Dubai traffic pushes hotel occupancy up

Dubai: Hotel occupancy in the UAE hovered around 73 per cent last month — ahead of major European cities — bolstered by Dubai and Abu Dhabi's increase in visitors in the first quarter.

According to STR Global, occupancy figures in the UAE are down by one per cent while the average daily room rate dropped to Dh870 in March, compared to the same period last year.

Revenue per available room (RevPAR) was also down by around 9 per cent.

However, Dubai's performance records a plus in occupancies from 71 per cent to 79 per cent. This was achieved by lowering daily room rates to an average of around Dh900 or three per cent less than during the same period last year.

Dubai's RevPAR was up by 4.4 per cent, while DTCM's soon-to-be-released-figures are expected to reflect a good first quarter performance.

Slight growth

"Our sources tell us that performance is at or slightly better than 2009 levels, mainly sustained though GCC and group business," John Podaras, associate director at TRI Hospitality Consulting Middle East, said.

"I believe that STR have indicated slight growth in RevPAR over the first two months which seem to bear out these reports."

Towfiq Tamim, vice-president of sales and marketing in the Middle East for Mövenpick Hotels & Resorts Management, said Mövenpick Hotel Bur Dubai enjoyed a 10 per cent rise in occupancy compared to the first quarter of 2009.

"However, average rates remain low and are even lower, by 20 per cent than the last year," he added.

Naeem Darkazally, area director of sales and marketing at Rotana area sales office in Dubai and the northern emirates, said: "We have seen an increase of five per cent in occupancy at our hotels [along] Shaikh Zayed Road compared to the first quarter [of] last year."

"Higher occupancy figures hovering around 80 per cent — seen as an average for all our twelve hotels in Dubai — came at the expense of lowering our rates, which were abnormal anyway in my view... " he added.

"We're, according to a recent announcement by the DTM, still the city with highest average room rates globally," Darkazally said.

"You have to walk harder and think outside the box to attract guests. And they are coming as rates are now more affordable. Compared to last year we're seeing a strong recovery in the Mice segment meaning business confidence is coming back," he said.

"I expect that the fourth quarter, with many exhibitions in October and Nov-ember will be doing even better. The line is pointing upwards."

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