Hospitality sector upbeat on 2020 move
Dubai's decision to bid for 2020 Olympic Games and the World Expo has sparked hopes in Dubai's otherwise slowing travel and tourism industry amid tough economic times.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Sunday launched Dubai 2020, a new initiative that focuses on a number of sectors within Dubai and the UAE, with the aim of further enhancing social and economic progress in the region.
The sector would benefit enormously from the international event if Dubai's bid to host the 2020 Olympics and gets accepted, Dubai hoteliers told Emirates Business, as they gear up for the opportunity.
"Dubai 2020 gives Dubai's ambitions of becoming a major global player a structured, more focused approach and undoubtedly gives Hilton the opportunity to deliver on the city's promise of world class hospitality," said Christian Muhr, General Manager, Hilton Dubai Jumeirah, Resort and Residence.
Asked of the hotel's expansion strategy keeping 2020 in mind, he said: "At present, we are proceeding with the development of our pipeline projects in a disciplined manner and will be adding the Conrad Dubai and the Hilton Dubai Jumeirah Beach Residence to our Dubai portfolio by 2011." By 2010, Dubai is expected to expand its room stock by more than 20,000 rooms, according to Hospitality analyst Robert O'Hanlon, Partner, Deloitte & Touche.
"Dubai would require a large supply of rooms for the 2020 initiative. To host major events, such as the Olympics in 2020, Dubai will require a large stock of quality rooms to support the inflow of visitors," he said.
At the 2008 Beijing Olympics, meanwhile, there were 5,790 hotels in the city, one-fifth more than the number at the end of 2007, according to the Business Week magazine, and the 22,300 five-star hotel rooms reported occupancy levels of 77.6 per cent in Beijing for Olympics.
"Dubai has expanded its supply of quality rooms over the last decade and is, therefore, well on its way to meeting this requirement," said Deloitte's O'Hanlon.
"Hotels in Abu Dhabi and other urban centres near Dubai are also expected to benefit from the inflow of visitors into the UAE." Many of the regional and multinational hotel management chains have already announced aggressive expansion plans for the Middle East and especially for Dubai.
"We already have an aggressive expansion strategy with a target of 100 hotels by 2012. Owing to our hectic development, I would say we are on the right track to meet any challenge," said Michel Noblet, Chief Executive of HMH Hospitality Management Holdings, that manages four hotel chains including Coral Hotels & Resorts among others.
He added: "It is a great initiative from Dubai to bid for 2020 Olympics and the World Expo."
DUBAI AIRPORT GEARS UP FOR 2020
Dubai Airports is keeping pace with the 2020 initiative, said Paul Griffiths, CEO of Dubai Airports. "When the Olympic Games and World Expo come to Dubai in 2020, we will be ready," he told Emirates Business.
He said: "Dubai Airports is in step with this inspired vision and approach. Our expansion plans for Dubai International and Dubai World Central – Al Maktoum International ensure we will have the infrastructure and capacity in place to create a lasting first impression."
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