STR predicts double digit slump in Dubai

Hotels operating in Dubai are set to post double digit percentage decreases in revenues and rates in August, according to STR Global's preliminary data for the month.

Based on daily data from August, Dubai reported increases in supply (up 6 percent) and demand (up 4.3 percent).

Occupancy rates for Dubai hotels showed a 1.7 percent decrease to 74.2 percent while average daily rate (ADR) slumped by 12.5 percent to AED587.50.

The STR Global data also showed a 13.9 percent decrease in revenue per available room (RevPAR) to AED435.66.

According to STR Global analysts, the exchange rate between the Euro and the UAE Dirham favours outbound tourism.

At the end of June, Oanda showed that exchange rate to be at its lowest since the first quarter of 2003 while Oxford Economics projects the number of UAE arrivals in southern and eastern Europe will grow by eight percent for 2015.