Dubai will need to attract an extra 2.5 million tourists each year to cater to an estimated 60% increase in hotel rooms over the next five years, according to a report by Deloitte LLP.
The company concluded that the emirate would possibly struggle to maintain occupancy rates as an additional 30,000 rooms come online on top of the existing stock of 50,000.
Average hotel occupancy has fallen to 70% from 80% in 2007, while RevPAR has dropped roughly US $60 from $300.
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Despite the drop, compared to other markets this is still a strong return and some hoteliers have said that they believe Dubai, with its infrastructure, large marketing campaigns and strong regional carriers will be able to suck up the increase in inventory.
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Dec 9, 2010 , Kuwait
Had to decrease visa charges which is too expensive comparing to other GCC states