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UAE hotels report postive performance in Q1

DUBAI, July 14, 2016

Hospitality and tourism activity continued to pick up in parts of the Northern Emirates as visitor numbers and occupancy rates recorded y-o-y increases during Q1 2016, said a report.

Furthermore, some emirates have shown a strong focus on new destination brands and tourism visions to drive forward expansion plans to achieve growth targets, a report by PKF Consulting house highlighted.

Ajman’s hotel establishments recorded a total of 313,724 guest nights during Q1 2016, while the total number of guests to the emirate amounted to 142,404. Occupancy rates across Ajman’s hotels averaged 70 per cent during the first quarter (y-o-y increase of 12.2 per cent), while occupancy in the hotel apartment segment dipped slightly by 3.2 per cent and stood at 76 per cent.

The number of hotel establishments at the end of Q1 totaled 36 with an estimated 3,192 keys, compared to 35 establishments and 3,140 keys in the first quarter of 2015. Furthermore, total tourism revenues generated during Q1 2016 reached Dh108 million, an increase of 36.3 per cent from Dh90 million in Q1 2015. To further boost its tourism revenues and reposition itself as a cultural tourist destination, Ajman launched a new destination brand in March 2016 based around the slogan “Sincerely Emirati”. The new brand puts emphasis on the Emirati hospitality, local traditions and customs, which is aimed at differentiating the Emirate from the UAE’s current leading tourist destinations - Dubai and Abu Dhabi.

In Ras Al Khaimah, according to official government statistics, occupancy rates across the hotel sector were recorded at 71.3 per cent during Q1 2016, up from 60.6 per cent registered in Q1 2015 (17.7 per cent increase), while RevPAR figures witnessed a y-o-y increase of 9.2 per cent. At the end of Q1, the emirate’s hotel room stock totaled approximately 5,000 rooms across 41 properties, while another 3,000 keys across 12 properties are expected to enter the market by 2019. As part of RAK’s tourism strategy to attract 850,000 visitors in 2016 and more than 1 million visitors by 2019, the emirate has placed a great importance on diversifying its source markets and targeting not only the luxury but also the mid-market traveller. This has been reflected in a number of recently launched marketing campaigns as well as the upcoming hotel supply, which will include three-star properties such as Hilton Garden Inn and Golden Tulip Hotel. In addition, Q1 witnessed a boost in the emirate’s connectivity as new airlines, such as Qatar Airways and Air India Express, inaugurated flights to/from RAK Airport, while other airlines increased the frequency of their scheduled flights to cater to the rising demand.

In Sharjah, despite the decline in visitor numbers during 2015, the emirate is expected to rebound in 2016 as a result of a forecast of 3-5 per cent increase in guest numbers.

Despite the fact that there were no new notable hotel completions during Q1 2016, the remaining 9 months of the year are expected to witness the inauguration of two highly anticipated properties, namely The Oberoi Beach Resort Al Zorah and Fairmont Fujairah. - TradeArabia News Service




Tags: UAE | hotels | growth | Rates | Occupancy |

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