Dubai Sees Decrease In Occupancy Levels

DUBAI, UNITED ARAB EMIRATES— Travel from Western markets to Dubai has suffered over the past six months. Hotel occupancy rates fell to an average of 56.5% for 2001, which marks the lowest occupancy rate since 1992, according to a recent report on www.eturbonews.com. Intra-GCC travel compensated for the losses in terms of visits, but the economic impact will be felt well into 2002 as more lucrative Western travel will remain suppressed. Middle Eastern and other Arab countries account for one third of all visitors. Europe and Asia represent close to 50% of all visitors. Russia, combined with other Former Soviet Union Republics, represents about 10% of the market. Although these Soviet travelers used to travel to Dubai for commercial shopping, recent analysis indicates that the trend has been  changing gradually, with more Russian tourists coming to Dubai purely for vacation reasons. Due to its geographic location and the general perception among Americans about the security situation in the Middle East, it is not surprising that North American visitors represent only 4% of the market. In 2000, Dubai received more than 2.8 million international visitors. Heavy marketing in Europe, Asia, and the Middle East resulted in visitor arrivals growing at close to 15% annually over the last 10 years. To keep up with demand for travel and tourism services in Dubai, the hotel industry has been adding, on average, eight major hotels per year, which has increased room capacity by approximately 1,700 on an annual basis. SOURCE: www.eturbonews.com