The UAE's ailing hospitality sector, reeling from a fall in tourists due to the global financial crisis and swine flu pandemic, is hoping for a much-needed shot in the arm from the upcoming Eid holiday break.
Tour operators and hoteliers told Maktoob Business they expect tourist from Gulf Cooperation Council (GCC) countries to flock to Dubai for Eid, in just over a week's time, as they take advantage of bargain holiday packages.
Eid, which follows the end of the holy month of Ramadan, is traditionally a time when Arab families go on holiday.
Hotel room rates in Dubai, the Gulf's business and leisure hub, are at least 30 percent cheaper this year, according to travel agents.
Hotels have been forced to slash room rates and offer other incentives to attract guests, who have become more cost-conscious in the economic downturn.
"What you would have paid for three nights last year would get you five nights this time," said Kulwant Singh, managing partner of Lama Desert Tourism.
Occupancy levels in Dubai fell around 9 percent to 65.1 percent in July, compared to 71.7 percent for the same month in 2008, according to hospitality research firm STR Global.
Revenue per available room (Revpar), an industry performance benchmark, fell 24 percent to $107 in July, compared to $141 a year earlier, STR said.
Occupancy levels were down 15 percent in the city for the first seven months of the year, compared to the year-earlier period, while Revpar suffered a 35 percent fall.
Tourist numbers from recession-hit Europe have been particularly badly impacted, but hoteliers think Gulf visitors will more than make up the difference over Eid.
"Dubai bookings are picking up. Visitors are not only getting good room rates but also other privileges during their stay," said Elizabeth Percy, director of marketing at Planet Travel and Tours in Dubai.
A manager at Al Rais Travels said Gulf tourists have become an even more important market because of the effect swine flu has had long-haul travel.
"Only 5 percent of our bookings are from Europe, the U.S. market is finished. So far the GCC, Iranian and Indian markets are looking good," Said Mansori, who handles inbound tours, said.
Previous years hotels and tour operators had benefited from Saudi-bound religious pilgrim travel as Muslims stop over on their way to Mecca and Medina, but Saudi-bound travel has been hit by fears over swine flu.
"This year it has not been good. There have been cancellations," Mansori said.
