Dubai Tourism: 13.7 thousand apartments until 2023, with a compound annual growth rate of 5.2%

"New visas" raise the demand for luxury hotel apartments in Dubai

The Dubai Tourism report showed a diversity in the size of the hotel market in Dubai.

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The annual report of the Department of Tourism and Commerce Marketing in Dubai confirmed that the hotel market will continue to grow in the coming years, pointing to the high demand for luxury hotel apartments, with more international visitors benefiting from the “new visa” options that enable them to travel to Dubai for work, and entertainment, for longer periods.

luxury apartments

The department stated in its report that the luxury hotel apartments category is expected to register a compound annual growth rate of 5.2% until 2023, bringing the number of these apartments to 13,782 luxury apartments.

She added that with the impact of the emerging Corona Virus (Covid-19) pandemic, which led to the curtailment of international travel, Dubai's fast-growing stock of hotel apartments and one- to three-star hotels had the highest average occupancy rates in all categories of accommodation in 2020, registering 65% and 59% respectively, and these results came despite the fact that they accounted for 20% and 17% respectively of the emirate's total accommodation inventory last year.

hotel market

The department’s report showed a diversity in the size of the hotel market, based on its categories in terms of spread in various regions, noting that the “Deira” area occupies the largest part of the hotel market in general with about 27,500 hotel rooms, while the bulk of it falls under “medium hotels.” Four-star category, followed by “Al Barsha” with 16.7 thousand hotel rooms, “Jumeirah” with 15,000 hotel rooms, and “Downtown Dubai” with more than 10,000 hotel rooms.

Visas and Programs

The report stated that in parallel with the implementation of strict safety measures to combat "Covid-19", which enabled international visitors to travel to Dubai with confidence, a new ground was created, through the development of a set of new visa initiatives and programs designed to enhance the emirate's position as a leading entertainment destination.

These initiatives are issued by the hugely successful “Golden Visa” program, which grants permanent residence in the form of 10-year renewable visas to individuals who have contributed to the success and development of society and the economy in the UAE, including investors and business leaders. Five renewable years for private investors, high school students, talented university students, and entrepreneurs, to encourage these individuals to develop long-term relationships with the UAE, which will help the country's economic growth.

Another hugely popular initiative introduced in 2020 was the "Virtual Work Program", which enabled foreign working professionals and their families to relocate to Dubai, while continuing to work remotely for employers, accelerating business and tourism growth during a period of inactivity. Unprecedented global certainty.

"Retirement in Dubai"

The "Dubai Tourism" report pointed to the launch of the "Retirement in Dubai" initiative, which allows applicants aged 55 and over, the opportunity to retire in the emirate, and enjoy many lifestyle benefits.

The five-year, renewable retirement visa also provides applicants with a package of incentives and benefits that include health care, real estate, insurance, and banking services.

The launch of a new multi-entry five-year tourist visa in 2020, which enables visitors of all nationalities to enter the UAE several times, and stay in the country for 90 days during each stay, helped in strengthening Dubai's position in the tourism sector.

Marketing campaigns

In addition, the Department of Tourism and Commercial Shopping launched marketing campaigns in major international markets, in light of the pandemic, to ensure that the city continues to maintain its image, as a preferred destination for travelers with the resumption of air traffic around the world.

Among these are the newly launched “Meet Soon” and “See You Soon” marketing campaigns, as well as providing accurate information about the situation in Dubai through Dubai Tourism’s various digital platforms, as well as continuous communication with more than 3000 partners around the world. To be aware of the steps recently taken by Dubai to return tourism activity and open the economy in all its sectors.

Dubai's Department of Tourism and Commerce Marketing has worked with its social media partners and technology companies to promote interest in the city, as one of the world's preferred destinations to visit.

Reducing costs and waiving fees

The "Dubai Tourism" report indicated that the strategic measures that collectively resulted in Dubai's performance were the result of its successful approach to dealing with the epidemic through immediate health care for the affected, strict prevention of the weak, and comprehensive vaccination programs, as Dubai was at the forefront of containing the threat of "Covid-19". “For residents and tourists, the authorities in the emirate quickly took decisive action in early March 2020 to provide support to all economic sectors, including tourism and hospitality.

He added that Dubai succeeded in reducing operational costs, while simplifying work procedures for the tourism industry, and the highlights of the package included: reducing the municipality fee by 50% on hotel sales, bringing the fee to 3.5% instead of 7%, pointing to a previous step taken in 2018 represented in Reducing the municipality fee on hotel sales from 10% to 7%.

The second initiative was to exempt companies from postponement and cancellation fees for tourism events during the year 2020.

The third initiative is to freeze the application of classification fees to hotels.

While the fourth initiative came within the framework of a package of initiatives aimed at supporting the tourism sector in Dubai, to freeze the application of ticket fees, issuance of permits and other government fees for entertainment and business events, in addition to reducing the "tourism dirham fees" by half.

Vacation home system

Dubai Tourism's annual report showed that the emirate's successful tourism diversification strategy has led to the spread of new accommodation options, especially with regard to housing units available for tourists and visitors to stay in accordance with the regulations of "vacation homes".

He added that since the introduction of the legislation governing this sector in 2015, this market has flourished in the emirate, as data showed an increase in the number of available units from 1,641 units in 2015 to 9,977 units in 2020, with a compound annual growth rate of 43.5%.

• «Deira» acquires the largest part of the hotel market with 27,500 hotel rooms.

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