Good days ahead for UAE hotels

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Good days ahead for UAE hotels
Ras Al Khaimah will soon house the Anantara Resort & Spa within Mina Al Arab. The property will feature Ras Al Khaimah's first Maldives-inspired overwater villas.

dubai - New attractions and improved air connectivity draw more global visitors

by

Rohma Sadaqat

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Published: Fri 20 Jan 2017, 6:51 PM

Last updated: Fri 20 Jan 2017, 8:58 PM

The outlook looks bright for the UAE's hospitality sector as it posts steady growth, driven by regional and international tourist arrivals, a strong retail scene and new entertainment attractions and festivals, say experts.

sssAccording to an Alpen Capital report issued in the second half of 2016, more than 136,000 hotel and serviced apartment rooms are likely to enter the GCC hospitality market, taking the total inventory to nearly 770,000. Of these, the UAE and Saudi Arabia are anticipated to witness an addition of more than 60,000 and 47,000 rooms respectively by 2020.

The UAE's hospitality sector revenue is anticipated to reach $9.8 billion by 2020, translating into a 10.8 per cent annualised growth from 2015. The UAE hospitality industry will see expansion due to the huge potential inflow of tourists for the Expo 2020 to be hosted in Dubai.

Alper Can Bulcum, cluster general manager of Ramada Plaza Jumeirah Beach and Ramada Sharjah, told Khaleej Times that both the hotel properties had maintained their success during 2016.

"The majority of the periods have been very busy for us, and although there are changes in the market, we follow trends in order to gain accordingly," he said. "Seasonality plays a huge role, not only for the incoming business into the city, but also into our hotels. During important events such as the Arabian Travel Market, Cityscape as well as breaks such as GCC holidays, we see the usual occupancy increase and experience advance bookings."

"Soon, we will be seeing Blue Waters Island open. The percentage of tourists visiting the UAE will increase, so there will be a lot more opportunities and competition around. What we need to do and continue doing is to ensure that we are fully aware of all the opportunities around us to target accordingly," he added.

Theme parks, festivals and connectivity
Can Bulcum said that festivals such as Eid, Christmas and Easter are among the busier periods for hotels in the UAE. In addition, he noted that as the Expo 2020 draws closer, more hotels are opening in the country and great local attractions are being established such as Dubai Parks and Resorts, IMG Worlds of Adventure and Dubai Garden Glow.

According to Ignace Bauwens, regional vice-president for the Middle East & Africa region at Wyndham Hotel Group, the recent opening of the theme parks would have a strong impact on the UAE's hospitality sector.

"Our hotels have been performing very well and we expect to see a very healthy growth in the coming months as the UAE market continues to mature. The UAE's hospitality segment has diversified over the years; we have seen a focus on the corporate division, the Mice segment, the leisure division and now, with the opening of the new themed attractions, we can expect to see a natural next step towards the entertainment segment," he said.

Bauwens also noted that the improved air connectivity from the UAE's carriers and the increase in the number of destinations by budget airlines has increasingly put the UAE on the map for global travellers. The new theme park attractions, combined with the improved air connectivity, will result in hotels posting an increased average length of stay in the coming years, as families seek out travel packages that will allow them to visit different emirates and experience their offerings.

Developers eye other emirates
New hotel openings in the UAE haven't been limited to just Dubai and Abu Dhabi as developers seek to make the most of the opportunities that other emirates present.

RAK Properties recently signed a Dh30 million enabling works contract with Al Nuaimi Group for its upcoming Anantara Resort & Spa within the Mina Al Arab development. The property will feature Ras Al Khaimah's first Maldives-inspired overwater villas, four restaurants, a spa and other leisure facilities. The hotel will be Minor Hotels' first venture in the emirate.

RAK Properties' managing director and CEO Mohammed Sultan Al Qadi said: "Once construction is complete, Anantara Mina Al Arab Ras Al Khaimah Resort & Spa will form a key part of the international hospitality offering of our largest development in the emirate."

In addition, R Hotels and Wyndham Hotel Group have announced an agreement to open the first Wyndham Garden in the UAE. The Wyndham Garden Ajman Corniche is expected to open by Q4 2017 and will be a 17-storey, four-star hotel with 179 rooms.

Wyndham Garden Ajman Corniche, with a total investment of Dh200 million, will be the fifth collaboration between R Hotels and Wyndham Hotel Group in the UAE and the third in Ajman. R Hotels owns two Wyndham-branded hotels in the emirate - the Ramada Hotel & Suites Ajman and Ramada Beach Hotel Ajman.

Iftikhar Hamdani, cluster general manager of the two Ramada hotels in Ajman, said: "Ajman has witnessed an increase in tourist arrivals this year and we are getting a lot of support from the Ajman Tourism Development Department in attracting new markets and promoting the destination."

- rohma@khaleejtimes.com


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