Abu Dhabi-based hotel operator Rotana expects an accelerated rebound in its key revenue metric this year from the Covid-19 pandemic as demand picks up, its president and chief executive said.
The group has rehired most of the employees it let go in 2020 because of the global crisis, Guy Hutchinson told The National on Monday. Revenue per available room (RevPar) – an industry performance measure calculated by multiplying a hotel’s average daily room rate by its occupancy rate – will reach 80 to 90 per cent of pre-pandemic levels across its UAE properties by the fourth quarter of 2021, he said.
The domestic recovery will be driven by Abu Dhabi removing the requirement to quarantine on arrival for vaccinated travellers from all international destinations, which will open key international markets like the UK and Germany. The six-month Expo 2020 starting in Dubai in October will also accelerate demand, Mr Hutchinson said, speaking on the sidelines of the Arabian and African Hospitality Investment Conference (AHIC) in Dubai.
RevPar for Rotana's properties across the Middle East and Africa will also grow between 75 to 80 per cent of pre-pandemic levels by the fourth quarter of this year, driven by high vaccination rates, the return of leisure and business events, and governments' engagement with the tourism sector, he said.
"In the fourth quarter there's a very significant acceleration," Mr Hutchinson said. "The fundamentals, for the UAE in particular, is outstanding. From October, we expect to be close to 80 to 90 per cent of 2019 RevPar."
Rotana, which manages properties across the Middle East and Africa under its Arjaan, Rayhaan, Centro and The Residences brands, currently generates about 50 per cent of group revenue from the UAE market, where it has 36 properties with 10,012 rooms.
Saudi Arabia and other markets in the Gulf, Turkey, Africa and the Middle East account for the rest of the business.
Across its UAE properties in the year to date, Rotana's RevPar currently stands at about 25 per cent below the pre-pandemic levels of 2019, the executive said.
"It's been beyond our expectations. Our path to recovery or rebuilding back to 2019 levels has definitely accelerated quicker than we expected and that is common across the region," Mr Hutchinson said.
"Abu Dhabi has been quite solid, Dubai has gone from strength to strength as international markets re-open, Saudi Arabia has domestically been very strong, then Qatar, Bahrain, Jordan and across the region was a very solid performance."
Rotana, which let go 800 people or 5 per cent of the group's total workforce last year because of the pandemic, began to re-hire them at the beginning of 2021.
So far this year, the company has rehired 650 people out of the 800 employees it let go. The remainder were not able to return to the company for other reasons, such as changing career paths, Mr Hutchinson said. The group's current workforce is 12,000-strong.
"As we return to pre-pandemic business levels, we need to match that with pre-pandemic service, productivity and quality," he said.
The recovery will be further supported by Expo, which is expected to drive bookings in Dubai, and the UAE's three main source markets of the UK, Germany and Saudi Arabia that have eased travel restrictions, Mr Hutchinson said.
"It's the opportunity we've been waiting for," he said. "It will drive great occupancy."
Rotana expects its Dubai-based hotels' occupancy to be in the "high 80s", with rates similar to those in 2019, as Expo begins in October, Mr Hutchinson added.
The growth boost to bookings from Expo is expected to be "absolutely sustainable" through the six months of the event's duration, he said.
Rotana, which targeted a full recovery of its portfolio to pre-pandemic levels by the end of 2022, is now "a little bit ahead of that curve", Mr Hutchinson said.
With the faster rebound, hotel rates will rise but not to "extortionist" levels, and will rebalance towards 2019 rates, he added.
The executive expects a brisk pace of hotel development in the region and beyond, and is close to signing a deal for two properties in Eastern Europe.
"I'd like to see more realistic optimism in the industry going forward," Mr Hutchinson said, noting lessons learnt from the pandemic to continue focusing on human capital and environmental sustainability.
Smart words at Make Smart Cool
Make Smart Cool is not your usual festival. Dubbed “edutainment” by organisers Najahi Events, Make Smart Cool aims to inspire its youthful target audience through a mix of interactive presentation by social media influencers and a concert finale featuring Example with DJ Wire. Here are some of the speakers sharing their inspiration and experiences on the night.
Prince Ea
With his social media videos accumulating more half a billion views, the American motivational speaker is hot on the college circuit in the US, with talks that focus on the many ways to generate passion and motivation when it comes to learning.
Khalid Al Ameri
The Emirati columnist and presenter is much loved by local youth, with writings and presentations about education, entrepreneurship and family balance. His lectures on career and personal development are sought after by the education and business sector.
Ben Ouattara
Born to an Ivorian father and German mother, the Dubai-based fitness instructor and motivational speaker is all about conquering fears and insecurities. His talk focuses on the need to gain emotional and physical fitness when facing life’s challenges. As well managing his film production company, Ouattara is one of the official ambassadors of Dubai Expo2020.
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
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