Why Are Dubai Hotels So Popular?

Posted by rajaram patil on September 3rd, 2019

Teeming with five-star hotels, beaches, luxury malls, and newly minted landmarks, Dubai is a city that aims to be the most popular tourist destination in the world by 2025. As indicated by MasterCard’s Global Destination Cities Index, Dubai is already the fourth most visited city in the world, with a projected16.7 million visitors this year. If you have been looking forward to visit the city it would interest you to know that currently there are 703 hotels in Dubai, which collectively have a room count of 111,864. It is also fascinating to know that contrary to popular opinion, only 20% of rooms in Dubai are in one to three-star hotels. And the development is continuing to grow steadily with every passing year. Currently, the city is gearing up to host the World Expo in 2020, and expectedly, it will host 25 million visitors during the six-month event.

By the end of next year, Dubai is likely to have an increase in hotel rooms, with the number rising to 132,000 and additionally 53 more five-star hotels will open before 2020. The most advantageous part of visitors is that they can bag lucrative deals on top-notch hotel accommodation in Dubai that would cost a fortune in the US or Europe. However, that also brings to notice an alarming truth about the hotel industry, that there has been a considerable lack of demand for rooms, but too many hotels opening. According to experts and industry researchers, average room rates in Dubai had dropped to a lowest point in 14 years, thanks to pressure from increased supply. Reports have also suggested that even the best hotels in Dubai to stay witnessed a fall in occupancy and revenues for October, that beginning of the high season, despite marked growth in demand.

The business hub of the Middle East, Dubai has garnered huge attention through several innovative large construction projects and sporting events. It is also the most expensive city in the Middle East and hotels are rated amongst the highest priced in the world. Despite that, according to a U.S. global consulting firm, Dubai was rated as one of the best places to live in the Middle East by Mercer.