When we discuss the Hospitality sector in Dubai, we get into the Hotel industry for the first instance, but in fact, Dubai has done much more than raising the standards of Hotels to another level in order to stand out in reflecting the thorough meaning of the word “Hospitality”. Today we would like to cast the light in depth about the unforeseen preparations that Dubai went through till it was able to create the current solid foundation for the “Hospitality Atmosphere” that was generated over the last three decades with thorough planning, hard work and dedication in order to create the emotional interest in every person’s mind and consequently getting Dubai to become the world’s first choice for those who are seeking a unique experience.
In order to feel welcomed in Dubai, there have been serious interrelated phases created to cover every life aspect for every circle of targeted visitors. But before going through these phases, it is very important to understand the prepared background for implementation:
• UAE Locals are very well known over history for welcoming their guests, opening their houses, spending their own money and sharing whatever they have for the sake of fulfilling their very important traditions of giving a home-like feeling for their visitors.
• This is practically experienced and fulfilled through the decades of being part of the Silk Road and trading destination for all the surrounding countries.
• UAE Residents has been always living and enjoying the multicultural environment. And this was only possible because of the leaders’ mythology of embracing the business minds, entrepreneurs, talents and work seekers from the Arabic Countries as well as all over the Globe.
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• Eventually, UAE became the brain drain destination for important business minds, talents and peaceful life seekers from every country worldwide.
As an end result, Dubai as a multi – cultural city, created and continuously enhanced the foundation for its being the destination for tourism, business, trading, shopping; and simultaneously developed other sectors like, education, media, medication, exhibitions, festivals and much more in order to cover every need for every person. The background is now clear, and the implementation of the phases is set to take place within geographic circles to offer Dubai as a unique destination within the “Hospitality Atmosphere” Strategy:
• The first circle was UAE nationals and residents from the other emirates within UAE who believe that Dubai is their first choice destination.
• The second circle was growing the GCC nationals and residents’ interest in Dubai.
• The third circle was the neighborhood from the Arab Countries, and Asia.
• The fourth circle was Europe, USA, Canada, Russia, China and Australia.
• The fifth circle was the entire world.
Each one of these circles was elegantly welcomed to cater to their mind-sets; taking into consideration that the open-mindedness should not overwhelm the local Identity and traditions’ platform.
SOME OF THE STEPS DUBAI GENERATED TO CREATE THE “HOSPITALITY ATMOSPHERE”
• Security and safety high standards and measures at all times.
• The State of Art and up to date diversified infrastructure.
• Dubai Raised Hotels’ as well as hotel apartments’ standards to cater to every need with a style.
• Dubai Airport today is the busiest airport in the world. Still, it keeps on improving and expanding every day.
• The quality & diversity in the food and beverage industry in Dubai answers the demands of every budget and every nationality.
• While Dubai continues to add new supply in Hotels, it also continues to add new leisure attractions, like “Dubai Parks and Resorts, Dubai Opera District, Dubai Eye, and several standing out retail destinations”; putting in mind that expanding the market’s range of potential visitors can only help drive hotel demand and profitability into every sector.”
• Dubai is undertaking a significant effort to prepare its hospitality sector for Dubai Expo. Starting in October 2020, the exhibition will take place under the theme “Connecting Minds, Creating the Future”.
TODAY’S RESULTS IN FACTS & FIGURES
• “Dubai hotels have recorded strong occupancy levels during the first quarter of 2017, according to new data from industry analysts STR.” Hotelier Middle East 24/04/2017
• “Based on preliminary data, Dubai recorded an occupancy level of 86.3% in 2017, which was a 2.7% uplift compared with Q1 2016.” Hotelier Middle East 24/04/2017
• At the Arabian Hotel Investment Conference (AHIC) on 26 April, Robin Rossmann, STR’s managing director, notes that Dubai’s strong demand is impressive considering the significance of supply growth in the market. “With more than 42,000 rooms currently Under Contract, Dubai has the largest pipeline of any city in the world,” Rossmann said. Dubai continues to attract substantial leisure business, so this is definitely one of the top markets in the industry to keep an eye on from both a supply development and performance perspective.
• Dubai, the regional hub for hospitality, tourism and shopping, is the world’s biggest growing market outside of China since 2008 in terms of new hotel openings. The city has been named a top 10 global destination for business, leisure and shopping tourists, in a research exercise by Genesis Consulting ME.
• The total value of 1,153 hospitality projects in the six members of the Gulf Cooperation Council (GCC) exceeded $148.4 billion in the first quarter of 2017, according to a report released by project research and intelligence provider BNC Network in March. Dubai alone plans to double the number of hotels and serviced apartments leading to revenue of $10bn, according to a report by Alpen Capital.
• “The UAE’s hotel construction pipeline is forecast to peak in 2017 and 2018 as the country gears up for the Expo 2020. Experts forecast 2017 and 2018 to be the busiest years, with 56 project openings in 2017 and 58 openings in 2018. In the hotels’ sector, a further 28,900 rooms are predicted to be delivered in Dubai over the next two years as capacity expands in the run-up to the event.” Khaleej Times June 10, 2017
• Chris Nader, vice-president of development at Shaza Hotels, noted that intra-regional travel between GCC countries is increasing, with families preferring to take shorter and more frequent holidays, and hence looking for leisure destinations in the region. Dubai, he said, has clearly established itself as the leader in terms of family holidays, but it is facing more and more competition from neighboring destinations such as Ras Al Khaimah, Muscat and Salalah.
• “Dubai experienced an increase across all KPIs, including the highest RevPAR of $273, an increase of 18.7 percent when compared to last year. Dubai also saw the highest occupancy in April at 88 percent and the highest average room rate of $310,” said Yousef Wahbah, Mena head of transaction real estate at EY.
• Despite the influx of new hotels, Dubai has managed to sustain extremely high occupancy levels year-on-year. Mena Hotel Benchmark Survey Report by EY
• “Dubai’s hospitality market has emerged as the top Mena performer in January 2017, representing the highest occupancy at 85.7 percent and highest revenue per average room (RevPAR) over three times the average RevPAR recorded in other Mena cities.” Khaleej times March 10, 2017
Dubai has been proven a year after another to be one of the best destinations for Families, individuals and business tourism. With the wide range of products that were created to guarantee the “Hospitality Atmosphere” for every visitor, and the huge efforts exerted continuously by Department of Tourism and Commerce Marketing in Dubai, it will continue to place itself distinctively in the global travel map.
You can also find this on Property Time Magazine (September Edition 2017) http://blog.propertytime.ae/2017/09…
Article Author: MHD Noureddin Akbiyik
Managing Partner – Layan Real Estate Brokers
DCEO – Layan Group
Managing Partner – Layan Real Estate Brokers
DCEO – Layan Group
