General Travel News

Hospitality Experts Optimistic About Growth Prospects

The hospitality industry is optimistic about growth prospects in the region, with more hotels on the market, and room rates down from last year.  Rotana Area Director of Sales and Marketing for Dubai and Northern Emirates said that room rates were way too high, but “Around the middle of 2009, the rates started to even out and there was a correction in the market.  Now room rates have come back to normal, how they should be.”  

Naeem Darkazally said this was a necessary correction for the market because Dubai should be an affordable destination, and not offering only exclusive, expensive accommodation.  STR Global data shows that Dubai’s occupancy rate was 82.1 percent in November 2009, unchanged from November 2008.    However, the average daily rate fell from $365.40 in November 2008, to $294.8 in November 2009, an 82.1 percent drop.
 

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