Dubai: Hotels across Dubai and Abu Dhabi manage to see an increase in profitability during the slow summer period as tourists continue to spend their holidays in the UAE.
Average occupancy rates at Dubai hotels went up by 6.2 per cent last month when compared to the same period in 2015, according to the Ernst & Young (EY) Middle East hotel benchmark survey report released on Sunday.
At the same time, the average revenue per available room (RevPAR) for Dubai hotels increased by 4.5 per cent from $108 to $113.
While more guests came in, hotel rates, however, have dropped. According to the report, the average daily room rate in Dubai declined from $177 in July 2015 to $168 (Dh617) in July 2016.
In Abu Dhabi, the hospitality sector also saw occupancy rates rise from 61 per cent in July 2015 to 68 per cent in the same period this year. Profitability of hotels in the capital, as well as in Ras Al Khaimah (RAK), also went up during the same period.
Occupancy rates in RAK hotels rose from 48.2 per cent to 65.7 per cent, while the average revenue per available room moved up by 27.4 per cent. “The increase in occupancy was due to the increase in visitor arrivals from 54,155 in July 2015 to 73,326 in July 2016,” EY said in its report.
The rise in occupancy levels has been attributed to the surge in visitors to the UAE during the Eid Al Fitr holidays. A similar trend has been observed in many hospitality markets across the Middle East and North Africa (Mena) region.
“With the Eid Al Fitr holiday falling in July 2016, many of the Mena hospitality markets performed positively compared to the same period last year,” said Yousef Wahbah, Mena head of transaction real estate at EY.
Hotels across the Gulf Cooperation Council (GCC) region, with the exception of Saudi Arabia, saw revenues per room increase during the same period. In Saudi Arabia, there was a decline in RevPAR due to the change in dates of the holy month.
Outside the GCC area, hotels in Beirut and Cairo also saw an increase in guest numbers. Occupancy rates in Beirut climbed from 58 per cent to 63 per cent, although the average daily room rates got cheaper by 23.7 per cent, affecting the overall profits, with the RevPAR declining from $111 to $92.
Cairo’s hotels did much better, with occupancy rates rising by 29 per cent, room rates increasing from $133 to $144 and income per room surging from $53 to $98.
