Dubai's hotel room supply to reach 132,000 by the end of 2019
The new study by Dubai Tourism also revealed that occupied room nights is expected to reach 35.5 million annually in 2019
Dubai’s hotel room supply is projected to reach 132,000 by end of 2019 according to a study released by the Department of Tourism and Commerce Marketing (Dubai Tourism).
The study also revealed that Dubai’s hospitality sector is expected to experience strong, sustained growth over the coming years, with occupied room nights set to reach 35.5 million annually in 2019, representing a compound annual growth rate (CAGR) of 10.2% over the next two years.
However, the occupancy levels are predicted to stay at 76%-78% even though there is increase in capacity according to the study. By the end of 2017, number of hotel rooms in Dubai stood at 107,431 rooms, and recorded a growth of 4% over the year.
Helal Saeed Almarri, director general of Dubai Tourism, said: “With international and local investors, and operators continuing to actively pursue opportunities in Dubai, we expect to see not only sustained growth in inventory in line with our projected demand for occupied nights, but also further diversification across various asset classifications, to ensure that as a city we are the most globally competitive in providing our visitors the optimal range of options that cater to their preferences across the spectrum of hospitality offerings."
By the end of 2017, number of hotel rooms in Dubai stood at 107,431 rooms, and recorded a growth of 4% over the year.
"The robust performance is particularly significant as it came amid challenging economic and political conditions across key source markets, including the volatility impact of fluctuating oil prices and Brexit," he added.
Almarri stated that room inventory in the 3 and 4 star categories is projected to continue to grow at 10 percent and 13 percent respectively through to the end of 2019.
The diversification of the hotel sector is part of the attempt to enhance the tourist base coming to Dubai and attract visitors from new market segments across diversified source markets.