Staycation strategy pays off for Dubai hotels

Eid proved to be a big money spinner for just about every hotel in the emirate

Hotels in Dubai, and elsewhere in the UAE, have scored a hit by pushing hard on staycation promotions, first during the Eid holidays and over the last two weeks of August. Occupancy levels at many of these properties crossed the 60 per cent mark during this period, after suffering through 20 per cent or so during the April-June phase.

Clearly, selling holiday packages to residents has come to the rescue of the beleaguered hotel industry. It helped that hotel rates had dropped to record lows during this period.

“Hotel rates are under pressure — but it was a fantastic opportunity for the UAE residents to make the most of this once-in-a-lifetime opportunity,” said Philip Wooller, Area Director Middle East & Africa at data firm STR, which tracks the hotel industry. The consultancy expects average room rates to hover around the Dh350 a night mark for most of September as well before making some gains from October.

‘An important market’

The Jumeirah Group confirmed that staycation-focused offers have brought on the desired results. According to its chief commercial officer, Alexander Lee, “The domestic market has proven extremely important — we continue to see increased demand from residents, particularly over the weekends.”

But with the resumption of tourist arrivals to Dubai from July 7, hotels no longer have to rely solely on local bookings. Hotels have also been reporting improved numbers since.

Anantara, which received its first overseas guest on July 8 and a German family on July 19, expects to take in more tourist arrivals in September. It also witnessed a rise in bookings during the extended Eid holidays last month.

Eid proved to be a big money spinner for just about every hotel. According to STR, those in the more “desirable” locations had occupancy rates of up to 90 per cent during the break.

After the pandemic broke, average rates across the country dropped nearly 20 per cent in June, according to TRI Hospitality Consulting.