UAE hospitality sector speeds up hiring and raises pay scales ahead of new hotel openings

Dubai: With hotels in the UAE enjoying higher occupancy levels for longer stretches in a year, it is also bringing about some major changes in the way the industry does its hiring here. No longer are recruitments limited to seasonal peaks during spring and winter, as more hotels record 40-50 per cent occupancy even in the lean phases.

Plus, with the start of the new busy season in the UAE just weeks away, the recruitment drive to fill up positions in the hotel sector is gaining some serious attention.

Plus, in the next 12-36 months, more hotels and serviced residences are scheduled to open, of which a significant number will be in Dubai and Ras Al Khaimah.

As a rule of thumb in the industry, “a 300-room hotel can potentially create 300 jobs,” said Greg O'Stean, CEO of US-based United Hospitality Management. The company owns and manages hotels in Dubai, Kuwait, and Portugal and has significant expansion plans in Saudi Arabia too.

“Larger establishments with restaurants may generate well over 500 positions, all of which are permanent too.”

More than 10 hotels opened in the UAE so far this year, and it's just an appetiser for what's to come over a 3-5 year period. 

Rising pay scales

There's also good news on the pay for hospitality professionals. Entry-level and housekeeping roles are seeing significant salary bumps of at least 20-30 per cent compared to the past two years.

Concierges, servers, attendants, and housekeeping supervisors can expect between Dh4,000 and Dh11,000 in Dubai hotels, compared to the Dh3,000 to Dh9,000 such roles would have offered in 2022-23.

Starting roles at luxury hotels offer salaries of Dh4,800 and above compared to the Dh3,500 to Dh4,000 they did two years ago. Those in more senior operational roles can expect between Dh12,000 and Dh18,000, depending on the size and branding of the hotel.

“Pay scales have increased across the board due to competition within the hospitality sector and broader labour market trends,” said O’Stean. “The hospitality sector operates non-stop, making it difficult to attract sufficiently skilled labour.

“There is fierce competition for talent.”

Additional perks

According to Sultan Baddar, the HR Director at H Hotel, says just luring talent by offering competitive packages alone won’t cut it. There is an increased focus on overall employee wellbeing to retain such individuals for longer, even fast tracking promotions, where possible.

This means the perks are getting better. Hotels are also offering employees retirement and investment plans.

“We are providing retirement plans that offer a pathway towards financial stability and paid time-off,” said Baddar. “Beyond industry-standard salaries, we prioritize the wellbeing and satisfaction of team members. These include - but not limited to - meals during working hours, transportation, and accommodation benefits.”

This is where the UAE’s near all-year long bustling hotel scene has helped, where operators emphasize talent retention where possible.

"UAE hotels aren't only bustling during spring and winter peaks anymore,” said a hospitality consultant. "Additionally, the MICE (meetings, incentives, conferences and exhibitions) scene consistently attracts large numbers (from outside the UAE.

“All this is resulting in increased demand for accommodation – and recruitment activity.”

Each month now sees multiple hotels or resorts launched or inching their way to completion and grand openings.

What UAE hotels want

The industry is seeking ‘highly-qualified’ professionals, including front-line team members. At H Hotel, new openings will seek to hire key positions such as front office managers, executive chefs, directors of sales and marketing, and for HR needs.

“A key position that is also being hired in more and more hotels is that of commercial director,” said Baddar.

Going by trends, it’s not the only role that hotels want to fill. At the earliest.