Dubai on track to open more than 34 new hotels in 2024 in tourism push

Some 34 new hotels are on track to open in Dubai this year, raising the total to 739, according to a Cavendish Maxwell report (pdf). The emirate had 716 hospitality establishments by the end of 1H 2024 to meet rising demand, with 67% of new supply in the luxury and upper upscale segments. An additional 18 hotels are expected to be completed next year.

Dubai’s hospitality market achieved an overall average occupancy of 78% during 1H 2024, representing a marginal 0.1% y-o-y increase, with the luxury and upper midscale segments logging the most significant gains. Revenue per available room in Dubai increased 4.7% y-o-y in 1H 2024, alongside a 4.6% increase in the average daily rate (ADR).

REMEMBER- Tourism is on the up in Dubai: The emirate attracted around 9.31 mn international visitors in 1H 2024. A record 44.9 mn visitors passed through Dubai International Airport (DXB) during the period, marking an 8% y-o-y increase, and prompting DXB to revise its 2024 passenger forecast up to a record 91.8 mn from 91 mn passengers.

IN ABU DHABI, RAS AL KHAIMAH, AND FUJAIRAH

Abu Dhabi City Hotels’ average occupancy rates hit 83% in 1H 2024, up 12% y-o-y from 76% in 2023, marking the highest y-o-y increase among the emirates, according to the report. Meanwhile, ADR in Abu Dhabi rose 11% y-o-y.

Occupancy rates were also up in Fujairah, modestly increasing 2.8% y-o-y to 77%, while Ras Al Khaimah logged a marginal decline of 0.3% y-o-y to 73%. ADR increased by 10.9% y-o-y in Ras Al-Khaimah and 2.8% y-o-y in Fujairah.

REMEMBER- Tourism is projected to account for 12% of GDP this year, totaling AED 236 bn. In 2023, GDP accounted for AED 220 bn of the national economy, reflecting an 11.7% y-o-y increase. However, rising operational costs and intensifying competition may pose challenges to growth, Cavendish Maxwell said.