Dubai's hotel developments defy economic downturn

In line with Mintel's predictions that the decline is not expected to impact significantly on the luxury holiday market, Dubai has recently unveiled a series of new projects, reaffirming its position as the leading global luxury destination. And, with an ever-increasing number of international visitors flocking to Dubai, the emirate's hotel market is clearly booming.

There are currently 50,306 hotel rooms in Dubai and this number is predicted to increase exponentially to accommodate the projected upsurge of 15 million tourists anticipated by 2015, compared to 6.9 million visitors in 2007. And in the first quarter of 2008 alone Dubai has shown that it's well on its way to meeting this target with hotel occupancy reaching 1,891,253 international visitors, an increase of almost 7% compared to the same period in 2007. The UK and Ireland market continue to drive these figures with hotel occupancy reaching 224,457, a huge 11.3% increase on the same period last year.

The large scale developments planned over next the seven years will be an additional catalyst for the already burgeoning hotel industry. The number of hotels and hotel apartments is expected to increase to 488 by 2010, up from 452 in 2007. And by 2016 this number is expected to grow to 554, with a room capacity of 127,000. Figures for Dubai's hotel and tourism sector overall demonstrate the buoyancy of the market, according to the latest report from the World Travel and Tourism Council, growing by close to 14% annually.

Over 100 leisure related projects worth some £35bn are currently underway in the emirate and the tourism industry now accounts for almost a quarter (22.6%) of Dubai's annual GDP. Additionally this sector is expected to generate £40bn in revenues and contribute 6.4% directly to the UAE's GDP in 2008, expanding to almost £70bn by 2018. And the further £8bn fleet increase planned by Emirates in tandem with the £2bn expansion by Dubai International Airport clearly testifies to the emirate's commitment in attaining this goal.

The plethora of iconic and visionary projects being announced ensures Dubai's position as a pioneering world-class luxury destination which caters to all markets. Whether you are looking for an activity packed family holiday or a luxurious spa break for two, Dubai really will exceed all your expectations.

One of the emirate's most exciting new developments, Atlantis The Palm, is scheduled to open in September 2008 and will boast a 50-acre waterscape with a marine park featuring more than 65,000 sea creatures. Regarded as the flagship resort on The Palm Jumeirah due to its scale, awe-inspiring design and wealth of entertainment opportunities, Atlantis, The Palm will significantly boost Dubai's premium family product.

Emaar has also announced that its newest offering The Address, Downtown Burj Dubai will open later this year. The 63-storey tower promises a true 5-star experience in close proximity to the world's tallest building, Burj Dubai, and the world's largest shopping and entertainment destination, The Dubai Mall.

Dubai recognises that luxury need not always be on a large scale. Nestled away in the desert is Per Aquum's new boutique enclave Desert Palm. The elegance and detailed design of the property complement its unique setting in a lush polo estate. The grounds are dotted with 24 guest suites and pool villas, embodying elegance and laidback luxury.

Further visionary collaborations will bring about another world's first when the Armani Hotel makes its international debut at Burj Dubai early next year. The hotel will occupy the first 37 floors of the soaring tower, and will offer the ultimate experience for aficionados of the Italian designer's signature sophisticated style.

Ian Scott, director of the UK and Ireland representative office of Dubai Tourism and Commerce Marketing, comments on the emirate's illimitable hotel market:

"Dubai's reputation is based on delivering luxury across the board and we continue to be delighted by the performance of hotel and leisure sectors. We are immensely excited about the new hotel developments on the horizon and are confident that this will be reflected in market trends. Occupancy figures and future bookings provide a very encouraging picture of the tourism landscape, demonstrating that Dubai is an extremely attractive destination for an ever-increasing number of tourists."