BrazilFour Deloitte charts on Dubai’s hotel performance in 2021
Global consulting firm Deloitte has released its latest analysis of the hotel scene in Dubai. A round-up of the report’s key findings in four charts.
Across all hotels in Dubai, occupancy and revenue performance in 2021 was up considerably on the year previous, lifted in particular by strong performance in the second half of the year.
In 2021, occupancy rose by 35% to 66% overall for the full year, while the revenue per available room (RevPAR) rose by 74% to AED 393. The average day rate (ADR) jumped by 29% to AED 594.
Where do Dubai’s foreign visitors come from? The largest majority continues to come form India, with around 750,000 visitors noted in 2021 (less than half the 2019 mark due to Covid-19 travel restrictions).
Visitors from Saudi Arabia, Russia, the United Kingdom and the United States rounded off the top five. Notably, the number of visitors from China plummeted by 92% compared to two years previous.
Vis a vis other major touristic cities in the region, Dubai had the highest occupancy rate in 2021. Jeddah, the sole city to have a higher average day rate, saw its average occupancy rate grow to 51%, while Saudi Arabia’s capital city of Riyadh booked an overall occupancy rate of 58%.
At a global level, Dubai’s hotels were among the leading performers across the key metrics assessed by Deloitte. Paris, Rome and New York were the star performers in terms of year-on-year change in RevPAR, while at the other end of the spectrum, hotels in Buenos Aires (which lean a lot on international tourists) and in Sydney (which faced a border closure for tourists) took the largest hit.
Looking ahead into 2022, Dubai’s successful handling of the Covid-19 pandemic and the Expo 2020, as well as the global recovery in tourism, are expected to see further improvements to the local hotel industry.
