Consumer demand drives increase in hotel capacity


DUBAI’s Department Tourism and Commerce Marketing (DTCM) has released figures showing that overwhelming consumer demand and a consistent rise in occupancy figures is underpinning a massive drive to increase hotel capacity in the emirate.

It states that the number of hotel rooms in Dubai is projected to increase exponentially to accommodate the projected upsurge of 15 million tourists anticipated by 2015 compared to 6.9 million in 2007. A total of Dh451.3 billion ($123 billion) is currently invested in tourism projects in Dubai with the sector directly contributing to 18 per cent of the emirate’s economy.
The number of hotel rooms in Dubai is predicted to increase by 50 per cent to 22,000 by the year end and is driven by the ever-increasing number of international visitors to Dubai. The DTCM commented that this year 22 hotels are scheduled to open with seven hotel apartments adding a total of 10,000 rooms to the inventory.
“Dubai is in the enviable position of sustaining a very strong increase in the number of international visitors year on year. Achieving world record hotel occupancy and revenue levels last year speaks volumes about the buoyancy of the emirate’s tourism sector,” commented Ian Scott, director of the UK and Ireland representative office of Dubai Tourism and Commerce Marketing (DTCM).
As one of the world’s leading tourism destinations, the emirate’s progressive spirit has resulted in a rapid pace of progression that continues to drive visitor demand and the tourism industry even further. Dubai's fast expanding portfolio of hotels and hotel apartments recorded a hike of 25.8 per cent to 50,306 units in 2007 and is forecast to rise 3.4 per cent by 2010 at 63,317 units and jump to 48.2 per cent by 2016 when the total units will cross 93,867.
Hotel revenues in Dubai rose 15.7 per cent to Dh12.4 billion ($3.38 billion) in 2007, up from Dh10.9 billion ($3 billion) in 2006 and with an all time record 6.9 million guests staying in Dubai hotels in 2007 the outlook for the emirate’s tourism sector promises to be spectacular.
Many of the world’s leading hotel operators are developing flagship properties in the emirate which is leading a sustained increase in visitor numbers to Dubai. Forthcoming developments which are setting the standard for hotel development include Atlantis The Palm and Desert Palm both scheduled to open later this year and the world’s first Armani Hotel, scheduled to open in the Burj Dubai tower in 2009.