The Arabian Hotel Investment Conference (AHIC) has opened in Dubai with a message from HH Sheikh Maktoum Hasher Al Maktoum that hospitality stands to benefit from another global economic boom.
The executive chairman of investment bank SHUAA Capital delivered the first keynote address of the event, at the Madinat Jumeirah, and spoke about the regional economic outlook.
“I believe in 2016-2020 we could see a boom-style economy globally, once all the debt has been restructured properly, once it has been rolled over,” he explained. “I think we could see one of the biggest boom cycles.
“We’ve already had a car crash in 2008; it is unlikely we will have another one, but you never know. At the end of the day I believe the opportunity is there to have a great five years for investment.
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“The hospitality sector will be a winner. The healthcare sector will be a winner. Transportation and logistics will be a winner. Just remember, when you have a tourist coming to the country, not only does he spend money getting into the taxi and getting to the hotel, he actually comes and spends money and orders food. This money vents right through the system and everyone can benefit.
“But in order to make money, you have to put money down, and that is where the challenge is. I think it’s a good idea. I’ve personally invested in Dubai and I believe in Dubai.”
He also said that Dubai has learned its lessons from the financial crisis and that, despite the stresses put on the emirate, it had still pulled through the period, with the development of landmark projects such as Palm Jumeirah and Burj Khalifa, as well as infrastructure projects such as the Dubai Metro.
“People now can smell it, touch it, feel it; it is real,” he said. “We haven’t washed back into the ocean like some articles have said. It is a real economy. People like to live here.”
During his keynote, HH Sheikh Maktoum Hasher Al Maktoum backed up his optimism about Dubai with data showing that it has the strongest occupancies levels in the region at 88.4% and average room rates at US $398.71.
He also explained how Abu Dhabi was witnessing consistent growth in demand while across the UAE hotel room supply was predicted to increase by 5.3% annually from 2012-2016.
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