UAE hospitality industry in fine fettle

Leading global hotel brands are now focusing their attention towards the UAE, as they consider it to be a lucrative investment destination. Owing to the elevating tourist presence in the region, the UAE hotel industry has rebound once again. The noticeable step in this regard is the announcement during the week of long anticipated details about the Canada-based global luxury hotel chain Four Seasons Hotels & Resorts, that has now penetrated the UAE market with the establishment of their first hotel, expected to be operational in mid-2014. The news was coupled with the signing of a contract between Kathleen Taylor, president and CEO, Four Seasons Hotels and Resorts and Talha Al Hashimi, CEO, Bright Start as the developer of the hotel. About 10 per cent of construction has already been completed of the five-star resort located off the Beach Road in Jumeirah on the site of the former Jumeirah Beach Club. The property which is expected to be operational in mid-2014 is being developed by Dubai-based company, Bright Start which has interests in real estate and investments. Four Seasons already operates ten hotels in the Middle East and has several others in the pipeline, including in Abu Dhabi, Jeddah, Bahrain, Kuwait and a second property in Doha. The Middle East and Africa contributes about 25 per cent of the chain’s global revenue. The hotel industry in the region continues to perform extremely well with a large influx of tourists visiting the destination. Four Seasons Hotels & Resorts positioned in the ultra-luxury segment of the market, had earlier plans of setting up its establishment at Festival City’s Al Badia Golf Club complex, but was called off by developer Al-Futtaim Group Real Estate in June 2009 due to the global economic downturn. Since then the hotelier has been exploring for an appropriate location to set up its business. Speaking to journalists at the sideline of the announcement, Taylor said that she sees Dubai as a vibrant market for the hotel industry, adding that the UAE is now considered as the global hub in such investments. She added that Four Seasons Hotels and Resorts is proud of its presence in Dubai, saying that the hotel always had an interest to invest in the UAE. Taylor also disclosed that Four Seasons which was established in 1960, currently has 86 properties in 35 countries globally, and over 50 projects that are under development. She added that Four Seasons continues to lead the hospitality industry with innovative enhancements, making business travel easier and leisure travel more rewarding. Eight hotels have been planned for this year that includes three in China. When completed the Dubai project will accommodate 237 rooms including 49 suites, a 270 metres of beachfront, three restaurants, function spaces, a spa, indoor and outdoor pools, tennis courts and a private beach club. According to STR Global’s February report, Dubai has 26,643 rooms in the development pipeline. Dubai hotels received 7.26 million guests in 2011, up from 6.56 million in 2010, and the emirate’s tourism sector recorded a 20 per cent jump in revenues to Dh16 billion last year owing to factors such as the Arab Spring and the opening of new properties. Other statistics indicate that the regional outlook for the Middle East and Africa is equally bright, with visitor numbers for the top ten cities set to grow by 7.2 per cent, total international spending predicted to rise by 10.4 per cent and average spend per visit set to grow by three percent. The number of foreign tourists heading to the UAE alone this year is expected to reach almost 9 million, according to the latest industry forecast issued by international industry consultant Business Monitor International (BMI). The BMI report forecasts that overseas arrivals in the UAE during 2012 will climb to 9 million, a healthy 9 per cent increase on the 8.2 million tourists that arrived in the UAE last year. From gulftoday