Abu Dhabi: Average occupancy in four and five-star hotels in Abu Dhabi and Dubai during the Eid holiday is expected to hit 90 to 95 per cent — up from the average of 80 to 85 per cent that is expected during October, according to an analyst.
With such demand for hotels, room rates are expected to jump significantly during the holiday, with room rates at some popular hotels more than doubling during peak days.
“Average rates during the month of October [2013] when Eid fell was one of the highest last year at $155.40 (Dh570.32), just one per cent higher than the annual Average Room Rates (ARR) for the year, but 23.3 per cent higher than the ARR for the previous month (September 2013),” said Rashid Aboobacker, senior consultant at TRI Hospitality Consulting.
He added, “In Dubai, the ARR for October 2013 was 18 per cent higher than the full year ARR, and nearly 60 per cent higher than that of the previous month.”
In an interview with Gulf News, Aboobacker said that such demand for hotels during the Eid is dominated by GCC travellers, mainly from Saudi Arabia, Kuwait, and Qatar who opt to spend their break in the UAE.
During the Eid holiday, Dubai and Abu Dhabi have also been attracting a large number of visitors from the Indian sub-continent.
“Eid Al Adha is traditionally one of the two most important festivals in the region. A large proportion of the residents tend to travel during this time, either within or outside the region to enjoy the long holidays,” Aboobacker said.
With UAE residents typically getting shorter holidays than neighbouring countries like Saudi Arabia and Qatar, popular holiday destinations for residents tend to be towards countries that are not geographically far.
“The strongest demand from holiday makers is considered to be for more affordable and closer destinations in the Levant [such as] Turkey and Jordan, as well as Egypt, and [Asian countries like] Sri Lanka and Thailand,” the consultant said.
With an increasing trend towards staycations, many Abu Dhabi and Dubai residents tend to head to other emirates like Ras Al Khaimah and Fujairah, which offer beach resorts at lower costs. Oman is also known to be a popular destination for residents of Dubai and Abu Dhabi.
With many residents preferring to spend the holiday with their families in their home countries, air traffic towards the Indian sub-continent is also expected to increase this Eid.
Noushad Azeez, manager at Land of Holidays travel agency, noted that Seychelles has become of the hottest destinations for Abu Dhabi residents, especially with the collaboration between Etihad Airways and Air Seychelles, which has eased travel to the destination.
“The weather in Dubai and Abu Dhabi still isn’t that good, so many people go to resorts in the Northern Emirates or Al Ain where hotels are now fully booked, and it is mostly expatriates who are booking there,” he said.
Full occupancy
Meanwhile in Dubai, many hotels are expected to record full occupancy during the Eid weekend, Aboobacker said.
“Many of the upscale hotels located in prime locations closer to the shopping and entertainment facilities like the Downtown, Al Barsha, Dubai Marina/JLT and Jumeirah are expected to report full occupancy during the Eid weekend,” he said.
Hotel occupancy levels for four- and five-star hotels in Dubai have been marginally lower this year compared to last year, despite the growth in demand, primarily due to the growth in supply, Aboobacker said, citing a a HotStats survey, published by TRI Consulting.
“Nevertheless, based on the recent trends and historical performance, occupancy for the month of October is expected to remain in the 80-85 per cent range,” he said.
Accor’s hotels in Dubai are likely to post 85-95 per cent occupancy between Saturday and Wednesday, “slightly softer” compared to the same period last year, according to Olivier Hick, the French hotel chain’s vice president of operations in the Gulf and Levant.
He attributed the slighltly lower performance to rising hotel room supply in the emirate and the increasing demand for some countries in the region.
“Desinations like Egypt are back,” he said.
Similarly, Gerald Lawless, President and CEO of Jumeirah Group, stated that Jumeirah’s hotels normally enjoy high occupancy levels during Eid.
“During this period, Jumeirah hotels and resorts traditionally enjoy very high occupancy levels and also offer their guests various cultural activities to enjoy and make their holidays an enriching experience,” he said.
Some hoteliers said food and beverage revenue is likely to get a boost during Eid as restaurants at the property are expected to be full.
Enad Tannous, general manager of Amwaj Rotana at Jumeirah Beach, said the hotel’s food and beverage revenue is likely to grow by 5-10 per cent during the holiday compared to the same period in 2013.
“Our restaurants are expected to be full, particularly since there will not be as long a break as there was last year, we are not expecting guests to travel and will therefore, visit the hotel to dine,” he said.
With inputs from Sarah Algethami, Staff Reporter
