Jumeirah chief says room rates will not fall as more hotels open

Dubai: Dubai currently leads global hotel statistics with an average room rate of $283 in 2007, according to Gerald Lawless, executive chairman of Jumeirah Group.

Meanwhile, other Gulf cities also topped the $200 mark. Lawless said he does not anticipate any fallout in rates as hotel room stock increases across the region.

"The average rates we are now enjoying may level off, but I don't see them decreasing," he said.

He went on to note that demand for hotel accommodation is healthy and not reliant upon one customer stream: "The region has wisely spread its attention across multi-faceted projects such as Burj Dubai, The Palms in Dubai, The World islands, Dubailand, Dubai Sports City, Festival City and Healthcare City."

"Dubai, particularly, has interwoven its residential projects with sector-specific master plans such as Dubailand, Sports City and a wide variety of commercial cities. It has shown how to successfully pull visitors from all sectors, including commerce, family tourism, meetings, events and exhibitions," he said.

Lawless said he believes occupancy rates and levels can be maintained: "Dubai remains an opportunity as it develops as a true, multi-interest destination that will more than double in size, as will the local-based airline, Emirates."

However, Lawless warned that when it comes to promotion, "one size no longer fits all".

"Promotion was once successful if generic across all audiences but now with all these projects and offerings we have to adjust our message accordingly. "We have to target specific profiles and markets with specific messages," he said.

Referring to the recent upheavals in global financial markets, Lawless was optimistic that the Middle East will ride out any recession, pointing to its international dimensions to substantiate growth.

"What the region has done is to emphasise the need to look for new market segments, not just the traditional markets."

"At Jumeirah, for example, we are looking at Asia in general, and China and Japan in particular - we have already received high-end groups from the former at Burj Al Arab and this type of business will be enhanced with an approved-destination status for the UAE."

Another key market in future could be the Americas, he predicted.

However, while the region is gearing up to take its place as one of the world's major business and leisure hubs, Lawless said elements such as environmental and sustainability issues, as well as human resources would be key in achieving continued success.

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