The hospitality markets in Dubai and Abu Dhabi saw a slow down over 2019, as supply to the market has pent up in advance of the expected increase in visitors in 2020 and beyond.
2020 will be a spectacular year for UAE tourism with an abundance of new attractions set to open across the region and Dubai hosting the Expo towards the end of the year for 6 months.
Tourism is an important part of the UAE economy and as such the government have focused heavily on this sector, updating policies recently to attract more visitors to the region. The introduction of a five-year multiple entry visa to UAE is set to have a huge impact on the number of visitors to the region and a positive effect on the tourism sector as a whole.
Review of 2019
As of November 2019, for the year to date occupancy across hotel categories in Dubai declined except the Upper Midscale segment where occupancy rose by over 6% versus the same period in the previous year according to global hospitality analysts STR.
Increased supply to the market resulted in the Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) declining across categories over the year.
In comparison to Dubai, Abu Dhabi had a more buoyant year with higher occupancy and a steady RevPAR recorded.
From January to September of 2019 the Abu Dhabi Department of Culture and Tourism figures showed that the emirate had welcomed 3.8 million hotel guests, almost a 3% increase on occupancy figures in 2018.
Key events such as the AFC Asian Cup 2019, Abu Dhabi Showdown Week and the Special Olympics were the divers behind increased visitor numbers. Revenue Per Available Room remained steady of saw a slight increase across the different property types.
Dubai Hospitality Property 2020
Supply of hospitality property is set to see further increases in 2020 as the country prepares to host Expo 2020 Dubai during which it expects to welcome an expected 25 million visitors throughout the 6 month period which the Expo will run.
The Expo is set to have an impact across the entire UAE with huge capital growth predictions for real estate as a result of the influx of visitors, the event is an opportunity to highlight all that the country has to offer.
As Dubai gears up to host the Expo there are several other attractions under construction which are set to attract visitors to the city. Ain Dubai is set to be the world’s tallest observation wheel will add to the list of world records to be broken by Dubai, the attraction is set to open in advance of the Expo in October.
Abu Dhabi Hospitality Market in 2020
Projects in the pipeline expected to attract more visitors to Abu Dhabi include the completion of Reem Mall which is expected to open in late 2020. The mall, which is being built at the centre of Reem Island, will have over 2 million square feet of shops and restaurants along with entertainment attractions including a cinema and Magic Planet and Snow Park Abu Dhabi.
It has also recently been announced that two more new low-fare airlines will be operating flights in and out of Abu Dhabi, a move which is expected to open access to many new markets and streams of tourists.
UAE Property Investment
There are many exciting projects in the pipeline for both Dubai and Abu Dhabi supported by the UAE government who are working to ensure the region is accessible to all nationalities.
To discuss your plans for property investment please do contact our Dubai team via email at email@example.com.