DUBAI'S HOTEL SECTOR DEMONSTRATES RESILIENCE WITH 11.1% CAGR IN FORECASTED INVENTORY OVER 2017-19 TO REACH 35.5 MILLION OCCUPIED ROOM NIGHTS
20 February, 2018
Dubai’s diverse and vibrant hospitality sector is forecast to experience strong, sustained growth over the coming years, with occupied room nights set to reach 35.5 million annually in 2019, representing a robust 10.2% compound annual growth rate (CAGR) over the next 24 months.
According to a comprehensive study of the market by Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism), the emirate’s room supply is set to reach 132,000 by the end of 2019, growing at a 2-year (2017-2019) CAGR of 11.1%. Meanwhile, occupancy levels are forecast to remain at an extremely healthy 76-78% despite growth in capacity, maintaining the attractiveness of the sector to hotel investors and developers. The strong competitiveness of the sector is set to continue to be fuelled by increases in Dubai’s growing international overnight visitation and targeted increases in length of stays [LOS], supported further by recent and upcoming tourism attractions and experiences. With concerted efforts to raise awareness in both established and emerging source markets, the duration of travel from new and existing segments are expected to see further growth in the medium term, positively impacting demand for room nights, which is in turn expected to outpace visitor growth over the coming 24-48 months.