Dubai Hotel Tariffs Are Almost Double Than That Of Abu Dhabi And Here’s Why!

by Ishita Agarwal
Dubai Hotel Tariffs Are Almost Double Than That Of Abu Dhabi And Here’s Why!

There are currently no indications that Dubai status as the region’s tourist powerhouse will change. According to a JLL analysis using STR data, up until May of this year, Dubai hotel prices were almost twice as high as those in Abu Dhabi. Occupancy rates in Dubai and Abu Dhabi were 75% and 71%, respectively, despite a recent increase in visitors visiting the UAE. 

Why Is There An Increase In The Hotel Tariffs?

A crucial indicator of hotel performance, revenue per available room (RevPar), almost doubled to $160 over the same period. Therefore, that the average daily rate (ADR) increased to $213. According to JLL, the occupancy rate in the capital increased by 10 percentage points yearly from January to May to reach 71%. ADR rose 27% year over year to $112, while RevPar doubled to $79 in the first five months of 2022.

According to the emirate’s Department of Economy and Tourism (DET), Dubai had 6.17 million foreign tourists from January to May. However, which represents a threefold increase over the same period in 2017. The DET said the rise in tourists is due to government efforts that helped the tourism sector recover from the epidemic and Expo 2020 Dubai.



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Evolving The Offers in Hotels Of Abu Dhabi and Dubai 

Although no new inventory was added in Abu Dhabi during the second quarter, 700 keys anticipate being delivered by the end of 2022. As the industry develops, hotel operators must remain competitive by moving away from old methods. To draw in more customers, traditional operators may develop to offer a wide range of food and beverage options.

This becomes important, particularly in light of controlling the overall effects of inflation. Moreover, the increasing value of the UAE dirham on tourists’ purchasing power. The secret will be using a balanced strategy to meet revenue goals.

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