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Prospects for Dubai’s hotel sector look positive until 2023: KPMG

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Dubai’s hospitality sector has rebounded strongly post-pandemic, with leisure and business travel, including MICE (Meetings, Incentives, Meetings and Events), on the rise in 2022, according to a report.

By the end of the expo, hotel occupancy in Dubai was at its highest level in 15 years, with the emirate’s tourism contributing $29.4 billion to the economy in 2022, according to the latest KPMG Dubai hospitality report.

The government’s strong Covid-19 response plan and the hotel industry’s commitment to complying with government health and safety requirements has boosted the UAE’s status as one of the safest countries in the world, with 90% of respondents expressing concern about implementing the policy across the country Confident hotel in Dubai.

This enhanced guest sentiment is reflected in hotel occupancy rates, with 92% of consumers expecting to stay at hotels in Dubai in 2022, up 37% from the previous year.

Sidharth Mehta, Partner and Head of Real Estate, KPMG Lower Gulf, said: “Dubai’s hospitality sector will see significant growth in 2022, driven by the government’s forward-looking vision to meet the needs of all hospitality stakeholders. In addition, the UAE is investing about $32 billion to buy more than 48,000 hotel rooms, bringing its total to 200,000. These developments put the UAE in an enviable position to meet the needs of the tourism and hospitality sector by 2023, while driving economic growth through job creation .”

The UAE also has the highest occupancy rate among the GCC countries in 2022. Dubai’s occupancy rate rose from 64.7% to 72.5% by November 2022. At the same time, the ADR (Average Daily Rate) increased significantly from AED550.87 (US$150) to AED674.25, or 22%. From November 2021 to 2022 year-to-date, RevPAR (Revenue Per Available Room) increased from AED356.42 to AED488.79.

Other notable trends for 2022 include digitization and sustainability, which operators say are their priority areas. Many are also moving away from plastic bottles, reducing carbon emissions and promoting inclusivity and diversity.

Meanwhile, contactless check-in, customers receiving keys via mobile phones, and other emerging technologies will dominate the hotel industry by 2023. – trade arab news agency

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