Heavily discounted rates for GCC travellers is proving effective in increasing hotel guest numbers at a time of fewer visitors from Europe. The Emirates Palace hotel, managed by the Kempinski Hotel group, is offering GCC residents a special summer rate of Dh900 (US$245) for its standard room, compared with Dh1,250 for everyone else, while its luxury suites start from Dh2,800, down from Dh3,350.
"While European leisure visitors have reduced in some periods versus last year, this has been replaced by an increase in GCC guests," said Janet Abrahams, the director of sales and marketing at Emirates Palace. "Overall rates achieved are similar to last year since we have a growth in the number of guests booking suites," Ms Abrahams said. The hotel expects the number of GCC guests to more than double over the summer compared with last year as a result of the offers, she said.
The Abu Dhabi Tourism Authority (ADTA) has identified the GCC as a particularly important part of its quest to attract 2.3 million hotel guests a year by 2012, lowered in May from the authority's previous target of 2.7 million because of the economic crisis. "The GCC is vitally important as Abu Dhabi moves forward in its aim of becoming an international destination of distinction," said Ahmed Hussein, the deputy director general of ADTA.
Abu Dhabi had 21,000 hotel guests from the region in the first three months of this year, according to ADTA. "We think that figure can be substantially increased with our Gulf neighbours representing a prime market," said Mr Hussein. ADTA plans to stage a GCC roadshow twice a year to promote the destination, he said. The capital has also hosted familiarisation trips for members of the GCC media. Other hotels in Abu Dhabi, including the Shangri-La and the InterContinental, are offering special rates for GCC visitors in a strategy that has been used by hotels across the UAE in previous years as they try to lure guests in the slower summer season.
"The GCC market has always been important to us," said Adrian Rudin, the general manager of the Shangri-La hotel in Abu Dhabi. "We see a high volume of GCC residents travelling around the region during the summer each year." Mr Rudin said the hotel had experienced a slight increase of GCC visitors so far this year, compared with last year, as a result of its summer offers. But this year Hilton has launched its first summer promotion for GCC residents at its Dubai hotels, offering discounted room rates and 20 per cent off restaurants, spas and leisure activities.
Hilton said in a statement that domestic travel had become increasingly important given the global economic climate, with June occupancy boosted by an increased number of travellers from the region. "Our sales and marketing activities are strongly focused on maintaining a strong GCC presence for the summer months," said Claudia Siebecker, the director of business development for Hilton Dubai Jumeirah and Hilton Dubai Creek.
But other hoteliers, while recognising the value of tapping new markets, are concerned that the reduction in rates will make it difficult for prices of Dubai hotels to return to their peak once the market picks up. "We recognised that the visitors from UK and other parts of Europe will not be travelling to the UAE in the same numbers as previous years," said Arshad Hussain, the director of business development at The Monarch in Dubai.
"The Monarch Dubai does not follow other hotels in buying volume by reducing rates drastically." Mr Hussain said the hotel had actively sought business from other markets, including the GCC, with roadshows in countries such as Saudi Arabia and Qatar and an online auction of hotel rooms. The number of visitors to Dubai from the UK, the emirate's largest market, fell by 7 per cent in the first quarter of this year compared with the same period last year, according to the Department of Tourism and Commerce Marketing.
rbundhun@thenational.ae
