UAE: The UAE’s hospitality industry is continuing to rebound, and it will be ready to welcome the world for Expo 2020 Dubai in the second half of 2021, with 12,000 new keys in Dubai and 1,400 in Abu Dhabi.
Ayman Ashor, cluster general manager for Al Bandar Rotana and Arjaan by Rotana, said Dubai and the UAE hotels have been preparing for Expo 2020 since last year to accommodate and welcome a variety of nationalities and budgets.
“Hotels are now offering different types of stays that fit individuals, groups and exhibitors. We are also providing transportation to and from Expo daily to hotel guests to make the stay as useful and entertaining as possible,” he said.
Other related businesses, such as retail, residential, transit, and food and beverage, will also profit directly or indirectly from Expo 2020, according to Ashor.
Hotel occupancy in Dubai has steadily improved this year, according to JLL’s latest UAE Real Estate Market Performance research, with 58 percent in the first five months of 2021 compared to 46 percent in the same period of 2020.
Similarly, from January to May 2021, occupancy levels in Abu Dhabi increased by 1% to 61%. In the capital, however, average daily rates (ADRs) are still under pressure, having fallen 7% to $89.
Hotel occupancy levels are expected to rise in all emirates in 2021, according to Colliers International.
Because international tourism has been hampered by the pandemic and travel restrictions, UAE tour operators have continued to offer staycation packages to capitalize on domestic demand.
“We can expect this trend to continue for the short to medium term until further easing of travel restrictions are successful in opening key source markets, particularly ahead of Expo 2020,” said Dana Salbak, head of research at Mena at JLL.
In the second part of the year, the UAE will get a new supply of 13,400 units to meet growing demand and the gradual return of tourism following the pandemic’s impact on the hotel industry.
According to the survey, four-star hotels account for nearly half of the projects under construction (49%) and a number of new five-star establishments account for 37% of the total.
“The balance between four and five-star hotels comes as no surprise and is in line with Dubai’s expanding tourism base. Offering more mid-segment and affordable hotel stays without compromising on quality has been a part of Dubai’s strategy to attract visitors from various destinations and comes in light of the high visitation numbers that are anticipated for Expo,” said Dana Salbak, head of research at Mena at JLL.
In comparison to other markets in the region, the UAE and most of Saudi Arabia’s hospitality industry are likely to rebound faster, according to Colliers.
The UAE could benefit from the Expo’s build-up, according to the report, with the event set to begin in Q4 2021.
