Dubai’s hoteliers celebrate bumper performance in December

Dubai once again proved its reputation as the Middle East and Africa’s leading tourism destination and hospitality hub in December, with the emirate leading the region in terms of hotel occupancies, average daily rates (ADR) and revenue per available room (RevPAR) during the month, according to industry analyst STR.

Dubai’s hotel occupancy rate averaged 76.6% in December, while ADR and RevPAR reached US$243 and US$186 respectively, according to STR data.

The latter two performance indices demonstrated the strength of Dubai’s economic recovery from Covid-19, with ADR up 33.8% and RevPAR increasing 31.1% compared to December 2019, prior to the onset of the pandemic. According to STR, both indices tracked above 2019 comparable monthly rates throughout the course of 2022, while daily occupancy levels remained above 70% throughout December with the exception of four days.

New Year’s Eve performance sets new benchmark

Dubai also demonstrated why it is recognised as one of the world’s leading destinations to celebrate and see in the New Year, with the city’s hotel occupancy rate peaking at 91% on 31 December. Hoteliers also benefitted from the massive rise in demand for accommodation on New Year’s Eve, with the citywide ADR reaching a monthly high of US$480 and RevPAR totalling US$437.

The December results capped another strong year for Dubai’s tourism and hospitality industry. According to the latest data from Dubai’s Department of Economy & Tourism, Dubai welcomed 12.82 million international visitors in the first 11 months of 2022, up from just 6 million in 2021. This translated into strong demand for hotel accommodation, with the city’s occupied room nights reaching 34 million, up from 28.19 million in 2021 and 29.1 million in 2019, prior to the pandemic.

Meanwhile, tourism contributed US$29.4bn to Dubai’s economy in 2022, according to KPMG, with the analyst forecasting Dubai’s hotels will welcome 40 million overnight guests by 2031.