UAE to build 28,000 new hotel rooms by 2016
Dubai, June 1, 2014
The overall UAE tourism and hospitality market is expected to witness positive and stable growth rates for the next three to five years supported by over 28,000 new hotel rooms that are expected to be built in the emirates by 2016, said a report.
Dubai and Abu Dhabi are spearheading the hotel rooms construction activity in the emirates comprising almost 50 and 31 per cent of the development pipeline, respectively, stated JLL Hotels & Hospitality Group in its latest Hotel Intelligence Reports for the UAE and Abu Dhabi.
The impact of increased visitor arrivals to the UAE was reflected in improved performance of city hotels as well as resort locations. Of the UAE’s 590 hotels totalling more than 93,000 rooms, Dubai and Abu Dhabi account for 86 per cent of current hotel supply in the country.
International operators control about 68 per cent of the total hotel room inventory and the majority of supply is concentrated in the upscale (4 and 5 star) segment.
According to JLL, Dubai remains the market leader by trading performance and tourist arrivals, where successful growth strategies to diversify the tourism demand base have enhanced its image as a premium global tourism destination.
The city is expected to continue on its sustainable growth path with a balanced demand and supply dynamic in the short to medium-term, said the property expert in its report.
JLL pointed out that the UAE capital had witnessed selective recovery in hotel performance across the city. As Abu Dhabi’s tourism and leisure offerings develop, the hospitality sector is poised to witness growth in the medium to long term, it stated.
Abu Dhabi’s hotel demand has been driven by strong performance in the corporate and MICE segments, but the Abu Dhabi Tourism and Culture Authority (ADTCA) has increasingly focused on developing the emirate as a leading destination for leisure tourism.
According to JLL, the number of tourists in the emirate has increased gradually since 2004, from less than one million to approximately 2.8 million total visitors in 2013. The larger tourist numbers, along with an average length of stay of 3.13 nights, resulted in almost 5.31 million guest nights in 2013.
The Northern Emirates, in particular Ras Al Khaimah and Fujairah, have emerged as key getaway destinations registering rapid growth in tourist arrivals. Continued marketing efforts and completion of master-planned projects in these emirates will be key drivers to establish their position as a tourist destination.
Chiheb Ben-Mahmoud, the executive VP (Head of Hotels & Hospitality Group) Middle East & Africa at JLL, said: "The synergies in strategies between key drivers, such as airlines, travel sectors underpin the increasing popularity of the UAE as a tourist destination."
Such synergies, he noted, are executed in attracting new markets, by way of destination marketing by tourism authorities, coupled with introducing direct air connections to the those markets.
"There has been an increase in hotel development activity over the last two years due to the encouraging signs in the tourism sector and wider economy. With increased investor confidence, older projects have been revived and new projects announced with international operators constantly trying to increase their hotel footprint in the UAE," he added.-TradeArabia News Service