Hotel investment in Dubai has become extremely popular in recent years, with investors being attracted by the significant rewards on offer thanks to Dubai’s booming tourism industry. With the World Expo 2020 on the horizon, now could be the time to consider hotel investment in Dubai. So – what are the raw facts around Dubai’s tourism industry? How well are Dubai’s hotels really doing, and what does the future hold? In this article we’re going to run through what you need to know…
Dubai’s hotels are booming thanks to what can only be described as Dubai’s phenomenal tourism success story. Tourist arrivals have been increasing for several years, with arrivals up by 10.6 per cent in 2013 ,when more than 11 million guests checked into Dubai’s hotels. It’s a story that continued into 2014, with figures from the Dubai Department of Tourism and Commerce Marketing (DTCM) revealing that in the first half of 2014 alone some 5.8 million people arrived in Dubai. The emirate isn’t set to rest easy, either – it has targeted 20 million arrivals by 2020, the year of the World Expo.
Such impressive figures have obviously translated into Dubai’s hotels doing extremely well. Hotel occupancy rates have consistently hovered around the 80% mark, with October 2014 figures from STR Global finding that occupancy rates reached 81.7 per cent. This will be music to the ears of those considering hotel investment in Dubai, where strong occupancy rates are important for seeing good returns. The DTCM also revealed that revenues for hoteliers and hotel apartment operators reached a staggering Dhs21.84 billion in 2013, which was an increase of 16.1 per cent on the previous year. Leading industry consultants have predicted that the strong performance of the tourism and hospitality industry is set to continue as Dubai continues to attract more and more visitors from across the world.
With the emirate’s hotels booming it is easy to see why hotel investment in Dubai is so popular. Dubai’s outstanding performance translates into extremely strong returns for investors, whilst the option of hotel investment in general continues to be as attractive as ever. As a fully furnished, managed and serviced investment, those who choose hotel investment can concentrate on enjoying the benefits of their returns. Whilst no investment is ever 100 per cent guaranteed, it is hard to ignore the attractive figures that have come out of Dubai’s vibrant hotel market.