Hotels in the UAE suffered their worst year on record as the coronavirus pandemic played havoc with the country’s tourism industry, new figures have confirmed.
Industry analysts STR has revealed the extent to which the virus hit occupancy levels and revenues across the UAE’s hospitality sector, with both performance indicators falling to their lowest mark in its database.
However, December occupancy and revenue per available room (RevPAR) (AED371.24) levels were the highest in the country since February, offering hope for 2021.
Average occupancy levels in the UAE throughout last year stood at 51.7 percent, down by nearly 30 percent on 2019, STR said.
It added that average daily rates (ADR) in hotels fell by more than 16 percent to AED418.83 while RevPAR slumped by 41 percent to AED216.45.
STR said in a statement: “Each of the three key performance metrics were the lowest for any year in STR’s UAE database, but performance toward the end of the year pulled closer to pre-pandemic levels.”
Tourists also still flocked to Dubai for the New Year celebrations despite the uncertainty created by the global coronavirus pandemic, according to STR.
While Dubai hotel performance metrics returned closer to pre-pandemic levels throughout December, New Year’s Eve was the stand-out day in the month.
STR said while average hotel occupancy reached 71 percent last month, it jumped to 82 percent on December 31.
Dubai’s hotel occupancy slumped to 23 percent earlier in 2020 as the full impact of coronavirus restrictions and lockdowns took hold but December figures were boosted by the government establishing a travel corridor with the UK, which brought scores of holidaymakers to the Gulf city in November and December.
However, travel between the UK and Dubai has slumped again after the British Government removed the UAE from its travel corridor list, meaning travellers will now have to quarantine for 10 days.
Prospects for a tourism rebound in early 2021 were also dampened after Dubai Tourism suspended live entertainment in hotels and restaurants after hundreds of coronavirus violations of guidelines at venues, closing down 20 establishments.
The Department of Tourism and Commerce Marketing has ordered venues to suspend bands, DJs, dancers and live entertainers performing in hotels and restaurants until further notice.
Stricter distancing rules have also been imposed on restaurants and gyms in the city as authorities try to contain a recent surge in new infections.
Hotels in the wider Middle East and Africa also reported all-time lows in occupancy and RevPAR, according to year-end 2020 data from STR.
In the Middle East, occupancy fell more than 30 percent to 45.9 percent while ADR dropped 17.3 percent to $117.23 and RevPAR decreased to $53.77, down by 42.4 percent on 2019 figures.
Follow us on
