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The World Travel and Tourism Council (WTTC) in its long-term forecast on the opportunities of the travel and tourism sector in the United Arab Emirates stated that the revenue brought by tourists visiting the country will grow by 7.2% annually until 2015. The revenue growth is expected due to the resorts under construction, which will change the tourism sector of the country's economy beyond recognition. These are primarily mega-projects in Dubai, such as Dubai Waterfront, Dubai Marina, Dubailand and Festival City. Large-scale development of the tourism industry, and especially the impressive development of hotel infrastructure, according to the World Travel and Tourism Council, directly affects investment in the sector and will ensure a significant increase in tourists, whose number by 2015 will grow to 14 million people.
As noted by Khalid bin Sulayem, Director General of the Dubai Department of Tourism and Commerce, projects such as Jumeirah's Madinat Jumeirah, Mall of the Emirates, the Palm Islands, Burj Dubai, Dubailand, Dubai Festival City, Dubai International City and Dubai International Financial Centre have attracted visitors from Europe and the USA. He also stated: due to the opening of these projects, it is expected that spending by visitors to Dubai will increase exponentially. So where will tourists live and what will they spend money on?
Here are the numbers
Today, the volume of Dubai's hotel market is about 24,000 rooms in hotels of various categories. By 2010, an additional 18-20,000 rooms will be brought to the market. Over the past decade, the average growth rate of hotel supply in Dubai averaged 7% per year, while demand for these services grew by 10% annually. This ratio clearly shows that the market is able to absorb any volume of supply and reduce the negative impact of new supply. In other words, no matter how many hotels are built, they will not be empty.
The peak demand for hotels occurs in autumn, winter and spring, which is associated with an increase in the flow of tourists from European countries. However, the recently emerged tradition of holding meetings, conferences and business meetings in Dubai's luxury hotels has made seasonality less noticeable. Currently, hotel occupancy is about 86%. True, last year this indicator decreased slightly due to the opening of new hotels (Park Hyatt, Mina Al Salam, Al Qasr, Grosvenor House, etc.), which attracted some travelers.
The hotel services market in Dubai is divided into two sectors: hotels located in the coastal area of Jumeirah and city hotels. The main clients of five-star hotels in Dubai are Europeans, with their demand accounting for 47% of all demand for rooms in five-star hotels. In city hotels, the share of Europeans is only 28%.
The share of Russians among Dubai hotel guests is only 1%, but 8% of them are clients of five-star hotels. Probably, counting on their appetites, many restaurants on the Jumeirah coast now offer Russian cuisine alongside Arabic and European. By the way, occupancy of hotels on the Jumeirah coast is over 90% with an average price of a double room from $500.
Entertainment unites
Hotels themselves would not be of such interest to tourists if there were no places for entertainment. In terms of entertainment, Dubai surpasses many resorts. From mid-January to mid-February, a shopping festival with big discounts on goods is held here, and in summer the festival 'Dubai Summer Surprises' takes place. Golf clubs, equestrian centers, go-karting, ice rinks and yacht clubs operate year-round. Dubai is already becoming a center of global yachting. Mega-yachts and trolling boats, including tall ships (sailing vessels with high masts) built right here in the Emirates, and Olympic-class yachts feel at home here. Yachting occupies a central place in Dubai's development program. Shipyards building modern yachts, charter and diving vessels are operating and developing.
The Dubai World Cup horse race with the largest prize fund in the world has been held since 1996 in the last week of March. By the way, profits and capital can be freely taken out of the country. In February, you can visit an open tennis tournament. The construction of a racing circuit with a track for auto racing has been completed, and in November this year one of the stages of the FIA GT World Championship will be held there.
But perhaps the main entertainment that the local tourism industry is betting on is golf. The development of golf in Dubai began in the mid-80s, but already today there are 8 golf courses and the Dubai Desert Classic International Tournament (an official stage of the European PGA) is held. Dubai's immediate plans include the creation of Dubai Golf City, a large-scale sports and entertainment complex that will feature five championship golf courses, a luxury hotel, over 2,000 private chalets and villas, and a golf academy.
One of the most modern clubs in Dubai is located on the Jumeirah coast in the new residential area Emirates Hills. This is the Montgomerie Dubai Golf Club. The luxury villa area Jumeirah Islands and the high-rise tower area Jumeirah Lake Towers are in close proximity to these golf clubs, and from Palm Jumeirah the distance to the golf clubs is no more than 5-7 minutes by car.
Resort paradise
Travelers who would like to spend more time in Dubai should consider purchasing apartments in a hotel or resort accommodation. One of the most fashionable trends on the global foreign real estate market is monolithic construction of resort complexes, where high-class hotels with rich infrastructure are combined with apartments or villas that can be purchased as property. Such hotels exist in Barcelona, Paris, Milan, London and many other tourist centers. And, of course, in Dubai.
Interestingly, those who buy property at a resort seek not seclusion but communication, and with people of their own circle. As a rule, all kinds of active recreation are used as a unifying force. At the same time, the additional infrastructure created by hotel operators makes the vacation quite diverse. But the main thing is that the property owner gets the opportunity to use it for some time during the year, and the rest of the time, with the help of the hotel operator, rent it out and make a profit. Under this scheme, for example, you can buy apartments at the Movenpick Hotel & Residence Laguna Tower Dubai from the well-known international developer IFA Hotels & Resorts.
Another good example is the upscale golf resort Zimbali Coastal Resort, managed by the Fairmont hotel chain in the Republic of South Africa (RSA), in the suburb of Durban on the seacoast. The hotel part managed by Fairmont is relatively small, while ready-made villas and plots for villa construction are freely located around two golf courses. In Dubai, on the trunk of Palm Jumeirah, three residential projects with different concepts are currently under construction, managed by the Fairmont hotel chain. These are Fairmont Palm Residence, Palm Residence, and Golden Mile.