Reservations soar for a big weekend



ABU DHABI // The Red Bull Air Race and an influx of tourists from Eastern Europe have brought a surge in room reservations this weekend for hotels already reporting high occupancy rates because of near-perfect weather. Visitors from Russia and the Baltic states will be flocking to the UAE for a weekend in which they will mark Easter, which falls on April 19 in the Orthodox Christian calendar. In Abu Dhabi, they will be competing for rooms with fans arriving for the Red Bull event, which takes place over the water next to the Corniche public beach on April 17-18 and is expected to be watched by as many as 350,000 people.

Hoteliers in Abu Dhabi, Dubai, Fujairah and Ras al Khaimah have seen bookings soaring, in contrast with recent decreases as the global financial crisis hit the tourism industry. "Because of the Red Bull race we have a higher occupancy rate than usual," said Dania Malki, spokeswoman for Le Meridien in Abu Dhabi. "We still have a few rooms. Reservations are usually made a month or so before the event, but nowadays people are waiting until the last minute. During the event itself the occupancy rate will be higher."

Most of the guests are coming into the capital from other emirates, she added. Reservations clerks in Dubai hotels confirmed an influx of visitors from Russia for the Orthodox Easter holidays. One clerk in a Fujairah hotel said the boost in business was "because of the good weather, and because it's the Orthodox Easter this weekend." During the last winter holiday season, which coincides with New Year celebrations and Orthodox Christmas holidays, hoteliers reported a steep decline in the number of tourists from Russia.

Almost all of the high-end Jumeirah properties in Dubai are turning down reservation requests, citing high demand spurred by the weather. "It's just perfect weather. It's not too hot and I guess people want to get away before the summer," said a spokeswoman at the reservations desk at the Al Maha Desert Resort. At the Sheraton Dubai Creek Hotel and Towers, Deeksha Trivedi, the director of sales and marketing, said business hotels like hers have been faring well despite the downturn.

"Historically, the first quarter of the year is one of our strongest quarters with high occupancy averaging above 85 per cent and this year our numbers tell us that it's not any different," she said. "Which is a good indication that although the global economy has weakened and affected the travel trends, the demand is still there and going strong." In Fujairah, hotels are either fully booked or are expecting to be by Friday. At the JAL Fujairah Resort and Spa, the occupancy rate was at a healthy 93 per cent. Meanwhile, the Hilton Fujairah Resort was turning down guests yesterday.

Raza Abbas, the head of sales and marketing at the Hilton Fujairah, said the hotel was overbooked this weekend and that it had managed to maintain a high occupancy rate throughout the downturn. Fujairah in particular is known for being popular with Russian and Baltic tourists. Hotels were also heavily booked in Ras al Khaimah, where a number of new properties have recently opened offering discount rates for short breaks and getaways.

The new wing of the Hilton Ras al Khaimah still had a few rooms available, but the older Hilton Ras al Khaimah Resort and Spa was fully booked. The Cove in Ras al Khaimah, which opened in February, also said it was full. Maurice Di Rooij, general manager at The Cove, said many of the guests were taking an extended Easter holiday in the emirates. jgerson@thenational.ae

Company profile

Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices

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Price, base: Dh1,731,672

Engine: 6.5-litre V12

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Industry: Electric vehicles
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SPECS

Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now

The specs

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Torque: 330Nm
Transmission: Single-speed automatic
Max touring range: 402km (claimed)
Price: From Dh215,000 (estimate)
On sale: September

Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says. 

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier. 

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Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

Company Profile

Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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1. Fasting

2. Prayer

3. Hajj

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MATCH INFO:

Second Test

Pakistan v Australia, Tuesday-Saturday, 10am​​ daily​​​​​ at Zayed Cricket Stadium, Abu Dhabi

Entrance is free

ROUTE TO TITLE

Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
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Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

About Krews

Founder: Ahmed Al Qubaisi

Based: Abu Dhabi

Founded: January 2019

Number of employees: 10

Sector: Technology/Social media 

Funding to date: Estimated $300,000 from Hub71 in-kind support

 

The specs

Engine: 2.0-litre four-cylinder turbo

Power: 178hp at 5,500rpm

Torque: 280Nm at 1,350-4,200rpm

Transmission: seven-speed dual-clutch auto

Price: from Dh209,000 

On sale: now

The specs: 2019 BMW i8 Roadster

Price, base: Dh708,750

Engine: 1.5L three-cylinder petrol, plus 11.6 kWh lithium-ion battery

Transmission: Six-speed automatic

Power: 374hp (total)

Torque: 570Nm (total)

Fuel economy, combined: 2.0L / 100km

Tales of Yusuf Tadros

Adel Esmat (translated by Mandy McClure)

Hoopoe

Hydrogen: Market potential

Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.

"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.

Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.

The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.


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