With Christmas and the holiday season around the corner, hotel occupancies are projected to shoot up going into the new year, according to industry experts
With Christmas and the holiday season around the corner, industry experts are optimistic about the travel and hospitality sector’s continued recovery, with hotel occupancies projected to shoot up leading up to 2022.
“We have seen a significant increase in occupancy as Q4 ushered in and Expo 2020 Dubai is in full force. We expect the increased demand to continue until the culmination of the year,” said Tim Cordon, area senior vice president, Middle East and Africa, at Radisson Hotel Group.
“Hotel demand is currently very high due to Christmas and new year’s periods. Subsequently, we are seeing more tourists coming into the UAE due to Expo and the Dubai Shopping Festival. Hotels are mostly sold out and are operating at over 90 percent occupancy during this festive season,” shared Micky Bhatia, founder of ElevateTrips.
Alongside expo, the UAE has become a global hub for hosting world-class events safely, such as the recent Formula 1 Etihad Airways Abu Dhabi Grand Prix and ICC Men’s T20 World Cup 2021.
“Hotel demand is currently very high due to Christmas and new year’s periods. Subsequently, we are seeing more tourists coming into the UAE due to Expo and the Dubai Shopping Festival. Hotels are mostly sold out and are operating at over 90 percent occupancy during this festive season,” shared Micky Bhatia, founder of ElevateTrips.
Alongside expo, the UAE has become a global hub for hosting world-class events safely, such as the recent Formula 1 Etihad Airways Abu Dhabi Grand Prix and ICC Men’s T20 World Cup 2021.
“In the remaining weeks of the year, we expect leisure tourism will pick up, particularly with Europe entering or already in some form of lockdown. Due to these lockdowns, we expect that traditional winter vacation visitation will be diverted, with the UAE in particular, being a beneficiary,” said Taimur Khan, head of research at CBRE.
Dubai’s airport is also anticipating another busy period with passenger numbers expected to hit over 1 million in December.
“For Dubai, given its connectivity and transit hub status, we expect that transit passengers will choose to extend their layover in Dubai, in part due to Expo, thereby driving visitation further,” added Khan.
Key factors
The mass vaccination initiative and stringent safety measures imposed by the UAE government, as well as innovative marketing campaigns, are among the key factors driving the encouraging projections for the industry.
“The preventive measures to contain the coronavirus pandemic are one of the significant factors that helped boost the country’s stature as a safe travel destination, despite the pandemic continuing globally,” said Bhatia.
The UAE has rolled out one of the fastest vaccination campaigns in the world, with 100 percent of eligible people having received their first dose, while more than 90 percent have received both doses.
“The UAE is a remarkable country that now takes centre stage on the global landscape with respect to health and safety thanks to the incredibly insightful leadership at the helm,” shared Aloki Batra, CEO at FIVE Hotels and Resorts.
“Therefore, with exceptionally high vaccination rates and an exceedingly low number of positive cases, along with a well-connected International airport, I believe that tourism will continue to remain resilient during this period,” he added.
Dubai has also recently unveiled its newest marketing campaign, Dubai Destinations, bringing together government entities, industry stakeholders and the creative community to support the emirate’s tourism recovery.
The initiative, which complements broader efforts to enhance the UAE’s profile as a leading global destination, invites people to discover Dubai through its many experiences ranging across adventure, entertainment, food, art, culture, sports and fitness.
Omicron concerns
Concerns around the new omicron variant remain high, with uncertainty around altering movement restrictions impacting traveller confidence. However, Cordon believes that “occupancies will stay progressive in the UAE”.
The new omicron strain has been designated a “variant of concern” by the World Health Organisation. Outside South Africa, cases have been found all over the world.
“We are hoping that it will not impact our travel business much, also there is news about Omicron not being very lethal and additional preventive measures have helped curb the spread, therefore tourism would be business as usual for the UAE during this period,” added Bhatia.
SOURCE: arabianbusiness.com