Economic Downturn has caused troubles in almost all fields of life but its effects are especially visible in tourism and hotel industry. Dubai is no exception either, tourism has declined and consequently, Dubai hotels’ rates have also decreased. However there are always two sides of the pictures, being optimistic, we can derive some positive hope out of this gloomy situation. Positive side is that declining hotels room rates are attracting more tourists and it is a healthy sign for both Dubai tourism and its overall economy.

This decline means that Dubai Hotels are becoming more affordable. 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 can cast the image of lavish and deluxe spots in tourists’ minds. In addition to its high-rise hotels, their advertisements and lack of public transport contributed to Dubai Economic issue in 2009.

Tourism Consultancies boom explained that Dubai appeared as an exemplary city out of no where and its image grew too rapidly. Even when there were not enough hotels, people still wanted to visit. This image was shattered when Dubai faced economic crunch and every sector felt its after affects, hotels prices were declined and luxury rooms remained vacant. It is because every hotel is advertising itself at highly competitive rates and average daily room rates were decreased.

The occupancy level is moving up but only slightly. At the end of 2009; it rose to 71.9% as compared to last year’s occupancy level that was 64.3%.