Local demand for staycation holidays is expected to improve hotel occupancy rates in the UAE to about 100% (or up to 95% for resorts). As a result, the hospitality industry's revenue will rise.
Hoteliers have reported a 30% increase in room rates due to high demand, with an additional 40% increase planned for the foreseeable future to keep up with the trend.
The Islamic holiday vacation officially begins on Thursday, April 20. Residents will have four or five days off depending on when the Moon is spotted.
Resorts now have an occupancy rate of over 90 percent, according to Haitham Mattar, general director of IHG Hotels & Resorts in India, the Middle East, and Africa, whereas urban and city properties have an occupancy rate of approximately 65 percent. According to him, staycation demand would push hotel occupancy rates to 95% at resorts and 80%+ in urban and city areas.
Ayman Ashor, General Manager of Al Bandar Rotana, indicated that the hotel had a solid occupancy rate during Eid, and he believes that this number would rise over the next week as additional tourists make their travel plans.
Since hotels are typically busier during the holiday season, it is possible that occupancy levels on Eid will be higher than 100%. According to Ashor, the people who have made reservations for Eid this year include both residents who will be remaining in their homes and guests who will be arriving from other parts of the country.
According to Witty D'silva, Leva Hotels' Corporate Director of Sales and Marketing, occupancy rates for Eid are looking encouraging, suggesting a progressive increase.
Pre-bookings for the Eid holiday have shown an occupancy rate of 75%. The Gulf Cooperation Council region has always been a last-minute booker for vacations in the United Arab Emirates. He continued, "Therefore, reservations and bookings rise up as the holiday periods approach, and there is also an increase in walk-ins.
D'silva predicted that bookings for Eid will approach 100% based on the information available at this time.
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Room rates set to rise further
During the Eid al Fitr holidays, prices will go up marginally, says CEO D'silva.
As a result of inflation's effect on the global economy, vacationers are now more cost-conscious than ever before. As a result, people are looking for more budget-friendly lodging options. Before deciding on a hotel to stay at, consumers carefully compare rates, discounts, and the hotels' offerings to the facilities they require. Because of this, hotels have had to lower their prices in order to compete for guests during the Eid holiday, as noted by D'silva.
Hotel prices have increased by 30%, according to Haitham Hattar, who predicts a further 40% increase in the days leading up to Eid.
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Ayman Ashor reported a modest increase in accommodation rates during Ramadan due to increased demand, and predicted that this trend could continue in the week leading up to Eid Al Fitr.
