Study reveals in 2013, Saudis and Indians were top visitors to Dubai

According to a new study of the region’s tourism, hospitality and leisure (THL) industry, high demand for Dubai hotel rooms, despite doubling of supply Saudi Arabia drove the largest number of visits to

Dubai in 2013, followed by India and the UK. The report also says that looking to the future, key growth markets for Dubai are likely to comprise Saudi Arabia, the Russian Federation, India and Iran.

The quarterly reports titled “Middle East Hotel Market Insight,” launched by Deloitte and STR Global aim to underline key trends and analysis on the Middle East’s THL industry.

Grant Salter, director, THL industry at Deloitte Middle East, said, “The growth in Dubai’s hotel supply in 2013 was more than matched by the growth in demand as evidenced by the rise in occupancy in 2013. This rise in room supply and the ongoing growth in demand, when seen in the context of the wider global economic challenges, points to a very robust hotel market. Dubai has established itself as one of the leading global tourism hotspots. With significant ongoing investment in tourism infrastructure, we expect Dubai to continue to climb the global tourism rankings.”

“Despite the large supply growth in Dubai over the past few years, the market has been able to absorb the supply, and performance continues to tick upward. Demand continues to stay strong, and in 2013 the luxury segment’s demand was back to its previous peak levels. Average Daily Rates (ADRs) for luxury hotels in Dubai rose 3.5 per cent in 2013. We expect Dubai’s occupancy to report slight declines in 2014 and 2015 while ADR and revenue per available room (RevPAR) to continue to grow at a slower pace than the previous years,” said, Phillip Wooller, Area Director, STR Global.

The sustained growth in demand, fuelled by ongoing improvements in tourism infrastructure and strong hotel operating performance, has inspired continued investor interest in hotel development in Dubai.