Hotel Occupancy in Dubai hits record 90%

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Villa Riverdance Palm Jumeirah Islands Dubai
Villa Riverdance, Palm Jumeirah Islands, Dubai. Photo-Dubai Holiday Villas/Flickr

According to TRI Hospitality Consulting’s Hotstat’s survey, the hotel occupancy in Dubai and the adjoining state Abu Dhabi hit a staggering estimated 90%. The reason: Dubai Shopping Festival.

The survey that analyses data across hotels, rated as 4-star or 5-star across the Mena region, presented that the average occupancy rates in Dubai increased by 4.2 percentage points from last year, giving a total of 89.6%. The rise in occupancy rates is also coupled with an increase in hotel room rates (which have risen by 5% to $359.39) and revenue per available room (RevPAR) (which has risen by 10.2% to $321.85).

Abu Dhabi also benefitted from the influx of global visitors, owing to the high interest in the Dubai Shopping Festival that offers commendable retail bargains. The hotel occupancy witnessed an increase of 10.8 percentage points, culminating to an occupancy rate of 71.7% in January. However, unlike Dubai the hotel room rates and RevPAR did not yield a percentage growth, and dropped by 10.7% in January to $167.77 and by 5.3% to $113.05, respectively.

Peter Goddard, the managing director at TRI Hospitality Consulting, presented his accolades on the DSF and how with time not only has it gone better but also contributed to the development of tourism in Dubai. He attributed the inability of Abu Dhabi to register an increase in hotel room rates and RevPAR to the competition prevalent in the region.

He further cited that international tourists are seeking to take advantage from reduced rates and bargain packages being offered in Cairo and Sharm el Sheikh in Egypt. Unstable political conditions in the country have weakened the Egyptian pound, allowing the country to become affordable to globe trotters. This led to an increase in occupancy rates by 9.3 percentage points to 57.2%, room rates by 9.8% to $49.11, and RevPAR by 31.1% to $28.10 in Sharm el Sheikh, and occupancy increase by 5.9 percentage points to 43.7% and RevPar increase by 20.7% to $48.41 in Cairo.

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