The number of hotel rooms in the UAE will rise by 30 per cent by the end of 2016 according to figures in a new report about the hospitality sector of the emirates published today by JLL.
JLL said that more than 28,000 additional rooms are expected to be built in the UAE by 2016. Dubai accounts for almost 50 per cent. Abu Dhabi accounts for 31 per cent.
“The overall UAE tourism and hospitality market is expected to witness positive and stable growth rates for the next three to five years,” the report said.
JLL said that the UAE has 590 hotels with more than 93,000 rooms, Dubai and Abu Dhabi account for 86 per cent of the supply. International operators control about 68 per cent of the UAE’s hotel room inventory and the majority of supply is concentrated in the 4 and 5-star segment, JLL said.
“Dubai remains the market leader by trading performance and tourist arrivals, where successful growth strategies to diversify the tourism demand base have enhanced its image as a premium global tourism destination,” JLL said. “The city is expected to continue on its sustainable growth path with a balanced demand and supply dynamic in the short to medium-term.”
JLL said that Abu Dhabi has witnessed a selective recovery in hotel performance.
“As the capital’s tourism and leisure offerings develop, the hospitality sector is poised to witness growth in the medium to long term,” the report said.
JLL said that Abu Dhabi’s hotel demand has been driven by strong performance in the corporate and MICE segments. The number of tourists visiting Abu Dhabi has increased from less than 1m in 2004 to about 2.8m in 2013, it said.
“The northern emirates of the UAE, in particular Ras al-Khaimah and Fujairah, have emerged as key getaway destinations registering rapid growth in tourist arrivals,” JLL said. “Continued marketing efforts and completion of master-planned projects in these emirates will be key drivers to establish their position as a tourist.”
For more, see www.meed.com.