With visitors numbers forecast to rise above 8 million by the end of this year, hotels in Dubai will be counting the profits. According to a new study by STR Global, the market will see revenue per available room rocket by 8-9% over the coming months. The influx of visitors will also boost demand for hotel rooms by 15% for the whole of 2011.
Growth of new hotel room supply in 2012 is also forecast to grow by 9.6% according to the STR Global report. Currently there are 13,000 rooms under construction, with another 21,000 in the pipeline. Demand growth in Dubai’s hotel industry overall was up 16.5% this August compared to August 2010, while demand for the luxury/upscale segment of the market industry rose by 17.6%.
In addition, international visitor spending in Dubai is expected to rise by 24% to $7.8 billion this year, compared to $6.3 billion in 2010, with Dubai’s hotels set to benefit greatly from this boost. The First Group recently added to the city’s vibrant supply with the opening of First Central, a prestigious hotel apartment development located in the business district of Tecom.