Dubai hotel room rates register biggest decline in over four years | Push Digits Chartered Accountants

Dubai hotel room rates register biggest decline in over four years

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Dubai’s hotel services experience their greatest lull in over four years, as the Emirate’s expanding supply of hundreds of attractive eateries entices visitors far from the posh, costly dining options at hotels. Meanwhile, in Egypt, the tourism industry registers notable successes.

Since much of the populace presently prefers spending their time and money at usual restaurants to dining at hotels, the food and beverages’ revenues of Dubai’s hotels are largely suffering. These deals dove a month ago by 19.8 and 26.7 for every penny, separately, while the gross working profit per accessible room declined 19.5 for each penny to $273.13 in April, which contrasted with the same period a year ago.

In the month of April, the rate of Dubai’s hotel rooms fell 12.8 for every penny year-on-year over four and five-star properties to touch $373.78, as indicated by the Hotstats figures. In contrast, Dubai’s neighbour, Egypt, experienced a growth of 20% in room rates. Chris Hewett, a senior advisor at TRI Consulting, which distributed the Hotstats figures, says that because of the falling prices of the Russian currency, the spending inclination of customers from these significant markets has been brought down, which is one reason why Egyptian hotels are presently seeing more and more guests.

Dubai hotels now have endeavoured to launch more rooms. By the end of December, they launched 92,333 rooms, a growth of 9.2% over the number of available rooms in 2013, and right after that, in January, the hotels added 697 rooms. Despite these changes, the industry is yet to see any effective improvements.

Samir Arora, the general manager of the Ramada Downtown Hotel, obtained most of his money from the UAE, UK, Qatar, Kuwait, and Saudi Arabia, as those regions are his most notable markets. Shedding light on the present situation of the hotel industry of Dubai, Arora says that every hotel is keen on lowering their prices; the industry has become very competitive, in particular, with Egypt. Additionally, the new hotel rooms and dining options are also pressuring the businesses to keep their profit margins in line. Nonetheless, Arora feels that even though Dubai’s hotel industry is going through trembling business conditions, one positive side is that the falling room rates and the addition of new rooms has opened doors for new customers from places like Eastern Europe, China, and India, customers who respond well to falling prices.


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