Property slump ‘biggest challenge’ for Dubai hotels
by Joanne BladdThis email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 20 January 2010
The president of Fairmont Hotels & Resorts has branded the collapse of Dubais real estate industry the single biggest challenge facing the emirates hospitality industry.
In the peak of the property boom, the engine of Dubais economy, hotels leaned heavily on its custom to fill their rooms and were left with few alternatives when the real estate market slumped, said Thomas Storey.
I think the single biggest challenge this destination has right now, is that a lot of the business of this destination was driven by real estate…and all of the follow-on business associated with that, you know, all of the designers, all of the architects, all the engineering firms, all the heat, light, gas. When that started dialling back, unfortunately Dubai doesnt have a lot of other industries to fall back on, he said.
Related: EXCLUSIVE: Fairmont Palm Jumeirah delayed over funding
Related: Mideast tourism drops 6% but H2 recovery seen
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RevPAR at the Fairmont Dubai, a figure reflecting a hotels average daily room rate and occupancy, was down more than 25 percent in 2009, he said.
I think were still feeling it [the real estate crash] and I think Dubai will feel it for a while.
My concern about Dubai has always been, does it end up not having enough runway? In other words, you get to a point where youve got to start diversifying that business base in a way that, if you have a shock to one segment, youve got other segments to fall back on.
Last week, it was report that the UAE would see a recovery in tourist numbers this year with arrivals picking up even further in 2011.
In its latest report on the country’s tourism prospects, Business Monitor International said they were upbeat about the sector long-term, despite being hit last year by the effects of the global economic downturn.
It said although it maintained a "rather poor outlook for the UAE in the short term", it saw visitor numbers rebounding this year and next, without giving specific numbers.
refered by …… -> http://www.arabianbusiness.com/
url is -> http://www.arabianbusiness.com%2F579…r-dubai-hotels