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Dubai, always impressing with numbers

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Dubai expects 14.2 million visitors this year

Dubai’s leisure offerings will be significantly enhanced by a number of theme parks next year, and it is crucial that these big projects are complemented by continuous additions in other areas, always ensuring that there are more and more reasons to visit Dubai, Issam Abdul Rahim Kazim said at the keynote speech at The Hotel Show and The Leisure Show, which took place at Dubai World Trade Centre end of last month.

The CEO of Dubai Corporation for Tourism and Commerce Marketing (DCTCM), also said that Dubai’s cruise industry also contributed to the growth, and that the 2014-2015 cruise season saw an overall increase of 15 per cent in ship calls and 42 per cent increase in cruise tourists.

Dubai Tourism recently participated at its first Seatrade Europe in Hamburg, under the joint marketing efforts of Cruise Arabia, with partners Oman Tourism and TCA Abu Dhabi, along with its newest partners, Qatar Tourism Authority (QTA) and Sharjah Commerce and Tourism Development Authority (SCTDA).

Dubai welcomed 13.2 million international overnight visitors in 2014 and expects 14.2 million visitors this year. Already, 8.2 million visitors have landed in Dubai in the first seven months of this year.

The emirate is developing leisure facilities including Dubai Parks and Resorts, a theme park that is set to open in October next year, and Six Flags, slated to open in 2017.

Dubai’s average occupancy rates between January and July stood at 77 per cent, while the RevPar (revenue per available room) was  Dh450 ($125).


DUBAI PARKS AND RESORTS

Dubai Parks and Resorts (DPR) will be the Middle East’s largest multi-themed leisure and entertainment destination, and is a large-scale Dh10.5 billion ($2.9 billion) project, spread across 25 million square feet of land.

It comprises three separate theme parks – motiongate Dubai, a Hollywood movie inspired theme park concept; Legoland Dubai, the first Legoland theme park in the Middle East; and Bollywood Parks Dubai, a first-of-its-kind entertainment destination that will showcase the authentic Bollywood movie experience.

In total, motiongate Dubai alone will be 27 attractions, 21 of which will be indoor to help maintain interest in summer. Described as ‘Hollywood in the desert’, it will, like all modern amusement parks, have strong multimedia and interactive elements.

In addition to the theme parks, DPR will also have the Legoland Water Park, the region’s first water park catering to families with children aged 2 to 12 will also open on the site. The Lapita Hotel, a Polynesian-themed hotel, managed by Marriott Group, will also be part of the DPR project, which sits on the cusp of Dubai and Abu Dhabi. Riverland Dubai will be a centrally located district of 220,000 square feet of leasable retail, dining and entertainment space, connecting the three theme parks, waterpark and hotel.

In the first full year of operations in starting from October 2017 when it opens, DPR is expecting 6.7 million ticketed visits. It is located on Sheikh Zayed Road close to Palm Jebel Ali, between Dubai and Abu Dhabi.


MID-MARKET TRAVEL

'Data released by Jones Lang LaSalle (JLL) revealed that up to 50 per cent of the 3,600 new hotel rooms to enter the Dubai market in the final months of 2015 have a three-star or lower rating, while competitive room rates are set to rival the luxury market, as 69 per cent to have four stars or less according to research,' says Nadege Noblet-Segers, exhibition manager, Arabian Travel Market (ATM).

'This will add much-needed midscale room stock to the emirate’s hotel landscape, where three-star or below room supply only accounted for 29 per cent of total availability in the first quarter of 2015,' she adds.

Mid-market travel, which is a key growth segment for the region’s hospitality and tourism sector, has been selected as the official show theme for ATM 2016, which will take place at the Dubai International Convention & Exhibition Centre from April 25 to 28 next year.

Destinations like Dubai are already putting in place programmes to encourage investment into midmarket hotels such as the release of government land plots for three and four-star hotel projects, speeding up of the construction permit approval process to just two months, and the waiver of the 10 per cent municipality room tax for four years upon completion.

Dubai currently has a total hotel key count of approximately 94,000. This figure is set to rise to between 140,000 and 160,000 keys by 2020 with around 20 per cent set to target the mid-market hotel sector. A host of global hotel brands and local UAE-based operators are targeting the aggressive brand expansion in this area, especially after the latest Knight Frank report.

The study revealed that the Dubai segment showed a year-on-year RevPAR increase of 0.5 per cent during the first quarter of the year, which was driven by an increase in average rate at a time declining performance for the luxury and upper upscale segments. Demand is being driven by a growing middle class in markets such as China, India and Africa combined with budget Generation Y travellers and young families.

2019 REVENUE FORECAST

A report by Euromonitor for the Hotel Show and The Leisure Show Dubai suggests UAE hotels’ annual revenues forecast set to reach $10.9 billion by 2019, almost doubling from the $5.9 billion figure recorded in 2013.

Visitor attraction revenues are also forecast to double from $521 million recorded in 2013 to over $1.2 billion by 2019.

In 2015, UAE hotel revenues are forecast to reach $7.3 billion, while visitor attraction revenues will hit $638 million.

As more developments enter the pipeline, including last month’s announcement of the record-breaking Meydan One project - featuring the world’s largest indoor ski slope, the UAE’s future for leisure and entertainment tourism looks exceedingly good. 


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Dubai welcomes second Edition

Marriott International, together with Ian Schrager and Dubai Properties, announced plans for a second Edition hotel in the UAE set for Dubai. Scheduled to open in 2018, the new hotel will follow the expected 2016 debut of the Emirate’s first Edition property located in Abu Dhabi. Edition, a luxury-lifestyle brand, combines the personal, intimate, individualised and unique hotel experience that Ian Schrager is known for, with the global reach, operational expertise and scale of Marriott International. Marriott International will manage the hotel under a long-term agreement.

The 258-room hotel will occupy a strategic beach front location on Jumeirah Beach Residence (JBR), and boast multiple food and beverage outlets as well as business and leisure facilities including a spa, a beach club, meeting and special event space and a fully equipped business centre.

'Dubai remains one of the most important and vibrant destinations in the world, where we are delighted to announce our second Edition hotel to open in the Middle East,' says Alex Kyriakidis, president for Marriott International in the Middle East and Africa. 'Following the iconic openings of London, Miami Beach and New York City, we couldn’t be more excited about the potential for this brand in the region.' 

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