Dubai hotels post strong occupancy

Dubai hotels continue to enjoy strong occupancy levels this summer despite the bleak global economic climate and continually rising fuel prices, industry experts have said.

While the hospitality industry in Western countries has suffered under the pressing challenges of staying on course and responding to the economic downturn, hotels in Dubai remain optimistic about the continued inflow of tourists, particularly in the months to come.

Natalie Nasser, Director of Business Development for Hilton Dubai Jumeirah and sister property Hilton Dubai Creek, said both properties have maintained the same occupancy levels in the first six months this year compared to the same period last year.

"Both hotels performed very well in July, recording an average 90 per cent occupancy. However, we had more demand for our beach property, which is a typical summer trend," Nasser said.

Elie Armaly, Business Development Director at hospitality consultancy Roya International, told Emirates Business that hotels have seen a "slight drop" in occupancy levels this summer compared to previous years but there hasn't been a noticeable difference in average room rates.

"We have noticed a slight drop in occupancy in both five-star and four-star hotels and that is expected. More people have been flocking to the Mediterranean parts of the Middle East, including Lebanon, Syria and Egypt, as well as to the Far East in Bangkok, Malaysia and Indonesia. This did affect the occupancies, particularly in Dubai and the GCC in general," Armaly said.

He said although there was an increase in the number of room inventories in Dubai this year, it has not slowed the market down. "Basically everybody takes less of the market share with more inventory," Armaly said.

A number of new hotels have opened in the emirate this year, including The Westin Dubai Mina Seyahi Beach Resort & Marina, which opened in May.

And high-end hotels in the city have been offering more discounted deals this summer compared to previous years because of the greater competition from other destinations and increase in inventory, said Armaly.

Fairmont Dubai said it has seen an increase in total hotel revenue this summer compared to last year. The hotel has been highlighting special deals such as its "Shop Therapy" and "Spa Escape" leisure packages to draw customers during the summer months.

Shangri-La also saw higher revenues with improved average rates this summer compared to the same period last year thanks to higher-than-average business from foreign individual travellers this year. However, the hotel said the market this summer is "softer" compared to the same period last year, mainly as a result of the increased inventory available in the emirate.