Thursday 21 June 2018

Matthew Green

UAE hotels post higher occupancy rates in Q1

Dubai, May 5, 2013

Hotels saw rising occupancy rates rising across key markets in Dubai, Abu Dhabi and Ras Al Khaimah during the first quarter (Q1) of the year, said an industry expert.

Hotels in the UAE capital recorded double digit growth in revenue and occupancy figures, building on a 2012 performance that saw a 13 per cent growth in total guest numbers, added Matthew Green, head of Research UAE, CBRE Middle East, a real estate specialist.

Dubai witnessed further growth in tourist arrivals recorded during the first three months, building on the 9 per cent rise achieved last year.

Whilst still an emerging tourism destination, Ras Al Khaimah is starting to see a steady rise in its hotel keys, and some very impressive growth in tourist arrivals, Green said.

After attracting over one million visitors in 2012, Ras Al Khaimah is now aiming for 1.2 million during 2013, he noted.

Over the past decade, the country has invested heavily into its infrastructure facilities and its tourism marketing capability, with Dubai leading the way in establishing the emirates as a globally recognised holiday destination and one of the most important aviation hubs on the planet, Green noted.

The recent opening of the first Dubai Tourism & Commerce Marketing (DTCM) representative office in Brazil, highlights a continued effort by the government to raise global awareness as part of their strategy to attract visitors from burgeoning tourism markets in South America and beyond.

Together, the UAE’s airports handled over 80 million customers during 2012, with the lion’s share passing through Dubai International Airport (DXB) which registered 71 per cent of all passenger movements.

Passenger numbers have continued to rise during 2013, with Dubai and Abu Dhabi seeing double digit growth during the first quarter.  DXB is projected to see over 65 million passengers this year and 98 million by 2020.

Green said that significant investment has already been earmarked by the Dubai Government for further expansion plans, following quickly on the heels of the recently completed A380 concourse at DXB.

Some of this new investment is likely to be directed towards the new Maktoum International Airport in Jebel Ali, a facility which has been integral to the 2020 Expo bid, according to Green.

“The UAE currently has over 95,000 completed hotel keys, a figure which could expand by 30 per cent over the next five years with close to 30,000 keys in varying stages of construction and planning,” Green said.

“Dubai’s hotel stock dwarfs the rest of the region with nearly 60,000 keys operational, although other markets such as Doha are slowly catching up.  Despite such significant supply, Dubai posted the best performance of any Middle East city with average occupancy rates of 76 per cent during 2012 and one of the best ADR performances of any global market.”

“Although the regions sizeable hotel development pipeline should be monitored with some caution, the short term outlook for the sector looks to be positive with most key local markets recording growth during the first quarter,” Green concluded. – TradeArabia News Service

Tags: UAE | Dubai | hotels | Ras Al Khaimah | Occupancy Rates | CBRE |

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