Economic Downturn has caused many troubles in almost every field of life but its effects are especially visible in tourism and hotel industry. Dubai is not an exception, tourism has declined and consequently, Dubai hotels’ rates have also decreased. However the positive side is that declining hotels room rates are attracting more tourists and it is a healthy sign for both Dubai tourism and hospitality sector.
This decline means that Dubai Hotels are becoming affordable for larger numbers of tourists. Mostly tourists around the world are looking for affordable holiday destinations and Dubai is quite popular for its luxurious destinations and marvelous hotels. High profile classic destinations cast the image of lavish and deluxe spots in tourists’ minds and in addition to it high-rise hotels, their rates’ advertisement and lack of public transport contributed to Dubai Economic issue in 2009.
Tourism Consultancies boom explained that Dubai appeared as a symbol of magnificence and opulence out of no where and this image grew with the passage of time. Even when there were not enough hotels, people still wanted to visit Dubai and it let the figures feel that what so ever you do, tourists will be mushroomed and will come there at all costs. This dream was shattered when Dubai faced economic crunch and every sector felt its after affects, hotels prices were declined and luxury rooms started becoming available to almost everyone. It is because every hotel is advertising itself at highly competitive rates and average daily room rates were decreased.
The occupancy level is slightly moving up and at the end of 2009; it rose to 71.9% as compared to last year’s occupancy level that was 64.3%. This is a positive sign without any doubt.
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