Dubai’s hotel developers will have to deliver 10,000 hotel rooms and/or service apartments per year by October 2020, just before the historic World Expo 2020 starts – to be able to cater to the anticipated tourism demand.
According to the Department of Tourism and Commerce Marketing (DTCM), the emirate’s tourism industry regulator, investment in Dubai’s hotel industry is expected to pick up in the next four years with additional 40,000 serviced hotel rooms and hotel apartments to be added to the existing inventory of 100,000 – to serve the anticipated 20 million hotel annual guests by 2020, in addition to the 25 million visiting the World Expo 2020.
Of the 100,012 hotel rooms and hotel apartments available in Dubai, 31,953 or nearly 32 per cent belong to the five-star category while 22,108 rooms fall under business hotels or four-star category and 21,104 rooms fall under 1-3 star rating.
The DTCM expects occupied room nights in hotels and hotel apartments to reach 35.9 million, representing a 10.8 per cent compound annual growth rate (CAGR) from the end of 2015 to the end of 2018. As such, the overall room supply is expected to reflect similar growth, reaching 134,000 rooms by the end of 2018, DTCM projects.