UAE predicts $10.9 billion of hotel revenues by 2019
Profits for the UAE hotel industry are expected to rise by nearly two-fold in a span of six years. (AFP/File)
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The annual revenues of hotels in the UAE are predicted to record a two-fold increase to $10.9 billion in 2019 from $5.9 billion in 2013.
Visitor attraction revenues are also forecast to double from $521 million recorded in 2013 to over $1.2 billion by 2019, a report published by Euromonitor International ahead of The Hotel Show and The Leisure Show Dubai 2015 opening today.
In 2015, UAE hotel revenues are forecast to reach $7.3 billion, while visitor attraction revenues will hit $ 638 million. The UAE is the number one market in the Middle East and North Africa in terms of hotel room revenues, with over three times the amount recorded for Saudi Arabia and Egypt. The UAE also leads the region in new hotel construction, said Christine Davidson, group event director of the dmg events hospitality portfolio.
Saudi Arabia currently leads the market for visitor attractions with $4.6 billion in revenues forecast for 2015 versus $638 million for the UAE. "But with massive leisure development currently underway across the UAE including five theme parks, three major museums and two safari parks, UAE's visitor attraction revenues are forecast to almost double to $1.2 billion by 2019. As more developments enter the pipeline, including last month's announcement of the record-breaking Meydan One project featuring the world's largest indoor ski slope, the UAE's future for leisure and entertainment tourism looks exceedingly good," said Davidson.
According to a study by investment bank Alpen Capital, the UAE's hospitality industry is expected to grow at a compound annual growth rate of 10 per cent between 2013 and 2018. In the GCC, the sector is forecast to grow to $35.9 billion by 2018 from $22.8 billion in 2013, at an annual rate of 9.5 per cent. The Hotel Show and The Leisure Show Dubai, running till 28 September are expected to draw 18,000 professionals to the Dubai World Trade Centre.
The two shows have new features that reflect the region's evolving hospitality and leisure landscape. These include a Technology and Security Summit, TecSec, which opens with a keynote by NEC Global and talks from other major tech brands Google, Cisco, and Sabre.
A new Design Theatre, by leading Italian architects WT Studio, features "Hotel as Opera by Simone Micheli", an Italian architect renowned globally for futuristic hotel designs, plus a host of other names in international design. The Leisure Show's The Hub will open with Dubai Sports Council and follow with Technogym, Yas Waterworld, Fluidra Middle East and others with presentations and workshops on sports and fitness, pools, spas and theme parks in the region.
The shows have a line-up of a diverse range of over 600 exhibitors representing the full scope of products and services needed to build, fit-out and maintain hotel and leisure facilities. The events will witness the launch of several product and services for the hospitality and leisure industry. The first "motorised luggage trolley" and "full body dryer" in the market are among the new products to be unveiled at the shows. One of the leading global interiors and contracting companies and The Hotel Show's Interiors Partner for 2015, S&T, will unveil a new brand and a design and build fit-out concept with an official unveiling on the second day of the event.
K.S. Ravikumar, executive director — International Operations at S&T said the hospitality industry is increasingly seeing the use of modern materials like glass, steel etc. while the use of wood and traditional finishes is getting confined to public areas. "S&T with its global operations and expertise brings a wide array of innovative interior fit-out solutions. This year, we will be presenting a unique Design and Build concept by combining 3Ms i.e. Materials, Methods and Management to provide turnkey solutions with a difference. We are certain our concept will take the science of execution to the next level."
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