According to the Department of Economic and Tourism, Dubai has just experienced its best Q1 performance this year since pre-pandemic years. Visitors are flocking through the doors of Dubai hotels in droves and this incredible post-pandemic success paints a vivid picture of the city’s drive to become the most visited destination in the world.
With 1.78 million overseas visitors stepping onto Dubai’s pristine shores, March was the highest-performing month in quarter one resulting in an 11% increase in tourist arrivals from pre-pandemic times. Dubai hotels in particular have shown significant growth and performed strongly throughout Q1 when assessed under core hospitality metrics. As a result, the city has now reached the number one position for hotel room occupancy rates in the world.
This impressive start to 2022 demonstrates the undeniable power of Dubai as a leader in global recovery for the tourism and hospitality sectors. While the world economy was being rocked by the onslaught of the pandemic, the emirate was hard at work analysing the changing needs of its tourists, residents and businesses. By utilising new technologies, investing in innovative architecture and implementing progressive policies to usher in a new era, Dubai has positioned itself as one of the most desirable destinations in the world.
Hotels Lead Recovery with Innovative Investment Schemes
Q1 2022 has been of special note for Dubai hotels with the duration of guest stays, the average daily rate and occupation percentage all beating out pre-pandemic years. Another reason for the marked success of Dubai hotels has been the sustained interest from both domestic and international investors.
One example of this is the SLS Hotel in the Burj Khalifa district, which recently introduced the concept of DLD approved Fractional Ownership – the first of its kind in the city and one that has proven to be an incredibly popular option with investors. Offering exceptionally low entry points for the chance to invest in a portion of a hotel room, this fully-complete hotel in one of Dubai’s hottest areas allows investors the safety of a 10-year guaranteed return of 7%*.
It is with a constant focus on customer experience that the Dubai hotel scene has become such a favourite of both tourists and investors alike.
Attractions and Awards
Demonstrating a flawless cohesion between the tourism, entertainment and hospitality sectors, Q1 2022 has also seen the opening of a range of new landmarks, entertainment attractions and leisure facilities across the city.
So much fresh appeal for a wide demographic of travellers has not gone unnoticed. For its efforts, Dubai has received numerous awards and accolades celebrating its diversity and tourist appeal, being voted as the top destination for ‘City Lovers’ and coming in fourth in the world for ‘Food Lovers’ in the Travellers’ Choice Awards 2022 by Tripadvisor.
Dubai’s gastronomical scene is nothing short of mouth-watering and 2022 has already brought some fresh offerings to the table, with the imminent launch of Michelin Guide Dubai in June – a food-lover’s bucket list of upmarket eateries from world-renowned chefs. With over 12,000 restaurants in the city, there is something for every culture, budget and taste. The timing couldn’t be better for the arrival of fine dining critique brand Gault&Millau, whose recent premier event at Dubai’s iconic Burj Al Arab was attended by world leaders in hospitality.
A Safe City for Tourists
Another reason for Dubai’s success in the tourism sector is its long-held reputation of being one of the safest global destinations for travellers. With the pandemic just barely behind us, Dubai has already established itself among the top 3 locations in the world for safe, sustainable recovery, including having one of the highest vaccination rates among nations worldwide.
Dubai’s commitment to safe practice in all areas of tourism has accounted for much of its success in welcoming overseas travellers back to its shores. Health and Safety strategies have been reinvigorated with progressive policies during this time while keeping the focus on the customer experience. With new hotel developments implementing innovative architecture and technology to maximise both safety and customer enjoyment, Dubai’s tourism sector will undoubtedly see another year of high performance and record numbers.
Global Events that Pushed Q1 Growth
Expo 2020 was a resounding success that Dubai will continue to benefit from in the coming years. 192 countries took part in the international event, designed to showcase the best in science, technology, innovation, food and culture. The simple aim of bringing everyone together is reflected in Dubai’s diversity; a city where everyone is celebrated. This stunning event lasted for six months in 2021 and attracted over 24 million visitors.
Following on from Expo 2020 have been a wide variety of other global events, giving tourists that long-awaited sense of freedom and joie de vivre that Dubai is famous for. Events included the Dubai Shopping Festival, the Dubai World Cup and the Dubai International Boat Show.
2022 is set to be another big year for events, with the upcoming 25th edition of Dubai Summer Surprises; a huge family-friendly event promoting Dubai’s wide appeal for adults and children alike, which is often a USP of Dubai hotels that cater as much for the little ones as for their parents with a vast array of play areas, splash zones and other fun activities to see and do.
A Smart, Sustainable World
One relatively new aspect of tourism is a strong emerging desire in people to act sustainably, preferring an eco-friendly approach to travel. In Dubai, this has been a major theme among new developments, utilising government-backed initiatives to meet new green targets. This involves reducing emissions, waste and carbon footprint while increasing the number of recycled materials and ethically sourced products. Development programmes have also been specially implemented to encourage simple yet effective lifestyle changes that have already resulted in a huge reduction of waste and lowered carbon emissions.
Investment in Dubai Hotels
With tourism levels reaching an all-time high in the city and prospects on the rise, now is a great time to explore the option of hotel investments. This is still a widely unexplored niche for property investment and one that offers a huge range of unique benefits and excellent return on investment.
Having the lowest void periods in the world is a huge achievement and one of the biggest reasons to consider adding a Dubai hotel room investment to your portfolio. Dubai is a city committed to delivering the highest quality for investors, tourists and residents alike, with government policies and visa options offering exceptional living experiences to overseas investors, as well as the chance to invest in a long-term income-generating asset.
Are you interested in Dubai hotel room investments? Contact us.