Dubai’s new airport to drive growth for Dubai Parks and Resorts, say hoteliers

Dubai: Dubai’s hospitality sector, especially properties at Dubai Parks and Resorts, is set to experience a significant boost once the expansion at Maktoum International Airport is complete, according to hoteliers.

The anticipated opening of the new airport is expected to drive visitor numbers and benefit Dubai Parks and Resorts as a whole, said Faiek El Saadani, General Manager at Lapita, Dubai Parks and Resorts, Autograph Collection.

He explained, “While UAE-hosted mega-events (such as the Dubai Expo 2020 and COP28) have not directly translated into increased footfall for Lapita, the anticipated opening of the new airport is expected to drive visitor numbers and benefit Dubai Parks and Resorts as a whole.”

El Saadani added, “In the interim, strategic efforts are being made to continue building footfall and strengthening the resort’s market presence.”

The proposed passenger terminal at Dubai World Central is designed to meet future travel demand, with an initial capacity of 150 million passengers, expandable to 260 million upon full completion.

Dubai Parks and Resorts growth story

While the destination is still evolving in the market, it benefits from its proximity to theme parks (Dubai Parks and Resorts) and growing footfall. The top three source markets for the hotel are CIS, the UK, and Germany, with new target markets including Africa, Finland, and France.

El Saadani said there are no immediate plans to open a second Lapita resort. “Instead, the focus is on elevating the current property through staff training and product upgrades, including enhancements to rooms, restaurants, and overall infrastructure,” he said. A budget of Dh10-20 million has been allocated for these improvements over the next few years.

Lapita’s full-year occupancy in 2023 was 61 per cent, with a strong outlook for 2025. “The supply for Q1 2025 was a remarkable 81 per cent, with an annual projection of 65 per cent,” he added.

From 4-star to 5-star status

Established in 2017, Lapita was initially positioned as a four-star hotel due to Dubai’s incentives to increase mid-range hotel supply. Late last year, Lapita received its official recognition as a five-star resort. “The decision to apply for five-star reclassification was based on market demand, guest expectations, and the need for diversification,” said El Saadani.

He explained, “The hotel’s room sizes already met five-star standards, requiring only product enhancements and investments to meet classification criteria. Achieving five-star status boosts its appeal compared to destinations like Palm Jumeirah, where travellers might otherwise choose to stay for a similar price.”

While some critics have suggested that the current hotel rating system may be outdated, maintaining global standards is crucial to preserving Dubai’s reputation as a top international destination.

“While some may argue that the current rating system is outdated, maintaining global standards is essential,” said El Saadani. When asked if the UAE and GCC countries stand to gain from establishing their rating system, El Saadani said, “A separate Gulf hotel rating system could create more confusion rather than streamlining the process.”