Dubai’s hotel industry has entered a price war with room rates being slashed by as much as half as hoteliers attempt to attract tourists hit by the financial crisis.
The damaging effect of Europe’s recession, Dubai’s largest tourist source market, has caused visitor levels to plummet, with occupancy rates down 25 percent on those enjoyed at the same time last year.
“We are entering a price war as most hotels in Dubai are cutting their rates,” said Amine Moukarzel, the Senior Vice President and Managing Director of the Dutch-Swiss Golden Tulip group.
“The situation is very dire indeed and I believe that all hotels in Dubai are experiencing much lower rates than last year because people right now are really starting to cut down on travel budgets,” Mr Moukarzel said.
According to Habib Khan, CEO Planet Group, many hotels in Dubai have seen occupancy rates fall to between 60 per cent and 70 per cent from the 80 per cent and 90 per cent levels in the same period last year.
Hilton hotels have slashed their prices by up to 50 per cent on weekend breaks for bookings made before the end of August this year.
The enticing offer is valid in 220 hotels – Hilton, Conrad Hotels and Resorts, The Waldorf-Astoria Collection, Doubletree by Hilton and Hilton Garden Inn – across 45 countries including the Middle East, the company said.
Hilton Dubai Creek, known for its Gordon Ramsay Verre restaurant, is offering rooms at the affordable starting rate of Dh530 (US$144) compared with Dh1,944 last year, while Hilton Al Ain is promoting rates from Dh435, down from Dh870.
Weekend rates at the Hilton in Ras al Khaimah have also dropped to Dh460 from the Dh920 being charged at this time last year.
The recently opened Atlantis in Dubai has addressed falling occupancy rates by enforcing a minimum 7-night stay policy during the holiday period.
The DTCM announced a plan last week which will pave the way for Dubai to double the number of tourists it receives to 15 million annually by 2015.
“The DTCM will launch a new marketing campaign aimed at increasing the number of tourists and visitors during the Dubai Shopping Festival [which starts on Jan 10] till mid-February,” said a DTCM spokesman.
The plan includes more attractive discounts on room rates, ranging from 40 per cent to 60 per cent, in addition to a 25 per cent discount on the prices of food and beverages.
Khalid Ahmed bin Sulayem, the director general of DTCM, said the campaign was part of an effort to sustain tourist attractions throughout the year.
The campaign will use the internet, press and industry promotions to cover the UK, Germany, GCC states, India, China, Japan and Australia.
“It is no surprise hoteliers are expecting a tough year ahead but I think that we can overcome these challenges by offering attractive discounts and deals,” said Eyad Abdul Rahman, the executive director of media relations and acting director of business development at the DTCM.
“We have no plans to revise our tourism targets, so to put it simply we will achieve the goals that we have set out.”From: etravelblackboardasia.com
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