The increasingly competitive pricing of tourist accommodation by the UAE’s biggest players is putting added pressure on the smaller operators.
According to the Khaleej Times, star ratings are no longer an indication of price, with many 4 and 5-star rooms being offered at 3-star rates.
Russel GH Sharpe, Chief Operations Officer of Citymax Hotels, said it would be increasingly difficult for smaller hospitality players to bear this pressure.
2020 has kick-started a boom in the construction of new hotels. However, with the economic slowdown predicted to continue, supply is outstripping demand.
Figures revealed in the article suggest that Dubai currently has 370 live hospitality projects worth $40 billion (Dh147 billion) out of 543 projects across the UAE. The total value is put at $71.6 billion (Dh262.77 billion).
UAE reportedly has over 130,000 rooms currently, with around 40,000 rooms in the pipeline or under construction. The Emirates is expected to account for 90 per cent of the leisure tourism market in the Middle East by 2020.
https://www.khaleejtimes.com/business/economy/uae-hospitality-on-a-roll
