Business | Tourism
Dubai's hotels expect increase in revenues
Hotels in Dubai say they are expecting better revenues this year despite lower occupancy than 2005.
- By Shakir Husain, Staff Reporter
- Published: 00:00 October 26, 2006
- Guests in the Grand Hyatt Hotel. Dubai's hoteliers say they are expecting better revenues this year despite lower occupancy rates than 2005.
- Image Credit: Devadasan/Gulf News
Dubai: Hotels in Dubai say they are expecting better revenues this year despite lower occupancy than 2005.
According to a spot survey of several hotels by Gulf News, there appears to be an industry-wide consensus that 2005 was a record year in terms of occupancy.
The cancellation of the Dubai Shopping Festival and slow summer period contributed to lower occupancy this year.
Dubai's hotels also felt the impact of US-Iran tensions and the war in Lebanon.
"Yes, 2005 was a fantastic year. For the Novotel World Trade Centre 2006 has been better than 2005 in terms of revenues. This is mainly due to slightly higher rates and better yield. Occupancy is a few points down on last year," said Anthony Peter Slewka-Armfelt, director of sales and distribution for Accor Middle East.
He said said Novotel is up around 15 per cent in revenue over last year.
Fadi Mazkour, business development director of Coral International Hotels, Resorts & Spas, said there has been a slight drop in occupancy but the average room rate is better than last year.
"So when we compare this year's figures with last year's, the total revenue is more or less the same," he said.
He said the period from June to September was quite challenging for his hotels. Due to the football World Cup in Germany, there was a drop in the number of people travelling from Europe, one of the main feeder markets for the group.
Demand for hotel rooms also slipped during the holy month of Ramadan and some hotels extended their lower summer rates for the period.
Hoteliers believe higher occupancy during November and December will make up for the summer slowdown.
"Compared to our budgeted figures we are on target to see growth in 2006. The months of November and December look very strong for the UAE and we are expecting a strong finish to the year in terms of revenues," said Craig Senior, from Rezidor SAS Hospitality.
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