Dubai’s economy is mainly dependent on its tourism industry not on oil resources. Hotel industry and modern trends are geared up in this sector. Since this region is hit by financial crisis, tourism industry has also been going through some tough times. That is why most of the hotels observed the sharpest drop in revenues for 2009, according to a survey.

Occupancy and average daily room rates have declined in the whole region. According to data compiled and provided for the hotel industry, the overall region’s occupancy in 2009 is dropped by 10.9 to 62.0 percent and average daily rate decreased by 2.7 percent, revenue per available room decreased 13.3 percent and the largest drop in revenue per available room is falling to 31.4 percent.

Dubai has faced the recession slump badly but it is most probably just a time lag; it will follow the other regions that came out of this cycle on the recovery path. Before the slumped situation, when emirates’ construction boom began, luxury hotels, resorts, beach hotels and holiday villas mushroomed and attracted tourists in a great numbers. After the economy crisis people are also bewildered and have tighten their budget, they are not ready to invest but to save. Prices have become unsustainable and to cope up with this situation, owners have started offering tenants rent-free period and flexible payment terms, along other perquisites.

Funding issues and nervousness about the hotel market has also delayed the opening of several hotels that have been completed on the neighboring Jumeirah Beach. That is why serious buyers are not in more numbers as compared to shoppers and tourists.

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