Skift Take
As Dubai deals with the disruptions for planning for Expo 2020, the tourism authority is leaving no stone unturned to market the destination on a global level. But while tourism volumes are increasing steadily, the hospitality sector needs to work toward bumping its rates back up.
Is it fair to judge the ebbs and flows of Dubai's tourism when all is focused in the United Arab Emirates city on Expo 2020, the huge global gathering set to kick off next fall?
The event is expected to attract 25 million visits and participants from 190 countries between October 2020 and April 2021. The World Expo is expected to contribute approximately 1.5 percent of the UAE’s annual forecast gross domestic product during its run. It's expected to add some $30 billion to the economy through 2030, according to an Ernst & Young study.
Preparations are, of course, running at a rapid pace, with construction of new venues and hotels spread across the city.
But right now all eyes are on the health of Dubai’s hospitality sector after six consecutive quarters that saw supply outgrowing demand, and more than 500 job cuts at state-owned luxury hotel chain Jumeirah Group.
As of June 2019, Dubai has more than 700 hotels that offer nearly 120,000 rooms. The city’s occupancy level of 67.1 percent was the lowest for a second quarter since 2009, while the absolute daily rates and revenue per available room (RevPAR) were the lowest since 2003, analyst for consulting firm STR analysts have noted.
June was the strongest month of the second quarter with a 30.5 percent increase in demand,
