Hotels across the UAE expect to be close to full occupancy during Christmas and New Year in an otherwise slow year as they cash in on the peak season high room rates.
Occupancy levels, which have dipped this year because of the slowing economy and an increase in hotel supply, is hovering at about 90 per cent during the festive season, with steady room rates compared with last year, according to hoteliers.
Atlantis the Palm is booked 90 per cent this week for Christmas and New Year, with year-end room rates similar to last year’s prices.
“But the pace is looking positive so we expect an even higher occupancy closer to the date,” said Ravini Perera, a spokeswoman for the hotel.
The room rates are at their peak this time of the year, even though many of the hotels have the same prices as that of the same period last year.
Occupancy in UAE hotels fell by 2.9 per cent to 75.6 per cent in October and the average daily rate (ADR) declined by 9.6 per cent to Dh668.05, the lowest for the month of October since 2005, according to data from research company STR. It was the 22nd month in row in which year-on-year ADR has dipped as supply grew.
Revenue per available room – a key industry performance indicator – plunged by 12.3 per cent to Dh505.34 in October.
Al Ghurair Arjaan and Rayhaan by Rotana in Dubai are expecting a full occupancy during this period with no change in room rates from last year, said Patrizia Bernardi, a spokeswoman at the hotel. The all-inclusive Rixos The Palm expects to have around 90 per cent occupancy during the season with rooms filling up fast. The average daily rate increased by 6 per cent this year during Christmas and New Year, compared to last year, said a spokesman at the property.
Abu Dhabi city’s hotels expect an increase in the number of guests during Christmas and New Year compared with rest of the year. On the weekend of New Year’s, Abu Dhabi hotels are forecast at around 90 per cent occupancy rate, according to the Abu Dhabi Tourism and Culture Authority.
“The traffic of visitors from other neighbouring emirates, especially Dubai and Al Ain to Abu Dhabi, is expected to increase over the festive weekend,” said Desmond Hatton, the general manager at Dusit Thani Abu Dhabi.
At Abu Dhabi’s Beach Rotana, the occupancy rate is expected to be at about 90 per cent during Christmas and it is fully booked for the New Year.
“There is a shift in market segments with more leisure travellers now,” said Mathieu van Alphen, the general manager at Beach Rotana Abu Dhabi.
The property, which has 12 food and beverage outlets, expects to increase its revenues from food and beverage sales during the period.
In Al Ain, which is a popular destination during the season from staycationers as well as tourists, the four-star Danat Al Ain Resort expects to be 85 per cent full during the period.
“There is a slight drop in business against last year as in 2015 Christmas and New year were on the weekend and that was a bonus for all weekend destinations,” said Ahmed Margoushy, the general manager of Danat Al Ain Resort. “Rates are almost at par with last year, but definitely the little drop in the occupancy will impact the bottom line.”
In Ajman, some of the properties reported a full-house.
“The majority of our guests this season are from the leisure segment, mainly from the [Commonwealth of Independent States] region and Russia,” said Iftikhar Hamdani, the cluster general manager of Ramada Hotel and Suites Ajman and Ramada Beach Hotel Ajman.
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