Global and regional rental service-providing firms are gearing up for a surge in the influx of visitors and business travellers to the UAE and Saudi Arabia during the current summer season and beyond, as the two countries shift strategies to make cities such as Dubai, Abu Dhabi and Riyadh year-round destinations for travellers.
Proptechs such as Silkhaus, Colife and BetterHomes are leveraging their B2B networks and sales teams to drive occupancy in the current summer season and beyond, while international vacation booking platforms such as Airbnb, Booking.com and Quora are said to deploying innovative region-specific promos amid campaigns run by Dubai and Abu Dhabi as destinations for all seasons are attracting holidaymakers in droves, industry players said.
Riyadh, on the other hand, has commenced with promoting the capital city as a growing weekend leisure market.
“The campaigns [by Dubai, Abu Dhabi, etc] are playing a crucial role in attracting guests even during the current summer season, previously considered among low-seasons, to attract travellers to the popular Gulf city destinations,” Peter May, Vice President of Operations at Silkhaus, told Arabian Business.
“Travellers are increasingly looking for cost-effective ways to experience the city, particularly during non-peak times, keeping companies like ours quite busy to cater to the rising demand,” he said.
This year, the campaign by Dubai focuses on the evolution of the city beyond being a seasonal destination, transforming into a 360-day destination choice, while Abu Dhabi pushes the theme, with the “One Summer Isn’t Enough” campaign.
“We’re seeing heightened demand even for the summer season,” said a senior executive with a Delhi-based outbound tourist operator.
May said rental providers are also seeing surging demand because of an increase in room tariffs by traditional hotels.
Recent data showed Dubai topping Google’s search trends for summer holidays in 2024, which is anticipated to lead to rise in demand for accommodations.
Promoting indoor shopping, sports activities to beat the heat
Industry players said Dubai is strongly investing in summer activities, marketing itself as a year-round destination, with the city’s tourism authorities promoting indoor shopping and sports like padel – a popular cross between tennis and squash – to overcome its image as an unbearably hot place best avoided in summer.
Additionally, many people are moving to Dubai permanently, with the summer being the preferred relocation period, contributing to a significant influx of new expats to the city, they said.
“This summer, the focus is on two key segments: Holidaymakers seeking alternatives to traditional hotels, and with the UAE’s year-round appeal due to various activities, it’s becoming a destination for all seasons,” the Silkhaus’ senior executive said.
Ilnara Muzafyarova, CEO of Colife, a Dubai-based property management firm operating globally, said with Dubai’s infrastructure developing at a faster pace and businesses growing opening branches in the emirate, more and more people are coming for business trips to set up operations.
“They are just interested in short-term rent [accommodations],” Muzafyarova told Arabian Business.
The Colife top executive said 1-2 room apartments are in the top search queries, and the demand is growing geographically beyond Dubai to include Saudi Arabia and Bahrain.
Muzafyarova said the campaign by cities such as Dubai and Abu Dhabi to make them year-round destinations for travellers is paying off in a big way.
“Wow, it does help, we see a huge difference in it,” she said.
Muzafyarova, however, said as for the current summer season, there is a growing number of business travellers rather than tourists, so her firm chose to target this segment to stay on track.
Relocating to the UAE, Saudi Arabia pushing up demand
Senior executives at property management firms said they are also seeing a huge jump in demand for short-term rentals on account of families and business professionals relocating to the UAE or Saudi Arabia.
“These guests typically look for short-term rentals like ours during the new season, especially before the back-to-school period,” May said.
Industry insiders said they are also observing guests increasingly utilising indirect booking platforms like Property Finder and Bayut, which cater to longer lead times and extended stays, essential during summer.
The surge in demand comes even as Dubai is estimated to have seen a 35 percent annual growth in the number of property listings for rentals this year.
May said with more supply of apartments becoming available, Silkhaus will be able to meet the rising demand this year.
He, however, said while markets like Abu Dhabi and Riyadh are facing a shortage in the supply of rental properties, the robust efforts by the government tourism boards are continuing to drive demand to these cities.
“Looking ahead, we anticipate Saudi Arabia’s business travel segment to grow, and potentially take the larger share of our demand.
“This will also remove seasonality in the Saudi market, positioning it for year-round growth,” the Silkhaus senior executive said.
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