As more foreign tourists continue to visit the Gulf tourism center, the UAE wants to build 48,000 additional hotel rooms by 2030, which is 25% higher than its current supply of 200,000 rooms.
According to global consultancy Knight Frank, delivering the anticipated supply of hotel rooms is expected to cost roughly $32 billion, with a focus on luxury properties. The four- and five-star categories will include about 70% of all planned rooms.
“Due to the hospitality market’s success in the UAE, foreign operators are eager to keep establishing their footprint. In fact, from the current 56 percent, the ratio of international operators to local ones is expected to increase to 60 percent, “According to Knight Frank’s partner and head of the Middle East study, Faisal Durrani.
Sheikh Mohammed bin Rashid, Dubai’s ruler and prime minister, stated earlier this month that the UAE anticipates a “strong tourism comeback” this winter. In the first half of the year, there were 12 million more hotel visitors overall in the UAE, a rise of 42%. Over the course of the first half of 2022, the tourism industry generated more than Dh19 billion.
Dubai, which currently has more than 130,000 hotel keys, will host the opening of about 76% of the new hotel rooms. Already, the stockpile exceeds the size of major cities like London or New York.
A increasing number of attractions, the emirate being awarded Trip Advisor’s most popular destination for 2022, and factors like the government’s response to the Covid-19 outbreak “all point to opportunity for future growth and expansion of this all-important pillar in the economy,” Mr. Durrani said.
8.1 million tourists from other countries visited Dubai in the first seven months of 2022. Government statistics showed that this exceeded the total for the entire year of 2021 by over three times. The emirate welcomed 7.28 million tourists in 2021, demonstrating how its tourism industry has rebounded from the pandemic.
According to Knight Frank’s report, an increasing number of foreign hotel operators are vying for positions in the UAE’s hospitality industry.
According to Mr. Durrani, Hilton Hotels will grow the number of rooms the most, adding up to 5,000 more rooms by the end of the decade, a 43% increase from now.
With about 25,000 rooms under control by 2030, according to Knight Frank, the Accor Group will firmly establish itself as the top hotel room operator in the UAE.
International and local hotel chains like IHG, Marriott International, and Rotana expressed optimism about the UAE’s future prospects last week at the Future Hospitality Summit in Dubai. This occurred while traveler numbers were on the rise and the November Fifa World Cup in Qatar was approaching.
In terms of hotel performance, the three largest cities in the United Arab Emirates—Dubai, Abu Dhabi, and Sharjah—remain at the top of the area, according to Turab Saleem, partner and head of tourism and hospitality at Knight Frank.
A “sea change in demand” is coming to Saudi Arabia as business and leisure travel start to outpace the available supply. According to Mr. Saleem, this will result in increased nightly rates and yearly rates because there aren’t enough hotel rooms to accommodate the demand.
According to Knight Frank, Saudi Arabia is moving on with an ambitious scheme to enhance the hospitality industry that will see the construction of more than 275,000 hotel rooms throughout the country over the next ten years for a total of $110 billion.
According to Mr. Saleem, “the region’s evolving hospitality sector is expected to offer a highly compelling proposition for international travelers.”