Dubai to be home to 50% of 28,000 additional UAE rooms by 2016

More than 28,000 additional hotel rooms will be available in the UAE by 2016 and half of them will be built in Dubai, according to the latest intelligence review from Jones Lang LaSalle (JLL).

The boost to Dubai’s supply can be attributed it being chosen as the site for the 2020 World Expo, suggests the report.

JLL analysts wrote: “The impact of increased visitor arrivals to the UAE was reflected in improved performance of city hotels as well as resort locations in 2013. The UAE currently comprises 590 hotels totalling more than 93,000 rooms at the end of 2013. 

“With Dubai winning its bid to host the Expo 2020 event, the hospitality sector should be a major beneficiary, with up to 25 million visitors expected during the six-month period. The event will benefit not just Dubai but also Abu Dhabi (and other emirates) with many guests choosing to visit multiple destinations within the UAE.”

According to the professional services and investment management company, around 31 per cent - or 8,700 rooms - of the new supply of hotel rooms will become available in Abu Dhabi.

The additional supply will be needed, suggests JLL as the firm predict that Dubai is expected to maintain sustainable growth with a balance demand in the short term. The UAE tourism and hospitality market is also expected to experience positive and stable growth over the next three to five years. 

Currently, local companies and high-net worth individuals constitute a large portion of the investors in this particular sector, but there has been an increased appetite by global institutions and firms in key assets and developments.

A separate report from the World Travel and Tourism Council demonstrates that the travel and tourism sector’s contribution to the economy grew from AED193.6 billion (£31.5 billion) in 2012 to AED199.8 billion (£32 billion) last year. The organisation expects annual growth to rise to five per cent, leading to a contribution of AED325.4 billion by 2023 - equating to 16.4 per cent of the UAE’s GDP.

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