Dubai Hotels Show Stability Amid US-Iran Tensions and Staycation Offers
Dubai hotels remain stable amid US-Iran conflict shocks. Courtesy staycation offers
The Economic Times
Image: The Economic Times
Despite geopolitical tensions affecting travel, Dubai's hotel rates remained stable in April, largely due to staycation offers aimed at residents. Average rates showed only a slight decline, indicating resilience in local bookings, while cancellations impacted overall pricing more significantly.
- 01Average hotel rates in Dubai remained stable in April, with only a 1.3% decline.
- 02Staycation offers for residents contributed to the stability in hotel bookings.
- 03Cancellations caused a more significant drop in average rates, from AED 270.51 to AED 214.79 (20.6%).
- 04Indian Hotels Company (IHCL) reported a slight increase in average rates for its Dubai hotels.
- 05Analysts expect an uptick in tourism as global air connectivity improves.
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In April, Dubai's hotel rates remained 'broadly stable,' with average new booking rates declining only 1.3% from AED 137.28 to AED 135.54. This stability is attributed to staycation offers targeting local residents, compensating for the drop in international travelers due to geopolitical tensions. However, when cancellations are factored in, average rates fell significantly from AED 270.51 to AED 214.79, marking a 20.6% decline. Saurabh Tiwari from the Indian Hotels Company noted a slight increase in average rates for its hotels, which rose from AED 484 to AED 485.36 during the same period. Looking ahead, analysts like Deepak Jain predict May could see improved performance as international flights to Dubai increase, despite a projected 60-80% drop in tourists during March-April.
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The stability of hotel rates could benefit local residents looking for staycation options, while the decline in tourist numbers may affect the broader hospitality sector in Dubai.
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