Dubai Hotels Made Hefty Returns In 2007

By Author: Alessandro Dubaldo
Total Articles: 19
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Revenues earned by Dubai hotels grew by 15.74 percent in the year 2007, touching Dh12.5 billion, as against Dh10.8 in 2006, a recent official announcement stated. It signifies the amount of growth Dubai's tourism sector has seen in the recent years. According to the some calculations, a staggering Dh1 trillion worth of tourism projects are scattered across the Gulf right
now. Out of these, Dh454 billion are shared by Dubai alone. The remaining cash - Dh404 billion - goes to the other areas of the UAE. Some key beneficiaries of this investment are Dubai hotels, resorts, and furnished Dubai hotel apartments.

Although, Dubai's growth began taking shape much earlier, it wasn't until the last one decade that it became a known as a tourist ground. The construction of landmarks like Burj Al Arab, Palm Jumeirah Islands and Dubai Marina has dramatically tilted the favor in its balance. Burj Al Arab is the world's largest and the only one of its kind seven star facility in the Middle East, which often gets to host very famous names from across the globe. The city carries many other word-class Dubai hotels, resorts, furnished ...
... villas and Dubai hotel apartments apart from, Burj Al Arab. Many more are being planned, funded and constructed by Dubai's firms.

As told earlier, Dubai's share of tourism projects (Dh454 billion) stands at about 45.4 percent of what the whole Gulf region gets together. This generates 18 per cent of Dubai's economy. The indirect benefits amount to touch the 30% mark. As per the available data, Dubai hotels had an all-time high of 6.5 million guests in 2006. The number of hotels stood at 414 during that year. The number of Dubai hotel rooms, furnished apartments and Dubai hotel apartments increased by 40,862 in the same time period. This speaks about the nature of growth Dubai's hospitality sector has been witnessing to in the recent times.

Dubai hotels had a milestone written in their name when they recorded the highest occupancy and returns during the month of January 2007, thus leaving behind some major cities like Sydney, Tokyo, London and Hong Kong. The hotel occupancy stood in descending order during that month at 85 per cent for Dubai, 83.8 per cent for Hong Kong, 76.6 per cent for Sydney, 73 per
cent for Tokyo and 71.5 per cent for London. It took somewhat longer for the world to acknowledge the potential of Dubai hotels, resorts, and Dubai hotel apartments, but they have finally awarded them with the credit they deserved!

Hotels reported high occupancy rates even for the month January 2008, due to the ongoing Dubai Shopping Festival (2008). Some customers were refused accommodation by the hotels on Sheikh Zayed Road recently, when a three-day long period of rains and heavy winds left the normal life disrupted there. Many commuters got stranded in the chaos that followed, and
were turned back while trying to get shelter in the hotels on that road. The current level of demand for accommodation is greater than what Dubai hotels, furnished apartments and Dubai hotel apartments may have with them to supply, and that's why many projects are being given the green signal these days in a haste that we never saw before.