There is a mix of both types of news in Dubai Hotels’ market, one is that hotel industry is struggling hard to shake off the effects of global economic recession and the rest of the news is regional hoteliers are recognizing that several new hotels are coming with vast numbers of rooms. It seems an opportunity as compared to a threat; Dubai hotel industry is still strong to welcome new tourists in the region.
During the official tour of The Hotel Show, the Middle East’s leading dedicated trade event for the hospitality and leisure sector, Khalid bin Sulayem, Director General at the Dubai Government’s, Tourism & Commerce Marketing Department commented: “There are between 16,000 and 20,000 hotel rooms to enter the Dubai market by the end of the year, which will contribute to producing lower room rates and attracting more visitors to Dubai.”
Few posts back, we have compared investment rates in different GCC countries which they are going to invest in hospitality sector. One should also keep in mind that all the projects which are already commenced in the region; they are reminders of the happy and healthy economy. While hotel investors are now seriously looking at the critical situation of investment.
If the region is being competitive within its own hospitality sector or to compete globally, RevPar rates should be competitive. This thing can benefit hotel revenues by increasing occupancies but at lower rates. From another point of view, much increase in the hotel rooms can make the region to get a tough competition. The existing hotels will have to work hard to grab the customers at lower rates but at more quality services and the emerging hotels will have to work hard to mark their position. Therefore, the decision of launching new hotels seems to be quite critical. Let’s see what it brings in real to all of us.
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