The CEO and founder of a Dubai-based hospitality group remained optimistic on Tuesday despite facing a raft of new restrictions as the emirate cracked down harder in a bid to halt the spread of coronavirus.
Sunset Hospitality Group’s Antonio Gonzales told Arabian Business that the sector would preval despite the challenging environment.
He previously warned there could be more restrictions for Dubai’s hospitality sector if the rules weren’t respected, and he was proven to be right as authorities tightened restrictions as violations continued.
On Tuesday morning, hotels, restaurants, shopping malls and entertainment venues began their working day implementing a host of new measures brought in by Dubai’s Supreme Committee of Crisis and Disaster Management as it stepped up its fight against coronavirus.
In a release by Dubai Media Office, the committee said that hotels must operate at a maximum 70 percent capacity for the rest of this month, with new bookings complying with the new capacity limit. The moves came following a “marked increase in the number of violations of precautionary measures.”
Last week, Gonzales called on tougher action for venues breaking the rules, and warned the public that more restrictions would come if it didn’t play its part.
But despite the setback, Gonzales (pictured below) believes the sector can prevail. “Yes, overall is a challenge for all hospitality industry, but once again, the government has a global view and best perspective to take the right decisions.
“I remain positive that with the efforts of everyone, we will get out of the pandemic faster and ultimately stronger.”
The new rules cover shopping malls which must also operate at 70 percent capacity while restaurants and cafes are required to close by 1am. All pubs and bars are to close for the remainder of the month.
A 50 percent reduction in capacity will also be imposed on indoor seated venues including cinemas and entertainment and sports venues while the capacity of swimming pools and private beaches in hotels must be limited to 70 percent of normal capacity. There is also a suspension on music being played at restaurants, pools and beaches.
The committee also said it will introduce tougher penalties for “deliberately disregarding” the measures although it did not immediately say what the penalties would be.
Arash Darabnia, director consulting, CBRE, said: “The cap on hotel occupancy rates is expected to impact mostly the best performers in the market, especially on peak demand days. Some resorts have recorded high occupancy rates above 70 percent over the last few months but this was mostly driven by the number of public holidays and demand from Europe.
“The overall impact is expected to be limited as the month of February does not contain public holidays and demand from Europe is under pressure. The capacity limit on hotel beaches and pools can be expected to have more impact as hotels will be able to accommodate fewer external guests, hence potentially reducing revenue generation slightly.
“The restrictions on F&B and entertainment venues seem to be more restrictive, and expected to impact commercial activity in these segments in the short term. However, the medium to longer term positive benefits of bringing infection rates down surpasses the short-term effects of putting these restrictions in place.”
Philip Wooller, area director STR, Middle East and Africa, added: “Although hotels have been operating at over 70 percent capacity through the holiday season and into January for the next few weeks I would expect the numbers on the whole to be below the 70 percent capacity as required so the effect on hotels accommodation side will be negligible.
“Steps will be taken to reduce the number in the food and beverage outlets and their will be some impact here – particularly in the indoor venues.”
Another Dubai venue operator speaking to Arabian Business remained bullish, saying that the inside table capacity rule would be doable, for now, as most customers want to sit outside but added that if the restrictions were still in place in April, some restaurants could be in trouble.
He added that the 1am limit should also be manageable although would hit business on Thursday and Friday nights.
During the last three weeks, Dubai Tourism have issued more than 200 violations of noncompliance with guidelines and closed down around 20 establishments.
On Monday, February 1, authorities revealed 2,948 new Covid-19 cases, dipping back down below 3,000 after a record high last week came within touching distance of 4,000.
The UAE currently ranks second globally in the daily vaccine distribution rate per 100 people with more than 3 million doses administered so far.
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