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Tue 12 Aug 2014 10:30 AM

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Dubai hotels record worst month in 18yrs

A sharp increase in hotel rooms & fall in demand saw Dubai hotel occupancy plummet to just 45% in July

Dubai hotels record worst month in 18yrs

Dubai hotels have experienced their worst month in 18 years, newly released July occupancy rates show.

A sharp increase in supply (8.3 percent) coupled with a significant fall in demand (-4.5 percent) saw the emirate record an 11.8 percent drop in occupancy for the month, to less than 50 percent, according to STR Global, which monitors hotel occupancy rates each month.

The 45.4 percent occupancy rate is almost half the 80-plus level Dubai had been averaging earlier this year.

It is the worst monthly data since records began in 1996, according to STR Global.

The fall also drove down revenue per available room (RevPAR) by 7.4 percent to AED290.23.

Rather than attempt to boost occupancy with reduced rates, hotels hiked them up, increasing the average daily rate by an average 5 percent to AED638.66.

“Dubai reported the lowest occupancy levels of any month for the last 18 years, when STR Global began tracking hotel performance for the market,” STR Global managing director Elizabeth Winkle said.

“As July is one of the hottest months within the region and coincides with the fasting month of Ramadan, the city had an overall negative trend, on top of growing supply.”

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Granny Scroggins 5 years ago

It's because it was Ramadan, rather than some other underlying trend

Alya 5 years ago

Understandable. Open restaurants in Ramadan.

Closing restaurants in Ramadan, is like closing shops during prayers in Saudi Arabia.

howard johnson 5 years ago

I could see this coming for some time.
Dubai has grown too quickly and now looks more like a concrete jungle with unfinished buildings and a construction site.
Tourists are tired of shopping and would rather prefer a quiet getaway at a resort in a quiet countryside.
we just visited LaManga club in Spain and it had everything we wanted on site including , miles of beaches, golf clubs, tennis courts, restaurants, mountains, idylic villages..really relaxing and cheap.
Dubai needs to focus on quality offerings and quality of lifestyle and not just Bigger is Better

Built by slaves 5 years ago

Yes, definately because of Ramadan, that's why all the Russians, Germans and Brits didn't venture to the middle of the desert to face the scorching heat and pay loads of money to stay in a hotel with about as much atmosphere as a Mansfield Town home fixture on a soggy Saturday afternoon...definitely down to Ramadan.

Animesh 5 years ago

What the article clearly mentions is the worst performing month in 18 years and therefore all the arguments pertaining to Ramadan do not hold much water. Dubai in the last few years has become too expensive without a reasonable growth in affordable hotels, and therefore the traditional summer visitors from Eastern Europe, and Sub-continent have been looking at different options. Abu Dhabi, Srilanka, Malaysia, Egypt, South of India and to an extent Eastern Europe and even South Africa (thanks to fall in Rand) have become more attractive. Having said so Dubai still holds the roost and should seriously consider the affordability part of the equation.

A.K.SALEEM 5 years ago

next month onward will increase the occupancy saleem

JWJ 5 years ago

You saw this coming... it was a bad month, but an excellent year.

People need to keep some perspective.

Everythings fine 5 years ago

I guess you live here Howard Johnson - I personally would agree with you - but I've lived here for 6 years! However when I first came I fell in love with Dubai - it's an amazing city and people all over the world love it. Just because your personal perception has become jaded -and with the new Habtoor complex being built this will focus more on site facilities.