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What does the future have in store for Dubai hotels?

More than 50,000 hotel rooms are expected to be delivered in the UAE in the build up to Expo 2020, in order to provide accommodation with the anticipated 25 million visitors who will come to the country over the course of the six-month event.

The question facing the hospitality sector is what will happen when the Expo is over?

Will the market experience an imbalance of supply and demand, or will it have matured and learned to survive on lower occupancy or yields?

More importantly, how will the market keep up with travellers who are spending less on accommodation in a city where most hotels are in the luxury category?

Also, is it strong enough for hotels to pass on the newly introduced cost of VAT onto the customers?

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Arabian Business team members Jeremy Lawrence and Bernd Debusmann discuss what the future holds.

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