Dubai Hotel Market Review
Dubai has fast become a popular holiday and business destination for international visitors and the hospitality industry is thriving. With this many visitors to the country, the hotel sector has seen a rapid increase of bookings causing hotels to introduce over 1000 additional hotel rooms in Q4 2013 and a further 5,500 additional hotel rooms scheduled for completion in 2014.
The UAE is currently amongst the top five countries in the world for new hotel development. Currently the occupancy rate is steady at a solid 85%, an increase of 3.9% compared to the same period in 2012 across budget and five star hotels.
The vibrant hospitality sector in Dubai continued to outperform other markets in the region by recording strong growth across all key performance indicators. The Dubai hotel market achieved the highest RevPAR since 2008 this year and average daily rates marked a 5.2% increase from 2012 which are still gradually increasing due to high demand, making Dubai one of the strongest performing hotel markets globally.
Dubai International Airport has recently overtaken Heathrow Airport as the busiest airport in the world with over 18 million international passengers passing through the hub in Q1 of 2014 alone, an 11.4% increase from the same period last year. The near completion of Al Maktoum International Airport with a capacity for 160 million annual passengers is set to be the largest airport in the world, providing the country with the ability to accommodate a vast increase in visitors.
With the EXPO 2020 win, the staggering growth in the hotel sector is expected to continue to cater to the anticipated 25 million EXPO 2020 visitors. The expansion of the Dubai hospitality industry is on track to increase capacity to over 160,000 rooms.
Within the past two decades, Dubai has grown to become a leading global business hub, commanding a key position in the global real estate, tourism and business markets. Dubai's modern infrastructure, convenient location, myriad of recreational activities and tolerant social values make it a welcoming and comfortable city to make your home.
Like the rest of the world, Dubai's growth suffered as a result of the economic downturn of 2009 but a new progressive chapter is unfolding, implanting a stronger sense of optimism, confidence and growth in the country, it's people and it's visitors. Local monetary concerns led to a significant restructure of financial policies, which has in turn, created an economy that is now more transparent, accountable and dependable. Dubai's success is based on the vision and commitment of its inspirational leaders, who ingrain an impression of assurance and spirit into the nation.
Source by Prithvi Raj PK