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Dubai Hotel RevPar May Drop Further

ImageA new report by Deloitte said that hotel rates and RevPar may continue to drop in Dubai and the Middle East due to macro economic reasons and the addition of new hotel rooms.   However the report highlights factors that may help the region recover in a shorter period of time.  The “Deloitte Executive Report: Winter/Spring 2009” said the region has strong fundamentals and will emerge as a stronger contender among the world’s leading tourist destinations.  

Consulting Director at Deloitte in Dubai said Dubai hotels will have to fight for market share because of the addition of new hotel rooms, but “the leisure sector will become even more important for Dubai hotels.”  Costas Verginis said “It is critical for the local hotel industry to try to increase the average length of stay of the hotel guests.”  The Deloitte report said that tourism in the region both drives and benefits from economic growth.
 

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