Dubai and Abu Dhabi hotel growth slows

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Dubai and Abu Dhabi hotel growth slows
The slowdown of growth in Dubai's hospitality sector may be attributed to the decline in tourists from Europe.

Dubai - The slowdown of growth may primarily be attributed to the decline in tourists from Europe.

By Rohma Sadaqat

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Published: Sun 8 Nov 2015, 11:00 PM

Last updated: Mon 9 Nov 2015, 8:26 AM

Dubai and Abu Dhabi's hospitality markets witnessed a drop in revenue per available room (RevPAR) performance in September 2015, when compared to September 2014, according to the EY Middle East Hotel Benchmark Survey Report for September 2015.
The slowdown of growth in both Abu Dhabi and Dubai's hospitality sector may primarily be attributed to the decline in tourists from Europe, as a result of the economic slowdown in the eurozone, the weakening of the euro and an increase in the supply of hotel rooms.
In September 2015, Abu Dhabi's average occupancy rate dropped by three per cent, when compared to the same period last year. Average daily room rates (ADR) also declined by 9.1 per cent from $136 in September 2014 to $124 in September 2015, causing RevPAR to fall by 12.3 per cent in September 2015, when compared to the same time last year.
Dubai's overall hospitality market has observed a drop in RevPAR by 3.4 per cent in September 2015, when compared to the same period last year, mainly due to ADR dropping by four per cent from $202 in September 2014 to $194 in September 2015.
In September, Ras Al Khaimah's hospitality market witnessed a double digit increase in RevPAR of 55.5 per cent, when compared to the same period last year. This was mainly due to the increase in ADR from $98 in September 2014 to $141 in September 2015. Occupancy has also increased from 58.3 per cent in September 2014 to 63 per cent compared to the same period last year.
This could be attributed to the effort of Ras Al Khaimah's Tourism Development Authority that continues to promote RAK as a primary affordable luxury destination.
The highest year-to-date 2015 figures were reported from Dubai beach hotels, recording an average ADR of $352 from January to September this year. Dubai beach hotels continue the trend of being the highest yielding market in Mena, with a RevPAR of $280. The highest market performance was also observed in Dubai - overall at an occupancy of 79 per cent year-to-date.
- rohma@khaleejtimes.com


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