Due to the extremely hot weather with temperatures in Dubai reaching 50 degrees Celsius, tourist season is expected to see a downfall during the summer months. In order to attract more customers, most of the Dubai hotels have reduced their room rates by up to 30 percent of their usual value in January.
The average rate for a five star hotel room during the summer months is expected to be somewhere between $200 and $90, while the percentage of occupancy is going to descend dramatically by 70 to even 90 percent. The slowest period for Dubai hotels is expected to be, as usual, July when the city will see the lowest levels of occupancy not only because of the few people travelling during Ramadan, but also because of the drop in business activity in the region.
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However, the high temperatures won’t stop the thousands of tourists who will take advantage of the various shopping and recreational activities during the annual Dubai Summer Surprises. The majority of visitors will be from GCC, but many others are also expected from China, Russia and the UK. A large number of the hotel’s bookings are from guests from Saudi Arabia and another 20 percent are from Kuwait. Another source market is believed to be Australia this summer as a result of the new partnership between Dubai’s Emirates Airline and the Australian Qantas.
Rates in Abu Dhabi four- and five-star hotels will be even lower, around $100, which is roughly a 30 percent fall from January-April’s $165. Unlike Dubai, the market in Abu Dhabi is mainly fueled by corporate activity which slows down during the summer.
Improved Performance
Compared to last year, hotels in Dubai are expected to see greater occupancy this summer, with an average rise of 15 percent. Room rates are also expected to climb by 10 to 15 percent from the same period last year. Abu Dhabi is believed to record similar results, which means that the hospitality sector in both emirates is improving.
