates continues to grow its fleet and add destinations.
Dubai Airports has predicted that total passenger traffic is expected to grow by an additional 5.5 million (representing 13.5 per cent growth) to a staggering 46 million by 2010.
Growth in arrivals takes into consideration the additional arrivals expected due to the growth of the Dubai's new budget carrier FlyDubai and the opening of Dubai World Central-Al Maktoum International Airport in 2010 second half.
To put this into perspective, industry experts predict that in the long term, Dubai will become the fourth largest aviation hub (from its current rank of sixth) after Hong Kong, London Heathrow and Beijing.
Of course, arrivals do not necessarily translate to increased room nights but promotions such as that between Emirates and The Address, which gave Emirates First and Business Class passengers one free night stay in Dubai, are helping to convert passenger traffic into overnights.
In the near future, Destination Dubai will continue to enjoy the global spotlight, which will undoubtedly boost tourism.
In the spotlight
The successful launch of Dubai Metro created significant international publicity, the first of many landmark events for the city.
Other milestone events over the next year that are expected to substantially boost the image of "Destination Dubai" include the launch of Burj Dubai, the opening of Al Maktoum International Airport in June 2010 and the opening of the Green Line of Dubai's Metro in late 2010.
While RevPAR (revenue per available room) for hotels in Dubai for the month of August dropped 33.6 per cent over the same month last year (compared to a decline of 21 per cent for hotels across Mena), a closer inspection of the numbers reveals that occupancies at hotels in Dubai are still significantly higher than average for the region.
Dubai hotel occupancy for August stood at 64.1 per cent compared to the Mena average hotel occupancy of 59.2 per cent. To put this into perspective, hotel occupancy in Muscat stood at 38.2 per cent while hotels in Riyadh achieved 38.8 per cent occupancy (Source: STR Global). In mature hospitality markets such as the US, Europe and the Asia- Pacific, occupancies of 65 per cent are the norm.
It is clear that hotels in Dubai have been able to stabilise occupancy levels at 64-66 per cent over the summer at the expense of the average daily rate (ADR), which continued to decline 4-6 per cent month on month.
However, PKF The Consulting House are of the opinion that ADRs are at or close to a bottom and that both ADR and occupancy should grow through December.
Too early
It is too early to predict whether RevPAR will break US$200 by the year's end but this is likely during the first half of 2010, boosted by Dubai Shopping Festival and events such as Gulfood Exhibition and the Dubai International Arabian Horse Championship.
Overall, the fact that RevPAR for Dubai's hotels has declined only 35 per cent over record 2008 figures is remarkable considering that an additional 24-25 per cent of hotel and hotel apartment room supply was added over the same period.
Looking forward to 2010 and beyond, the outlook for recovery and growth in arrivals and guest nights is positive. The twin engines of Dubai's tourism industry, Dubai Department of Tourism and Commerce Marketing (DTCM) and Emirates airline, will help ensure growth in the short term.
DTCM continues to aggressively market Dubai in key generator markets while Emirates continues to grow its fleet and add destinations.
Dubai Airports has predicted that total passenger traffic is expected to grow by an additional 5.5 million (representing 13.5 per cent growth) to a staggering 46 million by 2010.
Growth in arrivals takes into consideration the additional arrivals expected due to the growth of the Dubai's new budget carrier FlyDubai and the opening of Dubai World Central-Al Maktoum International Airport in 2010 second half.
To put this into perspective, industry experts predict that in the long term, Dubai will become the fourth largest aviation hub (from its current rank of sixth) after Hong Kong, London Heathrow and Beijing.
Of course, arrivals do not necessarily translate to increased room nights but promotions such as that between Emirates and The Address, which gave Emirates First and Business Class passengers one free night stay in Dubai, are helping to convert passenger traffic into overnights.
In the near future, Destination Dubai will continue to enjoy the global spotlight, which will undoubtedly boost tourism.
In the spotlight
The successful launch of Dubai Metro created significant international publicity, the first of many landmark events for the city.
Other milestone events over the next year that are expected to substantially boost the image of "Destination Dubai" include the launch of Burj Dubai, the opening of Al Maktoum International Airport in June 2010 and the opening of the Green Line of Dubai's Metro in late 2010.
