The UAE’s hotel sector hit new highs in October on strong visitor arrivals at Expo 2020 Dubai, with occupancy rates reaching 78.8%, the highest for the month since October 2015, real estate consultancy CBRE reported Sunday.
In October 2021, hotels in Dubai recorded an occupancy rate of 80.7%, the highest in the country. Hotel properties in Dubai, Fujairah and Ajman also saw double-digit increases in average daily room rates (ADR) year-over-year, at 14.9%, 13.8% and 3.9% , respectively.
Nationwide, hotel room rates and revenue per available room (RevPAR) jumped 13.6% and 44.9%, respectively, over the same period.
“With the start of Expo 2020 and the increase in international visits, we have seen a significant increase in KPIs in the UAE,” CBRE said in its report.
Key Performance Indicators for United Arab Emirates Hospitality Market, YoY Percentage Change
The trend is expected to continue in the United Arab Emirates, CBRE said, although it acknowledged the international travel market still has “some way to go” to recover from the impact of the coronavirus pandemic.
The United Arab Emirates has seen an increase in visitor arrivals this year following the reopening of new borders and the easing of restrictions related to COVID-19.
The number of passengers passing through Dubai International Airport, the world’s busiest global aviation hub, reached 20.7 million in the first ten months of the year. By the end of 2021, the number of passengers is expected to reach 28.7 million.
“With increasing international visitation, an increasing number of global sites being re-entered into closures and a number of events scheduled for Expo 2020, we envision that international and domestic leisure tourism… will continue to support strong levels of performance across the UAE,” said Taimur Khan. , Head of Middle East and North Africa (MENA) Research at CBRE in Dubai.
However, the discovery of a new variant of COVID-19 has raised concerns about the recovery of travel and leisure markets.
Major travel destinations including the United States, Canada, Australia, the United Arab Emirates and member countries of the European Union decided on Friday to suspend flights from African countries after scientists detected a new variant that has a high number of mutations.
Stock markets fell on Friday after the variant was discovered, with airlines and other aviation market companies such as Boeing posting steep stock declines.
Globally, CBRE noted that the recovery in flight numbers has already slowed this month, partly due to “seasonality” and more recently due to the resumption of lockdown measures in recent weeks.
Last month, the number of daily flights averaged nearly 95,000. In the first 21 days of November, the number fell to around 90,500.
From January to November 21, the number of daily flights is also 28.8% lower than the levels seen in 2019.
“Although this is a marked improvement on 2020, when the average number of daily flights was 42.2% lower than the comparative figure for 2019, it is clear that the global travel recovery still has some challenges. way to go,” CBRE said.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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