Dubai: Hotel revenues in the UAE continued to drop last month, mainly due to the decline in average room rates, according to the latest report from global consultancy EY.
In Dubai, revenue per available room (RevPAR—an industry measure of occupancy and rates) declined 7 per cent to Dh682 in May over the same period in 2015. Average daily rates (ADR) decreased 5.4 per to Dh812 and occupancy edged down 1.5 per cent to 84 per cent year-on-year in May.
Meanwhile in Abu Dhabi, RevPAR dropped 8.9 per cent year-on-year in May to Dh341.
“While occupancy rates remained high in both Dubai and Abu Dhabi, their hospitality markets witnessed a decrease in revenue per average room…in May 2016. This was mainly due to the drop in average daily rates in both cities,” stated Yousuf Wahbah, Head of Transaction Real Estate for the Middle East and North Africa, at EY.
Similarly year-to-date, RevPAR fell 9.7 per cent to Dh868 in Dubai, and 17.9 per cent to Dh408 in Abu Dhabi.
In Ras Al Khaimah, the drop in RevPAR was 11.4 per cent to Dh401 in the January to May period, and 10.1 per cent year-on-year in May to Dh93.
Elsewhere in the region, RevPAR plummeted in Beirut and Cairo by 18.4 per cent and 54.3 per cent respectively year to date.
But overall, Middle East hospitality markets are weathering the economic conditions well, Wahbah said. “The favourable weather, regional business conferences and leisure destinations across the region continue to attract tourists into the Middle East.”
