Dubai Booms as Regional Safe Haven

07/04/2011 - Dubai Investment News
Dubai Booms as Regional Safe Haven

Dubai has become a neutral ground for regional tourists and business travelers, according to a recent report by Reuters. Unrest in areas such as Bahrain and Egypt has served to increase visitors to the emirate, which in turn has impacted hotel and hotel apartments. Occupancy levels rose by 7.9% in January, according to figures released by STR Global, spelling yet more positive news for investors in the city’s hotel industry.

"It has been a windfall. There are 65,500 hotel rooms and apartments in Dubai, and they were all full. There was not a single one available," said Guy Wilkinson, managing partner at Viability Management Consultants, a hospitality consultancy, told Reuters. Over the next few months more accommodation is due to be released onto the market to meet with continued demand. The First Group’s First Central and Metro Central Hotel Apartments in Tecom are among the number of new projects due come online in the near future.

Business in the city is also booming, with a number of multinationals choosing Dubai as a safe haven in which to temporarily re-base their Middle East operations, until unrest in countries like Bahrain subsides. It is not the first time Dubai has been hailed as an impartial base. On the sporting scene, Dubai Sports City’s international cricket stadium regularly serves as neutral ground for Pakistan’s international matches.