Hospitality Sector Key Driver of UAE Economy
The total number of overnight stays in UAE hotels will reach 51.5 million by the end of this year; up 5.7% on 2014. According to a Business Monitor International report the trend is set to continue over the next three years with growth from 4 to 5.5%.
The report said: ’The average length of stay in the UAE during 2015 will be 3.3 nights, which is expected to grow over the next three years to 3.4 nights, with the average occupancy in UAE hotels expected to be 72.7% by the end of 2015.’
Executives at one of the region’s largest operators of luxury hotel apartments, DAMAC Properties, say tourism and the hospitality sector is now one of the most important factors driving the UAE economy.
DAMAC Properties has opened five luxury hotel apartment towers in just 16 months, with a total of almost 1,500 keys, with a further 10,000 units in development, all of which will be delivered by 2020. This will position the company as one of the largest hotel apartment operators and developers in the region.
Niall McLoughlin, Senior Vice President, DAMAC Properties, said: “The hospitality sector is a key factor in driving the UAE economy forward, with overall growth hitting almost 10% in the first half of this year.”
He added: “DAMAC’s Hotels and Hotel apartment projects offer a practical and comfortable solution for busy travellers or families visiting Dubai for vacation or business.”
“Our luxury apartments offer bespoke services to our residents and customers, setting new standards in the hospitality sector, driven by our aim for excellence, not only through the regular day-to-day services, but on various levels, including design, functionality and know-how,” said McLoughlin.
“Our five completed projects: DAMAC Maison Cour Jardin, DAMAC Maison The Vogue, DAMAC Maison - Dubai Mall Street, DAMAC Maison Canal Views and NAIA Breeze are all located in the most popular area of Dubai, in the heart of the Burj and Business Bay areas, where the increasing number of business visitors and travellers is recorded every day and reaching new peaks,” he added.
According to the latest Euromonitor International report, the hospitality sector in the UAE holds a positive future with hotel revenue this year set to reach AED 26.8 billion, a number which should grow to AED 40 billion in 2019. Tourism numbers are also set to more than double up to 2020, with the emirate anticipating more than 25 million visitors a year by the time the World Expo 2020 opens.
DAMAC Properties opened its first luxury serviced hotel apartments in December 2013, with the completion of DAMAC Maison – Dubai Mall Street. The 50-storey, 355-unit tower overlooks the Burj Khalifa and Dubai Mall. The company is on schedule to open two further Hotels in the Burj Area in 2016. DAMAC Maison The Distinction and DAMAC Maison Upper Crest.
As of 30th June 2015, DAMAC Properties has delivered 14,375 homes and has a development portfolio of over 37,000 units at various stages of progress and planning.