|
Hotel
occupancy rates drop in Dubai
DUBAI, (AFP) - Hotel occupancy rates in Dubai dropped
to 79 percent in 2008, the lowest level since 2004,
with a decline in demand from Europe due to the financial
crisis, a consultancy firm said on Monday.
Hotel occupancy last year was five percent lower than
in 2007, which saw rates soar to 84 percent, Jones Lang
LaSalle (JLL) said in a report.
“Over the period between July and December 2008,
occupancy rates fell by approximately seven percent,”
JLL said. “This came as a result of the new supply
in the market, as well as the softening in demand from
key European source markets brought about by the dollar
appreciation and the financial crisis.”
Dubai has embarked on extensive construction projects,
boasting three palm-shaped islands off its coast as
well as what is tagged as the world’s tallest tower
and the seven-star sail-shaped Burj Al-Arab hotel.
The emirate formerly said it plans to attract 15 million
tourists by 2015 but the global economic downturn has
forced many tourists around the world to scale back
their travel plans.
Several hospitality and leisure companies in Dubai,
which has benefited from an oil-fuelled economic boom
over the past six years, have put on hold or cancelled
many mega projects.
JLL expects the hotel market to perform worse in 2009
than previously forecast and tourist arrivals to be
less than Dubai Department of Tourism and Commerce Marketing’s
(DTCM) goal of 13 percent annual growth. Upscale hotels
would be the most at risk as Europeans cut back travel
budgets, it said.
According to DTCM, however, in the last week of February,
average hotel occupancy for five-star beach hotels was
95 percent with the average room rate at 1,239 dirhams
(337 dollars).
Dubai hotels received 6,996,449 guests in 2008 compared
to 6,951,798 visitors the previous year, earning the
emirate 15.25 billion dirhams in revenues, an increase
of 15 percent over the previous year, the DTCM said.
|
