Following an industry-wide slump in occupancy levels in the last quarter of 2009, some of the leading hotels in Dubai have reported a comeback during Dubai Shopping Festival that concludes on February 28, according to a report.
Naeem Darkazally, area director of Sales and Marketing, Rotana Dubai & Northern Emirates told the WAM daily: "We can feel the recovery and indeed we are very optimistic for 2010. I am glad to announce that our properties in Dubai - all 11 hotels - are running close to cent per cent occupancy rates during DSF 2010."
Luxury hotel Kempinski Mall of the Emirates reported receiving a very good response to its F&B and shopping room package tailored especially for Dubai's shopping festival celebrations
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"The shopping room package has sold very well," said Naser Fawzi, Sales and Marketing Manager. "We started February with a slight increase in occupancy, and we expect to close February with at least five percent higher occupancy than 2009."
Fawzi anticipates a 7-10 percent increase in occupancy levels for Kempinski during the festival period.
According to WAM, last year, before the shopping festival, Kempinski just had a 65 percent occupancy level. When the festival ended, its occupancy rate had jumped to 75 percent.
Meanwhile, Southern Sun, operators of Al Manzil and Qamardeen hotels, believe that their occupancy levels will surpass last year's figure. "This year, we are cautiously optimistic that we will finish this shopping festival period eight percent ahead of last year's occupancy rate," Ruth Hulatt, Complex Director of Sales and Marketing told the newswire.
The influx of tourists to Dubai hotels during DSF is driven mainly by visitors from the GCC. According to Fawzi, Kempinski's biggest feeder market is Saudi Arabia, followed by the other emirates mainly Abu Dhabi, and then Qatar and Kuwait.
In the case of Southern Sun, whose Al Manzil property recently topped Trip Advisor's Popularity Index in Dubai, their visitor profile consists mainly of visitors from the GCC (35 percent), Europe (40 percent), and the rest from Asia, Africa, the Americas and Oceania.
Many hotels have had to slash rates to lure in more tourists, but the bigger lure has been the shopping discounts, rewarding promotions and a variety of cultural and artistic events that DSF puts together every year.
Hotel room rates in Dubai are unlikely to improve until the end of 2011 or even 2012, CB Richard Ellis' hotels expert said on Sunday.
Julian Kemp, associate director, CBRE Hotels EMEA, said globally rates would remain deflated in 2010 but a recovery in Dubai might take longer because the emirate was dependent on leisure markets improving.
"Leisure travel may take longer to improve and therefore leisure sector rates may remain depressed...with a large proportion of demand for Dubai hotel rooms generated from the leisure sector, rate improvement may take longer toward the end of 2011 and beginning of 2012," Kemp added in a statement.
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