By Andy Sambidge
Hotel rates rise from below 50% to 80% as Dubai 'regains vitality' for investors - DED.
Hotel occupancy rates in Dubai have rebounded from below 50 percent to 80 percent this year, a government official has said.
Mohammed Shael Al Saadi, chief executive officer, Business Registration and Licensing of Dubai's Department of Economic Development (DED) said the figures showed the emirate's recovery from the global downturn.
"Dubai is regaining its vitality as investment and tourism destination nowadays. Hotel occupancy rate has bounced back to 80 percent or more after plunging to below 50 percent earlier this year," he told delegates at an economic forum.
He said in comments published by news agency WAM that the success of budget carrier flydubai had resulted in thousands of tourists from India, Egypt, Syria, Lebanon and Turkey coming to Dubai.
He claimed Dubai was no longer a city of luxurious hotels for high-end tourists only.
Even seven star hotels in Dubai are now affordable for ordinary tourists, he added.
The economic forum in Dubai also heard from Chung Byung-chol, vice chairman of the Federation of Korean Industries (FKI).
He said favourable economic fundamentals were returning to Dubai thanks to fresh growth potential offered by Dubai government.
He also said that more Korean business interests were considering teaming up with UAE business partners for new projects in construction, high tech and knowledge-based industries - describing Dubai as the "preferred destination for Korean investors".
FKI is the most influential economic organisation in Korea. Currently there are 52 Korean companies operating in Dubai, the forum heard.
After General Tamin's comments yesterday, some of us hoped that a new era of reality was dawning in Dubai. But then WAM decides to release a statement with no proof of how on earth they came up with these numbers... Ah well, it was good while it lasted....
While 30% maybe a question mark, friends from hospitality do suggest that business is a lot better compared to last year. But whether it is 10% or 30% I guess it varies from hotel to hotel and location as well. But having said that, summer occupancy will be less than winter.
I got friends working AND staying at hotels since long time here in DUABI, and they told me that two of the major hotels in Dubai have closed full floors (up to 80%) of their total capacity, so where did this 30% increase come from?
80% shouldn't come as a surprise to anyone. For a city like Dubai, that is just normal. Any metropolitan cities will have 70-80% and is no surprise. After all, the news isnt about Kuwait or Riyadh.
We are in a Tourist related business and our revenues are down by around 80% from the highs of 07.
Dear, I have no clue about Kuwait, but Riyadh is always full. You may try it by ringing up any 4 to 7 star hotel in Riyadh and you shall have the answer yourself. Believe me Riyadh is huge, the business is booming it is indeed a Metro. T
Very funny one. I am in Hospitality industry and from Dubai friends call me to see any job in Abu dhabi and Hotels are forcibily sending them to vacation even they are eligible. I am telling about a two year old 5 star property, which is worst than last year summer!
The title is misleading indeed. For instance in a 800 room hotel, if you filled 100 rooms last year and 200 this year- Yes ur occupancy rate is up 100% year on year bot ur real occupancy rate is only 25%. Playing with numbers and giving a false sens of optimism is not the right way to report. You guys need to read NYTimes or the economist and see how they analyse the numbers. very amatuerish reporting here.