As the UAE prepares to host an influx of visitors for high-profile events like the COP28 climate talks and the F1 Grand Prix, hotel occupancy in Abu Dhabi and Dubai is projected to hit new highs, industry insiders told Arabian Business.
The usual busy season for hospitality and tourism – typically between November and January – has unfolded much earlier than expected for some due to F1, COP28, and other major industry events being held at the Dubai World Trade Centre.
“We have witnessed a substantial surge in hotel occupancy during the F1/COP28 period,” Thomas Kurain, Hotel Manager at Leva Hotels, told Arabian Business.
“Our current advanced booking rates are standing at a promising 60 percent for the November-December period. The combination of ongoing and scheduled events suggests that our occupancy rates will continue to climb, making us optimistic about achieving an even more impressive year-end performance for city hotels.”
Dubai and Abu Dhabi’s mega events
The F1 season finale will return to Abu Dhabi’s Yas Island Circuit from November 24 to 26, with lots of supporting events including concerts with A-list superstars headlining. COP28 will be held in neighbouring Dubai a few days later, from November 30 to December 12, expecting to draw over 45,000 delegates to discuss urgent climate action. The back-to-back mega-events are primed to drive tourism in both cities.
The last UN climate talks, COP27, were held in Egypt’s coastal town of Sharm El-Sheikh last year which drew in 100 heads of states and governments as well as 35,000 participants, while the F1 Abu Dhabi Grand Prix drew in over 160,000 visitors who celebrated Max Verstappen’s championship win.
Both events demonstrated the drawing power of high-level international summits and elite sporting events to the region, and the UAE’s tourism sector is set to cash in on the upcoming influx of visitors.
Hospitality industry experts forecast the events to surpass earlier editions in both attendance and economic impact.
IHG Hotels and Resorts, with a presence of around 30 hotels in the UAE alone, stands to gain significantly during this period, said James Britchford, VP Commercial IMEA.
“COP28 will be the most significant event in 2023, and we are expecting our hotels in Dubai to have high occupancy, with a few properties targeting a full house,” Britchford told Arabian Business.
“Our hotels on Yas Island will be highly impacted by the F1 weekend, with a likelihood of selling out. We’re also anticipating the demand to impact hotels throughout the rest of Abu Dhabi.”
This was also echoed by Antoine Nasrallah, Director of Sales and Distribution at St. Regis Dubai The Palm.
“The upcoming high-profile events in the country have impacted the business very positively. COP28 is shaping up to be a key driver, and we have started seeing an increase in demand versus the previous years,” he said.
With the arrival of cooler autumn weather and holiday season festivities also on the horizon in the fourth quarter, industry stakeholders expect the tourism uptick to continue building in the lead-up to the marquee November/December matchups and beyond.
“Having been in the UAE for 13 years, I have witnessed first-hand the tremendous growth of tourism in the country. The government has done a spectacular job of differentiating the two major tourist destinations – Dubai and Abu Dhabi – offering a unique value proposition,” said Nasrallah.
IHG’s Britchford said he expects the hotel group’s Dubai properties to surpass ore-Covid performance while its Abu Dhabi properties are already on track to target 24 million visitors, compared to 18 million in 2022.
The event and gigs period will lead to major returns in tourism for both cities, said Kurian of Leva Hotels, especially for city hotels and resorts, leading many establishments to increase room rates significantly.
Leva hotels’ room rates rose 20 percent during this period compared to the same period last year, indicating the potential for “a significant upswing in tourism revenue,” said Kurian.
“The UAE’s National Day and the associated holidays in late November and early December play a significant role in bolstering occupancy rates as well. With this confluence of events and high demand during the season, we strongly recommend that visitors planning to travel to the UAE secure their accommodations well in advance,” he said, adding that accommodation costs are expected to be much higher.
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