Author : Editorial
Dubai could see an influx of tourists next year as tour operators in the United Kingdom, China and India are now packaging holidays to the emirate at more cost-effective prices, which industry sources said have "dropped between seven and 40 per cent" in the past few weeks.
While several industry insiders believe this is a direct result of the Dubai World issues making headlines internationally, a spokesperson from the Department of Tourism and Commerce Marketing (DTCM) has put all speculation to rest, saying that "while hotel room rates are now cheaper than ever before in Dubai, the only reason for this competitive pricing is because of an increase in the supply of rooms in 2010 and not anything else".
According to data released by STR Global in October, the UAE has 57,126 rooms in the pipeline, which already saw Dubai experience the largest drop in average daily rate (ADR) in the Middle East and Africa, falling 8.3 per cent to $175.62 (Dh644).
The DTCM spokesperson told Emirates Business: "Last year, the average room rate had reached $700 in Dubai. Now, with increased competition, five-star properties are more affordable."
Earlier this week, UK travel operator Thomas Cook's Chief Executive Manny Fontenla-Novoa said the company has seen prices in Dubai drop by "seven per cent" already, and that rates would continue to fall.
The Dubai-based Al Rais Travel agency, which runs an inbound tourism division, also confirmed a dip in hotel room rates, with Senior Manager of Sales and Marketing Waseem Rahmany saying: "Prices for hotels have dropped 40 per cent in some cases. And agents abroad, especially in countries such as China and India that are emerging markets, are taking advantage of this with more cost-effective packages."
"Dubai has become less expensive in 2009 compared to last year, and is once again an affordable destination for families," said Karan Anand, Head of Relationships and Supplier Management for tour operators at Cox and Kings India. He added: "Demand has already picked up, with the industry buzz for the upcoming festive season pointing towards a sellout destination."
Asked if the price structure would continue into the second quarter of next year, Anand said: "While it is difficult to predict how the cost will fluctuate in 2010, the average price for a five-day holiday in the emirates for one person on twin-sharing basis in a four-star hotel with airfare, visa, accommodation and transfers works out to Rs30,000 (Dh2,365) in the coming year."
This price is marginally lower than Cox and King India's Dubai Shopping Festival packages for 2009, which, industry experts said, were already quite competitive at Rs31,990 in the aftermath of the economic downturn that crippled the global tourism industry.
Zubin Karkaria, India's CEO and Managing Director, Kuoni Travel Group, said: "Dubai prices will increase next year as business is coming back to the emirate."
DTCM spokesperson said: "Next year, rates would average out to closely match figures of 2009. What we are doing is moving away from aggressive marketing campaigns and special deals in traditional markets such as the UK and Europe and concentrating on emerging markets such as Iran, India, China, Japan and Russia."
He said this move was in lieu of the negative growth recorded in those locations, as travellers from Europe have become more price conscious, adding: "Inbound tourism from the GCC market has retained its stability, while Asian markets hold the key to future growth."
According to market data released by DTCM, the number of hotel establishment visitors from the UK dropped by 7,406 for the second quarter of 2009, when compared to the same period in 2008 with 195,310 visitors. India, on the other hand, witnessed the largest increase with 138,418 visitors in second quarter 2009, compared to 23,840 less visitors in Q2 2008.
"Indian travellers are opting for more short-haul destinations these days, and hotel properties such as Atlantis The Palm offer the Disneyland resort experience without requiring them to travel all the way to Europe or the United States, and at half the expense. This will always work in Dubai's favour in the long run," said Karkaria.
Source:Emirates Business 24/7
Source : Emirates Business 24/7
