Dubai Lost 44 Percent of Its Visitors, and Hotels Are Chasing Closer Markets

Dubai’s international visitors fell 44 percent to 6.97 million in the first eight months of the year, according to the emirate’s tourism department. UAE hotel occupancy was 67.6 percent in September, down 12.3 percentage points from a year earlier, according to CoStar. Skift ties the slump to unrest in the Middle East.

The pain is uneven. Luxury and upper-upscale hotels, which rely on long-haul, high-spending guests, saw the steepest occupancy declines, while midscale properties held up better on domestic, regional and corporate demand. Operators are now leaning on short-haul markets about five to six hours away by air. IHCL, the parent of Taj, is targeting India, China and Russia, and calls India its most reliable source market during the crisis.

Prices have moved. IHCL cut rates by up to 40 percent at the peak of the crisis, and Majestic Hotels, where long stays make up 25 to 30 percent of business, expects fourth-quarter rates 15 to 20 percent below last year. AirDNA data show November short-term rental nights booked down 36 percent, narrowing to 8 percent in December and 6 percent in January.

Recovery forecasts diverge. Ishraq Hospitality expects a return to 2025 levels this quarter, while IHCL does not expect business to reach 2025 levels until the fourth quarter of 2027. For travelers, discounted rates and flexible long-stay deals may be the upside, but check current advisories before booking.

Sources: Skift