Prices in Dubai hotels may increase by 30%
Hoteliers in Dubai are expecting a recovery in winter demand for hotel accommodation. It is expected that prices could rise by up to 30 per cent on the back of a large number of bookings and major international events.
Hotels are hoping to return to pre-pandemic performance thanks to increased tourist traffic from India and Europe, as well as renewed travel from a number of African countries such as Nigeria and Kenya.
Boosting the hotel industry’s performance at the end of the year should be major international exhibitions and forums such as Gitex 2023, ADIPEC and COP28, whose participants have already started booking rooms.
According to experts, Dubai hotels could see accommodation prices rise by 20-23 per cent, while the northern emirates could see an increase of 15-20 per cent. Sheikh Zayed Highway, Business Bay, Downtown, Downtown, JVC, JBR, JLT and The Palm Jumeirah will be the most favoured areas for accommodation.
Hotels near the Expo City Dubai area (Dubai Investment Park, Al Furjan and Jumeirah Golf Estate) could raise prices by up to 30 per cent during the COP28 international climate summit, which will host around 70,000 participants.
As previously reported, by the end of 2023 in the United Arab Emirates will be put into operation another 9200 hotel rooms, so the room stock will increase by 6.4% to 154 thousand rooms, noted in a study by Knight Frank.
Not only the number of rooms is increasing – hotels also demonstrate high occupancy rates. For example, in the first half of 2023, Dubai recorded the highest occupancy rate in the world – 78%.
Over the past two years, Dubai has been recognised as the most popular tourist destination in the world by TripAdvisor. Growth in the industry is being fuelled by hotel giants, with Accor Group leading the way with 71,820 operational rooms, with a further 49,510 to be completed by 2030.
Marriott International Group manages 63,790 existing rooms and 52,790 rooms are under construction. IHG Hotels and Resorts hosts guests in 35,140 rooms, with 22,120 to come online in the coming years.
Hilton Worldwide has 33,450 rooms ready and 39,860 rooms under construction, Radisson Hotels has opened 22,830 and is preparing to open 11,651 rooms, while Rotana Hotels has 16,976 existing rooms and another 10,807 under construction.
Source: Gulf News
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