Damac expects robust occupancy charges at its resorts because it seeks to spice up UAE portfolio

Damac Resorts and Resorts, the hospitality arm of Damac Properties, goals to broaden its portfolio within the UAE and is alternatives overseas because it expects “robust” occupancy charges at its properties this yr.

The corporate will open a brand new resort in Dubai on the finish of the yr in partnership with Rotana group and one other resort at Damac’s Aykon Metropolis, Damac’s senior vp of hospitality Jean Faivre instructed The Nationwide in an interview.

“By way of enlargement, we’re at all times very eager to have a look at new alternatives. We’re opening Navitas Rotana on the finish of the yr, and starting of subsequent yr, we’re opening Aykon Metropolis on Sheikh Zayed Street,” Mr Faivre mentioned.

Outdoors the UAE, “we now have a lot of alternatives we’re , that I wish to maintain the thriller for now as a result of it is nonetheless beneath finalisation”.

In Dubai, Damac’s hospitality unit at the moment operates seven properties together with Paramount Midtown, Damac Tower by Paramount Resort Dubai, Radisson Resort Dubai Damac Hills, Damac Maison Cour Jardin, Damac Maison Distinction, Damac Maison Mall Road and Damac Maison Canal Views.

Its portfolio contains greater than 5,000 rooms, and 300 extra shall be added after the Navitas Rotana is opened later this yr.

Dubai’s tourism sector has rebounded strongly from the affect of the coronavirus pandemic on the again of presidency initiatives in addition to the profitable internet hosting of Expo 2020 Dubai and different occasions this yr.

The emirate hosted 7.12 million worldwide guests within the first half of 2022, about thrice the two.52 million vacationers recorded in the identical interval final yr, based on official knowledge.

Throughout the broader UAE, the tourism sector’s income exceeded Dh19 billion ($5.17bn) in the course of the first half of this yr and the overall variety of resort friends in the course of the interval reached 12 million — a rise of 42 per cent, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, mentioned this week.

The UAE, the Arab world’s second-largest financial system, expects a “robust tourism restoration” this winter, he mentioned.

“Our indicators as we speak are stronger than our indicators earlier than the pandemic, and our financial development is quicker than earlier than the pandemic, and our tourism, business and growth sectors are bigger than earlier than the pandemic,” Sheikh Mohammed mentioned on Twitter.

Damac’s senior vice president of hospitality Jean Faivre is bullish about the growth of the hospitality sector in Dubai. Photo: Damac

Damac recorded greater than 70 per cent occupancy ranges at its resorts in Dubai within the first eight months of the yr, up 20 per cent in contrast with final yr, Mr Faivre mentioned.

It expects to shut the yr at 75 per cent to 78 per cent occupancy ranges amid an inflow of recent vacationers to the emirate, he mentioned.

The restoration momentum is anticipated to proceed on the again of recent visa guidelines and the chance of extra soccer followers arriving in Dubai from neighbouring Qatar because the Gulf nation hosts the FIFA World Cup in November.

“We’re confirming what Sheikh Mohammed has been saying, that [it] is a particularly robust market,” Mr Faivre mentioned.

“We’re having a really robust ‘vigorous gearing up’ to host the soccer followers … we now have two months to go and with all of the exercise which is going down in Dubai to host the followers, we’re definitely very robust occupancy and income not solely when it comes to resort occupancy, but additionally when it comes to meals and beverage and all different income. So we’re very constructive for the steadiness of the yr.”

The UAE’s new visa guidelines, which permit guests and holidaymakers to enter and keep for 60 days within the UAE as a substitute of 30 days beforehand, may even have a constructive affect on boosting occupancy ranges, Mr Faivre mentioned.

Damac’s resorts have been receiving friends from GCC nations, the UK in addition to Israel. A number of home travellers have additionally checked into its properties in step with the staycation pattern that picked up tempo in the course of the pandemic.

“We’re having a variety of prospects and guests from Israel … very robust demand from there and likewise native home demand and [from the] GCC with the change and the drop of boundaries [related to Covid-19],” Mr Faivre added.

Up to date: September 19, 2022, 3:30 AM


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