He emphasized that domestic tourism is the primary driver of the hotel market in the emirate

Munther Darwish: Dubai hotels will recover within one month if travel restrictions are eased

  • Dubai is gradually starting to attract visitors from Europe, Russia, India and other markets at varying rates.

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  • Munther Darwish: "The hotel market in Dubai has entered a recovery phase, and growth is expected to accelerate at a greater pace in the coming months."

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Munther Darwish, Executive Director of the Hotel «Palazzo Versace Dubai» and founder of the «Palazzo Hospitality» company, said that «the hotel and tourism sector in Dubai will fully recover from the effects of the (Covid-19) pandemic, within only one month, in the event that travel restrictions are lifted. International airports across the world », pointing out that« there is a desire and great interest, among various segments of tourists from all global markets, to spend leisure holidays in Dubai.

Darwish stated that these indicators began to appear early, after Dubai reopened its doors to the international tourism movement, starting from the seventh of July 2020, as the emirate provided various procedures and requirements, to ensure the preservation of the health and safety of all travelers, pointing out that despite International travel restrictions At that time, the emirate gradually began to attract visitors, especially from the markets of Europe, Russia, India, and other markets, at varying rates.

Domestic tourism

He said that domestic tourism is currently still the primary engine of the hotel market in Dubai, compared to international tourism, but the latter has gradually started to increase, whether for entertainment or business tourism, especially after Dubai has reopened economic and tourism activities, indicating that the international visitor can test Various tourist experiences that have resumed their activity again, including entertainment and shopping centers, museums, cinemas, restaurants, cafes and water parks.

Darwish added that about 30% of the occupancy rates achieved by the Hotel «Palazzo Versace Dubai» come from international visitors, which is a large percentage under the current circumstances. He expects these rates to gradually increase over the next few months, based on pre-confirmed reservation schedules, indicating that Airlines operating at Dubai Airport, which ranks at the forefront of the largest international airports in the world, especially Emirates Airlines and Fly Dubai, have reconnected the emirate with more than 140 destinations around the world, which will be reflected in the high rates during the coming period.

Pandemic conditions

He explained that regardless of the circumstances of the pandemic, we expect the hotel sector in Dubai to achieve greater turnout during the last quarter of this year and the first quarter of next year, according to the preliminary indicators, pointing out that the movement of confirmed reservations for hotel rooms during the coming months is very promising, adding "The hotel market in the emirate has entered a phase of gradual recovery, and growth is expected to accelerate at a greater pace over the next few months."

Darwish confirmed that the tourism sector in Dubai achieved a remarkable growth of 5.1% in 2019, as the emirate welcomed more than 16.73 million international visitors, compared with the same period in 2018, surpassing the rates of global tourism growth, while it continued to record continuous growth rates in International visitor spending rates, and the city also maintained its fourth position as the most visited city in the world for the fifth year in a row, according to the "MasterCard Index for 2019".

And he indicated that the impact of the pandemic on hotel establishments was uneven, pointing out that the establishments quickly adapted to the new conditions, by creating conditions that enable them to continue business, and resorted to applying the requirements issued by the regulatory authorities regarding safe operation protocols, and adopting precautionary and preventive measures in Various utilities.

Tourist destinations

He mentioned that Dubai is a "sign in itself", and has become one of the most important tourist destinations in the world and the most popular among the various segments, and millions of visitors visit it every year, pointing out that the emirate is no longer a luxury destination only, but has been able during recent years to diversify its tourism product in a manner compatible with Various budgets, especially with the entry of more medium-sized hotels to the market, and the increase in the capacity of entertainment facilities.

Darwish revealed that the hotel is currently recording an average occupancy rate of about 60%, and that it rises during the weekend, exceeding 75%, which is one of the high rates, indicating that the hotel resorted to raising the marketing budget during the period of the pandemic, and devised integrated promotional offers within the framework of Receiving visitors and making facilities available to them, including free checks for "Covid-19" inside the hotel facility for visitors who spend long periods exceeding five days.

He added that the hotel conducts about 60 free checks for its guests every day, in cooperation with the medical center, explaining that about 17% of reservations in the hotel are long stays for dealers from the local market or international tourists, explaining that the hotel has not terminated the services of any of its employees because of Pandemic conditions.

And he indicated that the hotel put forward a promotional offer that allows customers to book hotel accommodations at the current price, and use it within a year from the date of booking, pointing out that the offer was widely welcomed, as the number of reservations reached about 17.5 thousand hotel nights.

A plan to open a hotel project

Munther Darwish, CEO of the Palazzo Versace Dubai Hotel and founder of the Palazzo Hospitality Company, said that the company is currently planning to open a hotel project on a beach site in Dubai, pointing out that the project is still in the study stage, and it will be close to the boutique hotels that are distinguished With a limited number of luxurious rooms, and a distinctive design in the construction and location, to have a special character and innovative services for guests.

Darwish stated that there is a specific segment of visitors and from various global markets, preferring to stay in elegant and small facilities in terms of size, and provide luxury services to guests, regardless of costs, pointing out that the Emirate of Dubai is one of the most prominent destinations for the rich and famous around the world. We expect a wide demand for the hotel if it enters service in the future.

An economic stimulus package to support the sector

Munther Darwish said, "The Emirate of Dubai launched a third economic stimulus package worth 1.5 billion dirhams last July, within the framework of supporting the business community in the emirate, which made it easier for hotel establishments to deal with the effects of the pandemic and manage their operations and operating costs."

Darwish explained that the initiative to recover hotel and restaurant establishments was approved for half the value of the hotel sales fee, which amounted to 7%, for the period from July to December 2020, in addition to recovering half of the value of the “tourism dirham” fee and extending until the end of next December, and the validity of the initiative to freeze the application was also extended Classification fees on hotels, ticketing and issuance fees, and other government fees on entertainment and business events.

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