I’ve typically puzzled what number of motels Dubai, Abu Dhabi or Saudi Arabia can maintain. Regardless of many years of expertise within the hospitality sector, I’m not positive. And I can’t be the one one.
The query has been on individuals’s minds for years – ever since Dubai emerged as a tourism vacation spot within the late Nineteen Nineties. How a lot is sufficient? When will it cease? Even the cleverest forecasters have gotten it mistaken.
Up to now in 2024, efficiency by motels in each Dubai and Abu Dhabi has continued to develop on the again of elevated demand, outpacing many regional and international locations.
Dubai motels function on increased total efficiency ranges, largely pushed by their increased common each day charges, which exceeded $270 within the excessive season.
Nevertheless, Abu Dhabi is catching up. Occupancy within the emirate has grown by 10 % yr on yr whereas room charges have risen by 13 %.
Dubai, a a lot greater vacation spot with extra rooms, has largely been in a position to drive resort price development at 5 %, with occupancy rising by 1 % thus far in 2024.
Dubai, particularly, has stunned us. Regular requirements don’t apply within the metropolis that has one of the strong resort markets on the earth.
In 2023 Dubai had greater than 138,000 resort rooms.
Now, even within the historically off-season, occupancy and common each day charges are rising. Regardless of April’s catastrophic floods, town is bettering its infrastructure.
The Dubai Metro, so long as it took to construct, is a large success and goals to alleviate the heavy visitors on the roads.
The emirate’s combine of tourists is attention-grabbing. India, Oman, Saudi Arabia and the UK are the 4 strongest incoming markets, and collectively characterize 38 % of the 17.15 million individuals who visited Dubai in 2023.
The strategy of the Abu Dhabi authorities from the outset has been considerably totally different from its sister emirate. The UAE capital focuses extra on cultural tourism, with points of interest such because the Louvre Abu Dhabi and upcoming tasks on Saadiyat Island.
The UAE capital additionally affords many leisure points of interest, equivalent to Remark Deck 300, which at 300 metres excessive is the tallest vantage level within the metropolis. Ferrari World and Yas Island are all driving occupancy.
In keeping with current information, Abu Dhabi has 30,951 resort rooms. This quantity is anticipated to develop, albeit at a slower tempo than in Dubai.
Saudi Arabia is quickly increasing its resort capability. Tourism performs a serious position in realising the diversification foreseen in Imaginative and prescient 2030 by way of its giga-projects.
Due care must be taken to protect and nurture the dominion’s pure and historic websites, resisting the temptation to show these into mass tourism centres. The dominion goals so as to add a whole lot of 1000’s of rooms within the subsequent decade; Mecca alone is because of open one other 13,043.
As Saudi Arabia’s resort market expands, yields could drop due to heightened competitors and the necessity to construct demand. Nevertheless, because the tasks mature and tourism will increase, we count on yields to stabilise and improve.
Dubai, Abu Dhabi and Saudi Arabia have vital potential to maintain massive numbers of motels due to their strategic planning and ongoing mega-projects. Comparatively, their resort markets are extra aligned with high-end locations equivalent to Singapore quite than mass-market resorts in Europe.
Whereas yields could fluctuate, particularly in increasing markets equivalent to Saudi Arabia, focused segments equivalent to luxurious, cultural and eco-tourism provide substantial development alternatives.
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