(MENAFN- Khaleej Times) The encouraging performance of Dubai's hospitality sector is a strong indicator of the economy making inroads in its 'traditional' growth sectors.
A recent market survey reports that the revenue per available room (RevPAR) at Dubai's hotels has increased by 9.6 per cent in May, backed by a growth in the average room rate by 6.5 per cent. This has also contributed to the growth in gross operating profit per available room by 12.4 per cent.
Despite the advent of summer, Dubai's hotels are recording impressive occupancy, led by strong tourist arrivals from the GCC region. The ability of the city to drive visitors from across the region also owes to the concerted initiatives that Dubai has taken in the events and retail sector.
Dubai Summer Surprises, for example, continues to play a key role in revitalising the retail and hospitality sector during the summer months. The festival calendar of the city receives continuity with 'Ramadan in Dubai' and 'Eid in Dubai,' giving visitors to the city enough reason for a delightful and value-added holiday.
Dubai's growth story has strong inter-linkages with the tourism sector. The two-pronged approach of developing the aviation and hospitality infrastructure have yielded tangible results, contributing to robust tourist arrivals, which in turn energises other allied sectors such as retail and car rentals.
The global financial crisis was a dampener for the global hospitality trade. People cut down on travels, even corporates looked for cheaper alternatives. That Dubai did not stall its hospitality infrastructure development in response to the temporary setback speaks volumes about the importance of long-term planning.
Today, even as traditional tourist destinations are struggling to find the right numbers to prime their economies, Dubai has made strong headways in tourism growth.
The recent announcement to house a 300-room luxury hotel inside the majestic Queen Elizabeth 2 is another example of how Dubai has successfully maneuvered the challenges of the crisis through positive policy decisions. The hotel is expected to appeal to a niche segment among tourists - the cruise travellers.
According to reports, in April alone five cruise ships docked at the Dubai Cruise Terminals, bringing more than 19,000 tourists to the city, the largest number of visitors at the Port Rashid facility on a single day. Cruise tourism is one of the fast-growing sectors globally, and Dubai's location provides it a geographic advantage.
It is in this context that the decision to develop QE2 as a luxury hotel must be perceived, rather than portraying it as a scaling back from original plans. The success of any business model depends on its ability to be flexible and its ability to align with market realities.
Dubai has demonstrated its strengths in driving the growth of tourism and hospitality, sectors that are crucial for overall development. The spirit of welcome that Dubai extends to its visitors, thus, has a wider positive effect.
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