Dubai Hotels Exploring New Ideas To Increase Occupancy

Dubai hotels are considering new ideas and angles to create new business, following sharp drops in occupancy rates and revenues last year.  Director of Sales at Samaya Hotel in Deira explained “There is a decline in demand for rooms, and a lot of new hotels have recently opened and therefore caused an imbalance in supply and demand.”  STR Global reported that occupancy levels in Dubai hotels dropped from 77.2 percent in 2008 to 69.4 percent in 2009. Average daily rates fell from $308.51 in 2008 to US$235.48 (Dh864). 

Dubai hotels are looking for new markets for business, cutting costs, and launching promotions.  Area Director for Rotana Dubai and Northern Emirates, Naeem Darkallazy, said they are being very aggressive now and aiming for 100 percent occupancy rates during the Dubai Shopping Festival.   Darkallazy said they are investing a lot of money in promoting in the near and Far East.  He said they are trying to tap new markets for business because the economy in Dubai’s key source markets, the UK and Europe, remain weak.

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