According to the research of the analytical company EY, the hotels of the Middle East demonstrated stable growth of the indicators in the first quarter of 2018.
The hotel industry in Dubai also demonstrates good prospects for the tourism industry in the emirate. According to the results of the first quarter, Dubai had the highest occupancy rate (86.9%) for hotels.
It should be noted, that 80 new projects of hotel real estate are planned to 2018.
A number of changes occurred in the UAE visa system.
According to experts and government officials, this should increase the development of the tourism and travel industry, which, in turn, will attract additional investment in hotels and related industries.
So, according to the new rules, transit passengers are exempt from any duties and receive visas for 48 hours free of charge, which can also be extended to 96 hours, but at an additional cost. Thus, transit passengers, who are in the country for additional time, automatically turn into tourists who may be interested in local attractions, amusement parks, shopping centers, etc. In other words, this measure will allow many guests to consider the additional time of their stop as an interesting opportunity to get acquainted with the city.
Reduction of service charges from 10% to 7%
Another important decision that will positively impact the prospects of Dubai’s tourism industry is a 3% reduction in service charges. According to the hoteliers, this will make the hotels of the emirate more accessible, which is especially necessary with the fact of the recent introduction of VAT in the country.
Now service charges in hotels and restaurants of the emirate will be not 10%, but 7%. This step will make Dubai more attractive not only for tourists, but also for investors interested in its tourism and travel industry.
Analysis of the hotel real estate market in the UAE and related industries allows us to conclude that in 2018, the recreation industry will ensure the continuation of the stable development of the hotel sector of the country. At the same time, competition will increase.
Greater stability should be expected from submarkets, focused on recreation, and new hotels. Old hotels will have to be updated to compete with the new offer of the industry.
So, it can be concluded, that Dubai has achieved the highest rates due to increased attention to business tourism, entertainment attractions, exhibitions and conferences, a variety of proposals in the hotel market and the revision of visa policies.