Plenty of room for growth in Dubai’s hotel industry
24/06/2012 - Dubai Property News
With new hotels opening across Dubai on a regular basis, it would be easy to think the city is reaching the top of its quota. However, industry experts are confident that rapidly growing demand will continue to outweigh supply. STR Global has revealed demand in Dubai’s hotel sector increased by 13.9% in 2010, and 17.1% in 2011 – a trend that looks set to continue throughout 2012.
“Dubai, should be able to absorb more hotels as the government continues to develop demand generators [like the expansion of airport and harbour capacities and focusing on tourism, trade and logistics],” commented Elizabeth Randall, Managing Director, STR Global in Dubai’s Gulf News.
According to a survey by Ernst & Young, Dubai will add around another 4000 branded hotel rooms this year, a number which reflects the continued boom in the city’s hotel and tourism industry. Dubai’s hotel industry has also posted highly positive results over the last year, with revenues rising by 20% in 2011 to Dh16 billion. Guest nights also increased to 32.8 million, while the emirate’s hotel count stood at 577 at the end of the first quarter of this year.
Experts say factors such as increasing tourism flow from new markets like China and Russia are helping to boost Dubai’s tourism and hotel industry. New routes on the region’s airlines such as Emirates, Flydubai, Etihad and Qatar airways are also adding to the growth of Dubai’s hotel market. With the outlook remaining highly positive for the rest of the year, investment in this thriving sector remains lucrative. The First Group recently unveiled its latest opportunity to invest in the hotel industry - TFG Dubai Marina hotel, a luxurious hotel apartment in the coveted property hotspot of Dubai Marina.
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