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Some luxury hotels in the UAE are charging up to Dh10,000 per night during the busy New Year’s Eve (NYE) period, according to industry experts.
“Currently, we are in peak holiday season especially with New Year’s Eve celebrations being right around the corner, where average prices have increased substantially,” said Joseph Karam, group director of operations at Ishraq hospitality. “Average prices range from Dh500 for budget hotels and can easily go up to Dh10,000 for the more luxury hotels.”
NYE is always one of the busiest times for the UAE as the country attracts tourists from all over the world. “Dubai is one of the favourite destinations for leisure travellers during this time,” said Madisse Matar, director of sales and marketing at Crowne Plaza Dubai Marina.
“The magnificent display of fireworks, the gorgeous weather, Dubai Shopping Festival, and the tourist attractions are all significant contributors to the justified hike in hotel prices around the city.”
Several premium hotels like the Atlantis and Address Downtown are completely booked for the period while other hotels like Address Dubai Mall are charging in excess of Dh7,000 per night for a stay between December 30 and January 1.
Most people travelling to the UAE are not just interested in booking a hotel stay but a complete package.
“Our highest-priced property is a Triplex with an infinity pool overlooking the Palm and (Ain Dubai),” said Vinayak Mahtani, CEO of bnbme holiday homes. “It comes with a butler chauffeur and Rolls-Royce transport.”
The ultra-luxurious package is booked out from December 24 till January 8 at an undisclosed price — but it is the most expensive package the company has sold so far.
Other industry experts agree that most visitors look for packages to go with their stay. “We had family packages that include complimentary ticketst to parks and resorts,” said Santosh Bhandari, assistant director of sales at Grand Millennium Dubai Barsha Heights. “It had created a good demand in specific markets.”
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Most of the demand for hotels depends on their location. “Leisure destinations and beach properties — such as JBR and Palm Jumeirah — are very popular, as well as Downtown Dubai where guests can enjoy views of the Burj Khalifa,” said Karam.
According to Matar, the demand for location also depends on where the visitors are from. “Within Dubai, every area has its own perks, those from the Indian sub-continent prefer more of Deira–Bur Dubai area,” she said.
“[Those from Eurasia / CIS region prefer] a higher average length of stay, therefore, they opt for resorts at the Palm Jumeirah and Bluewaters Island. The American, South American, British and European demographics prefer the Marina area. We currently have more British guests in-house than any other nationalities.”
In the case of homestays, Mahtani said the group has seen the highest demand in the Bluewaters area. “We are seeing rates exceeding Dh2,000 per night for a two-bedroom apartment in the area,” he said.
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Dubai welcomed 7.1 million international visitors in the first half of the year, creating a positive impact on the country's hospitality industry.
“The occupancy rate of Dubai hotels during the first half of 2022 reached 74 per cent, one of the highest in the world,” said Mark Hehir, general manager at Jumeirah Zabeel Saray.
“We have seen significant growth in the occupancy levels [and] very good demand from repeated as well as new guests. We expect to see more during the coming days.”
Other hospitality experts echoed the observations. “This year, we have seen an increase of approximately 31 per cent demand during New Year’s,” said Matar.
This trend is expected to continue. “January is usually a busy month, with business and leisure travellers alike,” he said.
“Arab Health, set to be held at the end of the month, will witness a large number of visitors and our bookings reflect the same. In Q4, Dubai will be hosting major events, such as COP 28 and Dubai Airshow, which are also expected to bring an influx of media, bureaucrats, and diplomats to the city.”
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