Business | Tourism
Market turmoil leads to low hotel occupancy
Hotel occupancy in Dubai decreased by 4.1 per cent to 79.6 per cent from January to October this year from 83 per cent in the same period last year, according to Smith Travel Research's monthly benchmarking report.
- By Natasha Marrian, Staff Reporter
- Published: 00:02 November 27, 2008
Dubai: Hotel occupancy in Dubai decreased by 4.1 per cent to 79.6 per cent from January to October this year from 83 per cent in the same period last year, according to Smith Travel Research's monthly benchmarking report.
Hotel occupancy for the month of October was up marginally from 79.9 per cent in 2007 to 82.8 per cent this year.
Alpha Tours chief executive Ghalid Aridi on Wednesday said there was definitely a drop in hotel occupancy in recent months, a consequence of the worldwide financial slowdown.
He said Dubai was accustomed to exceptionally high occupancy levels. The recent dip in occupancy levels, therefore, did not have a "dramatic" impact on the sector.
"There is definitely a drop but its effects are not that dramatic, bearing in mind that last year there was a shortage. Dubai is still doing well, if you compare it with the countries hardest hit by the financial crisis," he said.
Despite the downturn there are around 240 hotel developments expected to spring up in GCC countries between 2008 and 2011. Around 133 of these developments are in the UAE, adding around 42,400 rooms. This is according to Raj Bhatt, director of Hozpitality.com an online hospitality career portal which was launched yesterday.
Bhatt said he did not expect the "buoyant" hotel sector in the UAE and the GCC to be hit hard by the financial turmoil.
"It's just the fear factor making people cautious. Once the fear factor blows away, things will get better. There is still money in the market; it's just that it is not moving. The money in the market can't just vanish," he said on the sidelines of the launch.
His online human resources portal would provide staffing to hotels and the hospitality sector in general.
Bhatt said he did not expect the crisis to cause job losses in the hospitality sector. Rather, a "correction" would take place where prospective employers would recruit less than in the past.
"What about all the new hotels coming up? They are going to need staff. The hotels have to open," he said.
Aridi did not anticipate large job cuts in the hotel sector either.
"There will not be large job cuts, hotels might have to look at changing their strategy. They had very high prices in the past and not that demand has decreased, that may be adjusted," he said. Hotel developments in the pipeline would also be reviewed, he added.
"Some will be delayed. There might be projects postponed or even cancelled as people wait to see how things develop."
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