Dubai hoteliers continue to add new rooms to accommodate rising visitor numbers. Sarah Dea / The National
Dubai hoteliers continue to add new rooms to accommodate rising visitor numbers. Sarah Dea / The National

Overnight guests in Dubai hotels rise 9.3%



Dubai attracted 8.2 million international overnight visitors during the first seven months of the year even as hotel occupancy dipped and the global economy slowed down.

That represents an increase of 9.3 per cent in visitor numbers over the same period last year, said Issam Kazim, the chief executive of Dubai’s Department for Tourism and Commerce Marketing.

The top source markets included India, Saudi Arabia, Oman, Germany, Iran and China.

Hoteliers continued to add new rooms to accommodate rising visitor numbers. Between January and July, 11 properties opened in Dubai, adding 2,600 rooms.

Among them were the 186-room Flora Al Barsha Hotel and 126-room Hyatt Place Dubai at Baniyas Square. At the end of July, there were 95,000 hotel and hotel apartment rooms in Dubai.

“This increase has inevitably triggered talks of oversupply, and while we at Dubai Tourism do not share this view, it does highlight an important view to strike a balance between supply and demand, ensuring that Dubai dictates a high occupancy rate [and] room rates that are neither too high nor too low,” he said.

“We are continuously working with all private and public sector departments to ensure Dubai’s inventory increases proportionate to our tourism needs.”

Despite the uncertainties of the global economy, Dubai’s key performance indicators are relatively stable, said Mr Kazim.

Last month, non-oil private sector firms in the UAE placed new orders thanks to strong domestic demands, according to the Emirates NBD UAE Purchasing Managers’ Index.

However, exports slowed and inflation rose.

During the first seven months of the year, hotel occupancy in Dubai was 77 per cent with the average daily room rate at Dh585. A key measure of hotel profitability, revenue per available room (revpar), was Dh450. The comparative figures for last year were unavailable from the tourism department.

“These are among the highest rates in the world, far outperforming other metro markets,” Mr Kazim said.

The hotel occupancy rate has dipped 0.9 per cent year-to-date until September 19 compared to the same period last year, according to STR Global. The average daily rate has declined 8.1 per cent as supply rose 6.3 per cent compared to demand at 5.3 per cent.

As the local market corrects the heavy reliance on luxury properties with the construction of more budget and midscale hotels, the average revpar in Dubai has declined.

The uncertainty in the global economy and currency weakness among key source markets such as Russia and the euro zone has had an impact on the tourism market.

Mr Kazim was talking at the three-day Hotel Show in Dubai. Demand is expected to outstrip supply of hotel rooms in Dubai in the run-up to 2020, pulling down occupancy rates from around 80 per cent, according to analysts.

Hotel operators have taken a defensive position, maintaining the occupancy rates broadly but at the cost of average daily rates, said Martin Cooper, an analyst with the consultancy Deloitte. “Occupancies around 73 to 79 per cent [would] be the new normal,” he said.

High land prices, especially in the Downtown and Business Bay areas and a lack of leisure attractions are among the challenges that hotel developers and operators face in Dubai. Once considered a shopping destination, Dubai has become more expensive to shop for many consumer goods because of the strength of the dollar, according to Philip Shepherd, an analyst with PwC.

“Attractions are limited to desert safaris, beaches and some waterparks, currently what we are missing are attractions,” he said. “I don’t think Dubai can do it on its own, the emirates need to do it together.”

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PSA DUBAI WORLD SERIES FINALS LINE-UP

Men’s:
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Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)

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Developer: Treyarch, Raven Software
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Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
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The five new places of worship

Church of South Indian Parish

St Andrew's Church Mussaffah branch

St Andrew's Church Al Ain branch

St John's Baptist Church, Ruwais

Church of the Virgin Mary and St Paul the Apostle, Ruwais

 

If you go

The flights
Emirates (www.emirates.com) and Etihad (www.etihad.com) both fly direct to Bengaluru, with return fares from Dh 1240. From Bengaluru airport, Coorg is a five-hour drive by car.

The hotels
The Tamara (www.thetamara.com) is located inside a working coffee plantation and offers individual villas with sprawling views of the hills (tariff from Dh1,300, including taxes and breakfast).

When to go
Coorg is an all-year destination, with the peak season for travel extending from the cooler months between October and March.

Getting there

The flights

Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.

The stay

Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net 

Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama

Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com

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Brett Anderson

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The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

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The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

Fire and Fury
By Michael Wolff,
Henry Holt

The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now


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