Dubai: The focus of the hospitality industry is shifting toward Dubai.

“The central gravity of the industry has moved East,” said Christopher Hartley, CEO of the Global Hotel Alliance (GHA).

The Global Hotel Alliance has recently shifted its office from Geneva to Dubai. It brings together 19 small and medium-sized luxury hotel brands, which include India’s The Leela, US-based Mokara, and ParkRoyal in Australia and Asia.

Commenting on the move, Hartley said Dubai is an attractive location that can boost the growth of the GHA.

“It fits our business from the travel perspective. Dubai is a hospitality hub. Many brands have offices there,” he explained.

The UAE is the GHA’s fastest growing feeder market in the region.

Another factor behind the re-location is the efficiency of doing business in Dubai. The cost of doing business and acquiring efficient resources in the city is lower, compared to Switzerland, Hartley said.

“Dubai has a wealth of resources, from e-commerce specialists to business intelligence [professionals] — there are many young people there with high skills in these areas,” he said.

He added: “The cost [of resources] is better in Dubai because there are so many of them.”

Tourism hub

Dubai’s popularity with tourists worldwide means there is room for more hotel products to enter the market.

Even with the recent opening of luxury hotels, from the JW Marriott Marquis Dubai to India’s The Oberoi, Dubai is not over-stocked with hotels, according to Hartley.

“Global brands see the opportunity in the Gulf. It is fast-growing with a lot of investments coming in. The infrastructure and the growth in tourism means there is a need for more hotel stock,” he said.

Demand for hotel rooms in Dubai has remained steady in the last few years.

There are clear signs that points to the tourism sector’s recovery from the financial woes of 2008.

Dubai hotels recorded an occupancy rate of close to 90 per cent in the first half of this year.

“Other locations struggle to reach 70 to 80 per cent occupancy,” Hartley said.

With Emirates Airline expanding its network of destinations, many more tourists are expected to visit Dubai.

Passenger traffic at Dubai International Airport was up 18.9 per cent in May compared to the same time a year ago.

Additionally, Dubai’s Expo2020 vision is expected to bring up the number of tourists to 20 million a year by the year 2020 from 10 million in 2012. Hartley hopes to bring many of the alliance’s brands to Dubai to meet the demand for hotel rooms.

“Over the next five years-with the scope of 10 brands-we could bring 3,000 to 5,000 rooms to the Dubai market,” he said.

The GHA has 350 hotels worldwide.