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Sat 13 Sep 2014 01:40 AM

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Revealed: how Ramadan affected performance of Dubai hotels

Latest STR Global data shows occupancy slumps to 41% but little difference compared to 2013 holy month

Revealed: how Ramadan affected performance of Dubai hotels
(AFP/Getty Images)

Hotels in Dubai saw very little difference in performance during Ramadan this year compared to the previous year, despite the holy month taking place earlier in the summer, STR Global has said.

Its data showed that hotels in the emirate performed nearly in sync during Ramadan 2014 compared with Ramadan 2013.

Average daily rate (ADR) levels grew by AED4 and despite the 7.8 percent supply growth in 2014, hotels were able to maintain the same levels of occupancy, the analysis showed.

STR Global said that during Ramadan, which took place between June 28 and July 28 this year, hotels in Dubai reported an occupancy rate of 41.2 percent, an ADR of AED576 ($156) and revenue per available room of AED237.

During Ramadan last year, which was July 8 through August 7, Dubai hotels reported an occupancy rate of 42.7 percent, an ADR at AED572 and RevPAR of AED244.

“As Ramadan occurs at different times each year, we are always curious to analyse any differences in performance during the fasting month to determine whether its timing has an impact”, said Elizabeth Winkle, managing director of STR Global.

“We see very little difference from 2013 to 2014. In both years, Ramadan occurred in the height of summer months which is traditionally a slower period for the country’s hotels." 

She added: “The slow performance during July 2014 was anticipated. July is typically the weakest month of the year, and the timing of Ramadan had an impact on performance for the month.

"Post-Ramadan we’ve seen an initial uptick”, Winkle said. “We expect, as forecasted in conjunction with Tourism Economics, that Dubai hotels will end the year with a 2.2 percent increase in RevPAR."

Last month, it was announced that Dubai's hotels welcomed more than 5.8 million tourists in the first half of 2014 - the highest number of visitors ever achieved in the first six months of the year.

The statistics, released by Dubai's Department of Tourism and Commerce Marketing (DTCM), showed increases across key indicators including hotel establishment guests, hotel and hotel apartment room revenues, F&B revenue and average length of stay.

Revenues for hoteliers and hotel apartment operators saw significant growth - with total first half revenues reaching AED12.74 billion ($3.18 billion), up by 10.9 percent on the same period last year.

Hotels and hotel apartments reported increases in room revenue (15.3 percent) as well as F&B & other revenue, which rose by 3.8 percent.

In addition to the increase in hotel guest numbers, since the end of June 2013, Dubai said it has added more than 7,000 hotel rooms to its inventory, with the total now standing at 88,680 across 634 establishments.

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Amir 6 years ago

Can we please stop using ramdan atleast for marketing. Its not business always thats important.