Dubai hotel occupancy rate reaches 80.7% thanks to high number of visitor arrivals during Expo

The UAE hospitality sector hit new highs in October due to high visitor arrivals at Expo 2020 Dubai, with occupancy rates reaching 78.8%, the highest of the month since October 2015, real estate consultancy CBRE reported on Sunday.

In October 2021, hotels in Dubai recorded an occupancy rate of 80.7%, the highest in the country. Hotels in Dubai, Fujairah and Ajman also recorded average daily room rates (ADRs) showing double-digit year-over-year increases to 14.9%, 13.8% and 3.9% , respectively.

“With the start of Expo 2020 and the increase in the number of international visits, we have seen a significant increase in key performance indicators in the United Arab Emirates,” CBRE said in its report.

KPI for the UAE hospitality market,% change year-on-year

The trend is expected to continue in the United Arab Emirates, CBRE said, although it recognizes that the international travel market still has “some way to go” to recover from the impact of the coronavirus pandemic.

The UAE 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 footfall, an increasing number of venues around the world being blocked again and a number of events scheduled for Expo 2020, we expect international and domestic leisure tourism…, Head of Research to Middle East and North Africa (MENA) at CBRE in Dubai.

However, the discovery of a new variant of COVID-19 has raised concerns about the recovery of the travel and leisure markets.

Major travel destinations, including the United States, Canada, Australia, the United Arab Emirates and member countries of the European Union, on Friday decided to suspend flights from African countries after scientists detected a new variant containing 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 registering significant drops in their shares.

Global trend

Globally, CBRE noted that the recovery in the number of flights has already slowed this month, partly due to “seasonality” and more recently due to the resumption of lockdowns in recent weeks.

Last month, the number of daily flights reached an average of almost 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 from 2020, when the average number of daily flights was 42.2% lower than the 2019 comparative figure, it is clear that the global recovery in travel has still had some effect. way to go, ”CBRE said.

(Written by Cleofe Maceda; edited by Seban Scaria)

Disclaimer: This article is provided for informational purposes only. The Content does not provide any tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer here.

© ZAWYA 2021

Source link