Some Dubai hotels are reporting occupancy rates of 90% and above, a sign that guests, tourists and residents are resuming their pre-pandemic habits.
In addition, the upcoming Expo 2020 Dubai, the largest trade fair in the world, is proving to be one of the main motivators for the high occupancy rates in hotels.
In 2020, despite the pandemic, the tourism sector performed rather well as hotel establishments welcomed 14.8 million customers last year. Domestic tourism contributed 41 billion dirhams to the national economy last year, according to statistics from the World Tourism Organization and the UAE Tourism Council.
Hoteliers Khaleej weather confirmed the increase in occupancy rates and said room prices are expected to increase 30-100% before October 1.
The sharp increase in room rates is attributed to the fact that prices at four-star hotels are well below average, said Praveen Shetty, president and CEO of the Fortune Group of Hotels.
“Currently, occupancy rates for our hotel group are up 70%. Most of the travelers are transit passengers going to the United States, Canada and Saudi Arabia, ”he said.
Dubai, due to its liberal travel policies, has become a major transit hub.
“Travelers looking to the US, UK and Canada spend between five and 14 nights in the city and head to their final destination,” said Shetty.
The Fortune Group of Hotels owns seven properties across Dubai, but Shetty said the one near the Expo 2020 site in the Dubai Investments Park has the highest occupancy rate – 100%.
“This is followed by strong demand from hotels in Bur Dubai, Deira and Qusais,” he added.
Shetty also said room rates across the group will increase by 30% before October 1.
“Right now, room charges vary between Dh 150 and Dh 300, depending on the location and the size of the room,” he said.
At least 80 percent of the guests are from India and 20 percent from Egypt. “In the case of Western travelers, we have a large number of travelers coming from Europe and Russia,” he said.
Additionally, the ease of Covid-19 regulations and relaxed restaurant standards encourage more people to stay in hotels.
Sajeev Joseph, deputy director of sales for the Flora Group of Hotels, also said the group had a 90% occupancy rate at all three properties in its portfolio.
“Flora Creek, Flora Barsha and Flora Inn near Dubai Airport all have 90% occupancy rates. As the rules for Covid-19 are relaxed, guests from Saudi Arabia, Nigeria and India are the most numerous, ”said Joseph.
The group is also increasing its room rates by October 1.
“The rates for four-star hotels are expected to drop from Dh150 to Dh300 in the coming days,” he said.
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Shanu Varughese, Complex Director of Revenue Management at Millennium Place Barsha Heights, said: “With the lifting of travel restrictions over the past few weeks, the occupancy rate is on the rise and we have seen more full occupancies. compared to May 2021 – August 2021. Another reason is Expo 2020, which starts on October 1, thanks to which occupancy rates have been more robust. “
He added: “Our large arrivals margin comes from Latin America. We receive many guests from CIS countries, Saudi Arabia and other European countries, depending on the season. We offer a special stay and play package whereby guests also have free access to any of the four Dubai Parks attractions when staying with us. “