Game plan for Dubai hospitality industry
As Dubai marked 100,000 rooms a few months ago, the industry is on a rapid adaptive game plan tapping different market segments. Industry experts share their views with .
Despite the many challenges of the last few years, the MEA region has proven its resilience. The region remains dynamic with many opportunities for growth. The evolving budgets of both leisure and business guests, together with an improved mid-scale and budget hotel offering, have created a lot of opportunity in the region. The increased number of people travelling to the MEA region (due to cheaper airfares and better connectivity of budget airlines to this region) means that, although we are still seeing healthy growth within the luxury market, the real opportunity lies in midscale and budget developments.
We are no doubt witnessing a significant increase in room supply as well as other forms of competition like Airbnb. This, coupled with weaker market conditions, creates an extremely competitive landscape. In addition there are new source markets emerging especially from Asia, with China and India at the top. We at HMH unlock and leverage global opportunities, creating value for our owners and associates with unique revenue generation and optimization tools, reinforced central business development and sales team, strategic alliance with travel trade and intermediaries, and compelling value proposition for guests.
Central Hotels will continue to grow in Dubai from 2020 and beyond with eight operating properties and a total room count of 2,750. Central Hotels will effectively utilise the best tools available in the market in terms of market intelligence, revenue management, digital communications, and social media while at the same time, investing heavily on our products and our people. Included within Central Hotels’ five-year plan is our expansion outside the UAE targeting Levant, North Africa, and the GCC. By being present in different markets, we will be able to maintain our growth for the next 10 years.
The industry is always looking for new ways to fill rooms as it’s not always possible for a 100 per cent occupancy for multiple reasons. The region will open to new markets and actively pursue destination marketing activities targeting locations that continue to open thanks to new and expanding airline services. Connectivity plays a big role in drawing visitors, and stopovers are very helpful in attracting repeat visitation. New offerings such as the new Theme Parks in Dubai will keep a renewed interest in the city, and Expo 2020, which will target 20 million visitors, will showcase the region to visitors from all around the world.
Dubai hotels are extremely fortunate as we are led by Dubai
Tourism that really does a lot of the thinking and marketing for Dubai as a destination. The retail sector including the hospitality sector benefits tremendously from these results.
Dubai has created supply to meet the forecasted demands. Year-on-year hotel rooms are filling up with the many events and exhibitions being hosted in this city. We take our direction and brand marketing from Dubai Tourism.
We are exceptionally proud of the contribution Jumeirah Group makes to the development of Dubai as a world-class hospitality and tourism destination. In December, Jumeirah Al Naseem will open with 430 rooms adding to our existing portfolio of luxury properties at Madinat Jumeirah, that includes Jumeirah Al Qasr, Jumeirah Mina A’Salam, Jumeirah Dar Al Masyaf. We current operate 9 properties in Dubai with an inventory of 3208 hotel rooms, suites and villas. Our efforts are focused on bringing new visitors to Dubai and delivering experiences aligned with Jumeirah’s brand promise of ‘stay different’.