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Friday, 06 November 2009 11:59 UAE time

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For whom the road tolls

by ArabianBusiness.com staff writer  on Wednesday, 11 July 2007
Hoteliers are concerned about the effect of Dubai’s traffic on their hotels’ operations.

Dubai hotels have battled traffic congestion, a lack of parking and a shortage of taxis for some time now, but with the new Salik road toll to be introduced on Sheikh Zayed Road (SZR), many hoteliers are fearing the extra costs.

Radisson SAS Hotel Dubai Media City sales and marketing director Lars Gericke said the hotel expected to incur increased costs from suppliers, and the cost of airport transfers passing the two toll points on Garhoud Bridge and SZR near the Mall of the Emirates.

"The infrastructure or alternatives are not ready," he said. "[Traffic] will go down Jumeirah or Al Wasl roads - will they cope? With the metro not there yet, it's not a good way to start. I think it is a reasonable thing to do [to toll the road], but the infrastructure is not in place."

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Mövenpick Hotel Bur Dubai general manager Michael Nugent agreed there would be an increase in operational costs.

"But we will share the cost of this with our guests, having advised them in advance," he said.

Kempinski Middle East and Africa regional director of public relations Doaa Amin predicted the introduction of Salik would actually improve business at the Kempinski Mall of the Emirates hotel.

"It is evident that traffic is getting more challenging every month," she said. "We think that when the congestion on SZR is cleared a little bit, we will be able to get the business we otherwise could not get due to traffic."

But not all hoteliers are predicting an impact on their bottom line - Ramee Guestline Deira Hotel general manager Harry Singh said because most of his suppliers were local, they would not need to pass toll points.

"But we have a major issue with the taxis," he said. "We don't get any support [from the Roads and Transport Authority (RTA)] when we ring their number trying to get taxis for our long term residents. There is a very big shortage of taxis in Dubai."

Nugent agreed, saying his hotel had organised a private limousine service to ensure guests were not inconvenienced. "[But] it is important not to over dramatize the traffic situation, as we just have to plan around it," he said.

Government of Dubai Department of Tourism and Commerce Marketing media relations executive Mohammed Abdul Mannan said the department was aware of the problem.

"The traffic is an issue, and we are trying to solve it with the Roads and Transport Authority," he said.

"Another issue is parking - if there is no parking available at the front of the hotel, how do the guests get into the hotel?

"It's completely an issue for the RTA, but these problems are genuine and need to be regulated."

Hotelier Middle East contacted the RTA for a comment, but it did not respond before deadline.

Some hoteliers are working to maximise the traffic situation to their advantage.

Nugent said the problem was no worse than other major international cities, and consumers would merely become more zoned in their movement.

"As a result, we will continue to focus our marketing towards the many residents living in the Bur Dubai and Sheikh Zayed Road area," he said.

Gericke said his hotel promoted the light local traffic in Media City as a selling point.

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