Hotels outperform pre-pandemic levels

Dubai’s hospitality sector, which is integral to the emirate’s destination promise and overall growth of the tourism industry, continued to perform strongly, surpassing pre-pandemic levels across all hospitality metrics – Occupancy, Occupied Room Nights, Guests’ Length of Stay, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR).

TT Bureau

Average occupancy for the hotel sector in 2023 stood at 77.4 per cent, among the world’s highest, increasing from 72.9 per cent in 2022 and exceeding the 75.3 per cent average occupancy in 2019. The high occupancy level is an exceptional achievement, given an overall 19 per cent increase in room supply in 2023 compared to 2019.

Milestone 150,000 room keys achieved

Dubai’s hotel inventory at the end of December 2023 comprised 150,291 rooms at 821 establishments, compared to 146,496 rooms available at the end of December 2022 across 804 establishments and 126,120 rooms available at the end of December 2019 across 741 establishments. Last year’s achievement reflects the growth in the hospitality industry.

Occupied room nights surge to record high

In 2023, occupied room nights soared to a record high of 41.70 million, marking a 11 per cent increase compared to 2022 (37.43 million). This growth also represents a substantial 30 per cent rise from the pre-pandemic figures of 2019, which saw 32.11 million occupied room nights.

Reflecting the commitment of the city and hospitality sector to offer competitive pricing, the 2023 ADR of AED536 matched the ADR in 2022. The hotel sector’s robust performance is also evident in its RevPAR growth – an increase of 6 per cent compared to 2022 (AED415 vs. AED391) and a growth of 33 per cent over the pre-pandemic period of 2019 (RevPAR of AED312). Guests’ Length of Stay was 3.8 nights in 2023, a 10 per cent increase from 3.4 nights in 2019.

His Excellency Issam Kazim, CEO, Dubai Corporation for Tourism and Commerce Marketing (DCTCM), said: “As Dubai continues its exponential growth in alignment with the D33 Agenda set forth by our forward-thinking leadership, we remain committed to further elevating our standards and to advancing with innovative and distinctive world-class infrastructure, experiences and attractions.  The extensive range of offerings and Dubai’s reputation as a secure, inclusive and accessible destination have been consistently recognized across multiple global indices, culminating in the city being crowned \No.1 global destination for an unprecedented third year in a row in the Tripadvisor Travellers’ Choice Awards 2024.

Our partners have played a crucial role in achieving this top ranking through their contributions to Dubai’s tourism expansion and the industry’s rapid resurgence, especially with their active involvement in our global campaigns and marketing endeavours. The sustained success will further enhance visitors’ enduring trust, confidence and affinity for Dubai, as it accelerates towards the goal of becoming the best city to visit, live and work in, and ultimately converting visitors into long-term residents. We are strategically harnessing the significant momentum generated during a highly successful 2023 to drive growth across all segments of tourism. As we look forward to welcoming more visitors in 2024, the unwavering support of our public
and private sector partners will be pivotal in enhancing our capacity.”