Dubai welcomed 3.1 million tourists in the first two months of 2023, representing a 42 per cent increase over the same period in 2022 and the city’s hotel stock climbed to 150,000 keys.
Around 8,000 keys are expected to be delivered in the year, according to the latest JLL UAE Real Estate Market Overview Report. The UAE’s hospitality sector witnessed a strong growth trajectory in the first quarter of 2023, driven by a steady influx of tourists from three top source markets, namely, India, Russia, and Oman, the report said.
The rise in inbound tourism also benefited the lower and mid-tier hospitality segments, which saw gains between 7-8 basis points (bps) in occupancy and RevPAR (revenue per available room) of 15 per cent for the first two months of the year. Moreover, Dubai and Abu Dhabi hosting events such as Gulf Food and IDEX further aided operators in delivering a formidable performance.
Faraz Ahmed, Associate, Research at JLL Mena, said: “While all sectors continued to build on the performance of 2022, the year’s well-planned calendar of events coupled with the continuous increase in tourist numbers, have firmly placed the hospitality sector on a growth track, reaffirming its position as one of the strongest pillars supporting the UAE’s economic acceleration. However, macroeconomic volatilities continue to influence global travel trends, making it critical for operators to employ effective revenue management strategies to boost topline revenues, particularly those in the luxury segment.”
