Dubai received over 5.5 million tourists in the first half of 2013, registering a double digit growth of 11% over the same period in 2012. The city has sustained its healthy growth levels in terms of tourism demand and this is reflected in improved hotel performance across the city.
Airport arrivals have registered a 15% increase in the January-August 2013 to nearly 38 million supporting the demand curve. Earlier this year, Dubai Airport became the second busiest airport in the world, maintaining its growth story.
July was a slow month for the hotel industry in Dubai due to the combination of summer months and Ramadan. Nevertheless, the average performance YT August 2013, remained positive, supported by the growth experienced in the first six months of the year.
Occupancy rates as at YT August 2013 have increased by 2 percentage points over the same period in 2012, reaching 79% on a city-wide basis.
Average Daily Rates have witnessed an 5% improvement reaching USD 235 in YT August 2013 as compared to same period in 2012.
As a result RevPAR levels showed an impressive 7.5% growth reaching USD 185 in YT August 2013 over the same period in 2012.
Hotel supply
The third quarter of 2013 saw some notable openings on Palm Jumeirah, such as the Sofitel and the Anantara. The Conrad Dubai, located on Sheikh Zayed Road, was also another new entrant to the market.
The main openings scheduled for the end of 2013 include the Novotel Al Barsha and the expansion of the Millennium Airport.
During the third quarter of 2013, several new hotel developments were announced such as an hotel on JBR, two hotels by MAF attached to their malls – Deira City Centre and Mall of Emirates, the Dream Hotel in Marina and TRYP by Wyndham in TECOM. Some of these new projects represent the entry of new brands and operators into the Dubai hospitality market.
A number of existing hotels are undergoing renovation and refurbishment plans. The Sheraton on the Creek, has closed for a complete renovation while the Ritz Carlton on JBR has shut down its old wing. Habtoor Grand has recently reopened 320 refurbished rooms in its two towers. Many Dubai hotels are also revamping specific areas, particularly the food and beverage facilities.
Dubai Department of Tourism and Commerce Marketing (DTCM) have announced the Vision 2020 for the tourism sector with an ambitious objective of achieving 20 million tourists by 2020. The hospitality supply and tourism projects planned for the next 7 – 8 years are expected to be aligned to this goal.
