Dubai hospitality sector sees green shoots of revival

Dubai Hotels will be hoping a return of events – even in a truncated form – can help them restore occupancy levels.

UAE hotels February Occupancy rates were at 59.7 per cent, down about 22 per cent from a year earlier. It was from March 2020 that the local authorities launched stringent measures to arrest the spread of COVID-19 and grounded passenger flights.

According to data from the hospitality consultancy STR Last month, average daily rates at UAE were down nearly 19 per cent to Dh421.42. And during the month, revenue per available room fell 36 per cent to Dh251.53.

The return of exhibitions and conferences – even adhering to strict controls on health guidelines – will speed up the process. Abu Dhabi showed how it can be done, by hosting an in-person defence industry event IDEX over five days from February 21.

Stakeholders in Dubai’s tourism industry will have noticed those numbers, as they prepare for the home stretch leading up to the Expo in October. This, according to Dubai Department of Tourism and Commerce Marketing, will provide the best pathway to building the “second-half rebound in 2020”.

“UAE hotels started 2021 much like they finished 2020, with steady improvement - and some of the world’s best performing occupancy levels,” said Philip Wooller, STR’s Director for the Middle East and Africa.

“While domestic demand has remained the primary source of business, the biggest challenge is the restrictions on UK travellers,” he added.

The way Wooller sees it, these restrictions will have only delayed an eventual recovery. “With expectations that the pandemic situation improves and tourism picks up, we are forecasting significant recovery for the [UAE] hotel sector later in the year,” he added.