The hospitality sector of Dubai is predicted to witness continued growth in the next few years as occupied room nights are ready to touch 35.5 million annually in 2019 that represents a robust 10.2% compound annual growth rate (CAGR) over the next 24 months.
As per a comprehensive study of the market by Dubai’s Department of Tourism and Commerce Marketing ( Dubai Tourism), the room supply of the emirate is forecast to reach 132,000 by the end of 2019, rising at a 2-year (2017 to 2019) CAGR of nearly 11.1%.
The occupancy levels are estimated to continue at a healthy 76 to 78% despite growth in capacity, maintaining the attractiveness of the hotel sector to developers and hotel investors.
The smart competitiveness of the sector is believed to continue to be motivated by increases in the growing international overnight visitation and targeted increases in length of stays.
Dubai’s hotel sector continues to be at the forefront of cross-sector efforts to drive tourism growth as they collectively work towards realizing their Tourism Vision to enable their 2020 goals.
Dubai’s position as the fourth most visited city in the world along with the sustained growth in overnight visitation has been achieved largely due to the efforts of their committed stakeholders in the domestic hotel and hospitality industry as per Helal Saeed Almarri, the Director General of Dubai Tourism.
He was hopeful about achieving a sustained growth in inventory in sync with the projected demand for occupied nights.
At the end of 2017, the hotel inventory of Dubai stood at 107,431 rooms with growth of 4% over the course of the year. Occupancy was at a stable 78% despite capacity rise due to the 6.2% growth in overnight visitors to 15.79 million.
