Dubai hotels to profit from events and cruise tourism rise

04/03/2012 - Dubai Investment News
Dubai hotels to profit from events and cruise tourism rise

The Dubai hotel industry will see a rise in demand for rooms this year thanks to an increase in international business events. The MICE sector is forecast to grow in 2012, with the Dubai World Trade Centre alone expected to host 115 more conferences and exhibitions; a rise of 15% on 2011. This is in turn will cause a spike in demand for hotel rooms across the city, according to the Department of Tourism and Commerce Marketing (DTCM).

Another growth sector is cruise tourism, with 400,000 extra tourists predicted to visit the city via cruise ships this year. While the Dubai Shopping Festival has already had a hugely positive impact on the hotel market, a succession of other events such as the Saudi Arabian school holidays and Chinese New Year have also had a big impact. Other factors such as the expansion of the Dubai International Airport and an increase of routes on carriers such as Emirates Airline have also served to boost Dubai tourism and hotel industry.

Dubai’s hotel market revenue rose by 19% to Dh10.9 billion from January to September 2011, according to the DTCM. "We strongly believe that the RevPAR will continue the same trend in Dubai in 2012 despite new properties coming online," commented Eyad Abdul Rahman, DTCM Executive Director of Media Relations and Business Development.