Dubai's Jumeirah said to cut 500 jobs amid slowdown

Sources say operator of Burj Al Arab, plus total of 24 hotels worldwide, has slashed hundreds of jobs recently

The luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs
The luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs

Jumeirah Group has cut hundreds of jobs as a slowdown in the emirate’s tourism industry weighs on the operator of Dubai’s sail-shaped Burj Al Arab hotel, according to people familiar with the matter.

The government-owned luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs, the people said, asking not to be identified as the information is private.

Most of the cuts were support roles, they said. Jumeirah has more than 13,500 employees, according to its website.

A spokeswoman for Jumeirah declined to comment, sister title Arabian Business reported.

Dubai’s hotels are struggling as growth in the tourism sector, one of the emirate’s main economic pillars, stalls. Occupancy levels during the second quarter were at their lowest since 2009, while average daily rates and revenue available per room fell to 2003 levels, according to STR, a global hotel data provider.

Did you like this story?
Click here for more

New openings ahead of the 2020 World Expo have also led to oversupply. Dubai-based companies such as real estate developers and banks are also reducing staff as the emirate grapples with regional geopolitical tensions, relatively low oil prices and an ongoing real estate and retail slump.

The government introduced measures to stimulate the economy such as lowering certain business fees and issuing longer-term visas.

For all the latest hospitality news from UAE, Gulf countries and around the world, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page.

Most Popular

Newsletter

Reports

Human Capital Report 2017

Human Capital Report 2017

The second annual Hotelier Middle East Human Capital Report is designed to explore the issues, challenges and opportunities facing hospitality professionals responsible for the hotel industry’s most important asset – its people. The report combines the results of Hotelier Middle East's HR Leaders Survey with exclusive interviews with the region's senior human resources directors.

Hotelier Middle East Housekeeping Report 2016

Hotelier Middle East Housekeeping Report 2016

The Hotelier Middle East Housekeeping Report 2016 provides essential business insight into this critical hotel function, revealing a gradual move towards the use of automated management and a commitment to sustainability, concerns over recruitment, retention and staff outsourcing, and the potential to deliver much more, if only the industry's "image problem" can be reversed.

From the edition

From the magazine