Cluttons Middle East: Dubai's hospitality sector shows healthy signs of recovery
Cluttons, the real estate specialist that has enjoyed a dedicated Middle Eastern presence since 1976, today announces its market report for Dubai's Hospitality sector in Q2 2011.
According to the report, Dubai's hotel sector has benefited from the Emirate's political stability within the Middle East region, with strong performance in occupancy levels and length of stay. With a total of 8.3 million visitors in 2010, Dubai is still proving to be a popular and an attractive destination among tourists and visitors.
An increase in affordability as a tourist destination has clearly helped Dubai's comeback. Despite short to medium-term recovery risks; optimistic sentiment about local market conditions continues to increase with monthly occupancy levels showing Q1 2011 nearly matching Q1 2008 figures - which was pre-economic slowdown. The flexibility and consistent performance in Dubai's hospitality industry and other sectors has helped to reduce economists' fears of a double-dip recession in the UAE.
Steven Morgan, Head of Cluttons UAE comments, "Occupancy rates and lengths of stay have enjoyed considerable growth. However, to what extent Dubai's current performance is being buoyed by the recent political uncertainty in the region is not yet known and it is unclear how long this situation will continue. In the short term, Dubai seems likely to out-perform in the tourism market this year."
With over 52,000 hotel rooms, Dubai can confidently cater to the 8.3 million visitors that passed through in 2010, however with 10,000 rooms to be delivered in 2011, and an additional 30,000 rooms in the next three years, the major downside risk for the sector in the medium to long-term still remains to be a case of oversupply.
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