The hospitality market in the UAE is expected to see an improvement in 2017 thanks to investment in theme parks and the opera district.
That’s according to a 2016 year end report, that was released by global property consultants Knight Frank, which said that Abu Dhabi should also expect a rise in visitors following investment in cultural and entertainment facilities.
“The short term outlook for the hospitality market in the UAE remains clouded by the continued appreciation of the USD and prevalent economic uncertainties,” reads the report.
“However, the delivery of Dubai’s theme park complex along with the Opera District and other demand generators is expected to drive demand for Dubai’s hospitality market in the next 12 months.
“Meanwhile in Abu Dhabi, the delivery of more cultural and entertainment facilities is expected to stimulate visitation.”
The report also urged hotel operators to diversify their products and offer more budget accommodation.
It also revealed that while the occupancy rate was the same for Dubai in 2016 as the previous year, there had been a decline of 12 per cent in the average daily rate (ADR) compared to 2015. There was also a fall of 12% in revenue per available room (RevPar).
In Abu Dhabi the occupancy rate fell from 74% to 71% and there was a resulting 11% drop in ADR and RevPar fell even further by 14%.
“Introducing more affordable options will not only balance the hotel supply, which is currently skewed towards the luxury market, but will continue to broaden the country’s tourist base and ensure the UAE remains a competitive tourist destination,” reads the report.