Dubai has emerged as a top destination for travellers this year, outpacing its 2019 performance by 14 percent, as the global travel industry recovers from coronavirus, said Puneet Chhatwal, managing director and CEO, Indian Hotels Company Limited (IHCL).
Speaking exclusively with Arabian Business following the launch of Taj Exotica Resort & Spa, The Palm, Chhatwal said the “bleisure” market, where people travel for business and add a few days of leisure is here to stay, as family members from different generations travel together to make up for the time lost in the pandemic.
Chhatwal also discussed IHCL’s expansion plans highlighting the importance of the Middle East market to the hospitality group.
Please comment on the recovery of the region’s hospitality industry from the pandemic? When do you expect to get back to pre-2019 level?
Dubai has become the top destination for global business travel this year, as the UAE has seen the strongest travel recovery of any country, according to data from travel technology firm Travelport.
Figures show bookings to Dubai in 2022 are outpacing its 2019 performance by 14 percent. Bookings across the entire UAE are currently up 10 percent from 2019 levels, higher than any other country in the world. The emirate ranks fifth in the world in terms of recovery for individual destinations
Can you comment on the recovery of business travel versus leisure?
Corporate travel has made up nearly one-third of Dubai’s total bookings this year. The UAE is at the top of the list of global business travel destinations so far in 2022. The recovery in leisure is much higher than that in business.
Hosting major events including Expo 2020 Dubai and the Dubai World Cup horse race have contributed to the recovery.
What travel trends are you seeing across your properties?
Travel is slowly reinstating itself, and 2022 is going to be a transitional year. Tourists now travel less often and prefer to stay at one destination for longer periods of time.
The effects of the pandemic have also led to more family travel, with members from different generations traveling together in a bid to make up for lost time spent apart during lockdowns.
Bleisure (business and leisure) is here to stay for the immediate future, where guests initially travel for business and extend their stay at a location for leisure.
Where does the group see the most potential for hospitality in the region and what are their expansion plans?
The Middle East is a significant market for IHCL, as is demonstrated by our presence in the region with Taj Dubai since 2015.
The company has also signed another Taj hotel at the Deira Creek in Dubai in partnership with Ithra Dubai LLC, a wholly-owned subsidiary of Investment Corporation of Dubai (ICD), and part of Deira Waterfront Development.
IHCL has partnered with Umm Al Qura Development and Construction Company for the first Taj hotel in Makkah, Saudi Arabia. The hotel will be located in the King Abdul Aziz Road project.
The Middle East will continue to be a strong focus area for IHCL in the next couple of years for the development of the Taj brand. We will explore opportunities to expand the brand in destinations such as Riyadh, Jeddah, Abu Dhabi, AlUla among others.
We have seen substantial customer crossover between India and the Middle East, with Indian travellers visiting Taj in the region and with travellers from the Middle East, particularly from UAE, KSA and Kuwait, representing a high proportion of guests that are experiencing our hotels worldwide. The Middle East ‘gateway’ markets are a big priority for our expansion plans.
Why did you choose the Palm for this latest property and what will it be adding to the hospitality industry on the island?
Dubai is among the top travel destinations of the world and the Palm with its vibrant lifestyle, dining and cityscape offers travelers a unique experience. This island oasis is Dubai’s paradise-like playground for the world’s most discerning travellers.
With an ever-growing influx of tourists to the Palm, it’s an ideal location for our luxury brand of Taj Exotica Resort & Spa. It will strengthen our brand portfolio in the UAE and complement the other two city hotels at Jumeirah Lakes Towers and Business Bay catering to business and leisure segments.
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