Dubai's hotel room inventory is expected to reach 54,000 in 2010, a massive 40 percent increase on figures for 2008, a leading regional hospitality figure said on Sunday.
Sami Al Ansari said the huge increase in the number of rooms available presented the next challenge for the hotels sector, which had struggling this year amid the global economic slowdown.
Ansari also said: "2009 has been extremely challenging for the hospitality industry in Dubai, the drop in demand for hotel rooms as a result of the recession coupled with a huge increase of 17 percent in rooms inventory drove occupancy down by 15 percent and revenue per available room by 35 percent so far this year as compared to 2008."
He added: "Signs of improved demand for the remainder of 2009 are evident, nevertheless pressure continues on room rates as a result of fierce competition."
He said the outlook for 2010 was cautious "as a lot will depend on how soon the world economy can recover thus the return of leisure and business demand for hotel rooms in Dubai".
He added: "The challenge continues to be the entry of new rooms supply estimated at 15 percent in 2010 which will increase the available rooms in Dubai to 54,000. This is a staggering 40 percent additional supply when compared to 2008."
Ansari was one of a key participant members of the region's hospitality industry who were in Dubai on Sunday in advance of the upcoming Arabian Hotel Investment Conference, which takes place on May 1-3 2010.
The meeting comes at a critical time for the MENA region's hospitality sector which has seen a decline in occupancy rates, but has since revealed a promising development pipeline of 468 hotels with 126,464 rooms, according to the August 2009 STR Global Construction Pipeline Report.
