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Wednesday, Aug 24, 2016
Hospitality Rush
Type : Hospitality Trend   |  Source : Property News24/08/16

Hospitality Rush

International and regional hotel groups are expanding in the UAE as Dubai has announced plans to boost its tourist’s numbers to 20 million visitors per year by 2020. Or a growth of 7-9 per cent annually, Last year Dubai saw 14.2 million overnight visitors, a 7.5 per cent climb over the previous year. This year he emirate expects to receive 15 million overnight visitors, according to a top tourist official.

The First quarter saw 4.1 million arrivals in Dubai, reflecting a 5.1 per cent rise year on year. The highest footfall increase came from india and the GCC, according to the department of Tourism and Commerce Marketing (DTCM). Visitors from Saudi Arabia grew 14 per cent to 476000. Where as those from India rose 17 per cent to 46700.

Driven by the UAE’s reputation as a business and leisure hub, rising tourist numbers and extensive infrastructure development, major hoteliers are confident about the emirate’s hospitality. Prespects. According to the DtCM. Dubai has 676 hospitality establishments as of march with 98,949 hotel and hotel apartment rooms. Dubai targets 138,000 rooms by end of 2018.

UAE hotels recorded the highest occupancy rate in the Middle East last year, despite feeling the effects of the global economic slow-down, low oil prices, currency fluctuations and geo-political unrest. According to research firm STR Global, hotels in the Middle East reported negative year-end results last year. Compared with 2014 figures, the Middle East reported a 2 per cent de-crease in occupancy to 67.4 per cent, while average daily rate (ADR) was down 2.6 per cent to $192.82 (Dh708), and the revenue per available room dropped 4.6 per cent to $129.98. The UAE also reported decreases in each of the three key performance metrics, following a trend in the rest of the Middle East, although it recorded the region's highest occupancy at 74.8 per cent. The UAE's ADR declined by 6.2 per cent to Dh705.75 and revenue per available room (RevPAR) fell by 6.7 per cent to Dh528.19. The country's supply grew 6.2 per cent last year, out-pacing demand growth of 5.6, which resulted in a decline in occupancy, ADR and RevPAR. Dubai, however recorded the highest ADR in the first quarter among major markets around the world, according to STR. This marked the 12th consecutive year that Dubai has led the market. Even with a 10.1 per cent drop in year-on-year comparisons, Dubai's ADR for the first quarter was $234.88. Only three other major markets finished the quarter with ADR levels above $200 in constant currency Paris, New York and Singapore. Hoteliers are therefore confident Dubai's hospitality sector will pick up soon amid the recent challenges.

 

 

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Author : Gulf News - Property Weekly News PW 1 & 8
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