Dubai ‘makes a comeback in tourism’

The affordability of Dubai and the emirate’s political stability have helped the city’s comeback as a tourist destination, says a new report.

Despite short to medium-term recovery risks, optimistic sentiment about local market conditions continues to increase with monthly occupancy levels showing Q1 2011 nearly matching Q1 2008 figures – which was pre-economic slowdown, said the Cluttons market report for Dubai Hospitality sector.

The flexibility and consistent performance in Dubai’s hospitality industry and other sectors has helped to reduce economists’ fears of a double-dip recession in the UAE, it said.

Steven Morgan, head of Cluttons UAE, said: “Occupancy rates and lengths of stay have enjoyed considerable growth. However, to what extent Dubai’s current performance is being buoyed by the recent political uncertainty in the region is not yet known and it is unclear how long this situation will continue. In the short term, Dubai seems likely to out-perform in the tourism market this year.”

With over 52,000 hotel rooms, Dubai can confidently cater to the 8.3 million visitors that passed through in 2010, however with 10,000 rooms to be delivered in 2011, and an additional 30,000  rooms in the next three years, the major downside risk for the sector in the medium to long-term still remains to be a case of oversupply.

Cluttons is an independent partnership of chartered surveyors founded in 1765. With a network of offices in the UK, Europe, Middle East and South Africa, Cluttons offers a wide range of professional property management, agency and consultancy services across the commercial and residential sectors, for both investors and occupiers.