Arabian Business talks to three key players in the hotel space about oversupply, lower consumer spending and the possible impact of VAT on the market.
Change is on the horizon for Dubai’s hotel industry. More than 50,000 hotel rooms are expected to be delivered in the UAE in the build up to Expo 2020, in order to provide accommodation with the anticipated 25 million visitors who will come to the country over the course of the six-month event.
The question facing the hospitality sector is what will happen when the Expo is over? Will the market experience an imbalance of supply and demand, or will it have matured and learned to survive on lower occupancy or yields? More importantly, how will the market keep up with travellers who are spending less on accommodation in a city where most hotels are in the luxury category?
Also, is it strong enough for hotels to pass on the newly introduced cost of VAT onto the customers?
Arabian Business speaks to three industry experts.
Simon Allison, Founder of Hoftel,
Olivier Harnisch, CEO of Emaar Hospitality,
Tony Ryan, Managing director of JLL Hotels & Hospitality.
(Source: Arabianbusiness.com YouTube channel)