Dubai hotels full again thanks to deep discounting

Dubai’s famous beachfront hotels are full again but have resorted to deep discounting to lure their clients back.

This week the Dubai International Boat Show has put the icing on the cake and hotels like the Harbour Tower, Tamani and Le Royal Meridien are at 100 per cent occupancy.

Rates are far lower than before the global economic crisis struck the emirate last September. A serviced, five-star, two-bedroom apartment in the Harbour Tower is available from $168 per night, with views from the 52nd Observatory for free and access to the Royal Meridien beach.

High occupancy

The lights blazing up and down the Tamani Hotel also confirm its claim to 100 per cent occupancy on 11 days during the first two months of the year.

However, in the downtown area the city hotels are struggling with substantially lower occupancy rates than last year, despite some serious discounting. But the city’s glamorous hospitality sector is fighting back and becoming cost competitive again after suffering from the renewed strength of the US dollar which is converted at a fixed rate into the UAE dirham.

Last night in the 52nd floor Observatory a glass of wine could be bought for $4.40, a far cry from the $19 charged for a glass of chardonnay at the Madinat Jumeirah last autumn.

Beware extras

All the same, bargain hunters should beware. Emirates Airline is offering $700 packages in London for the new Atlantis Hotel on Palm Island. But food, beverage and attraction charges are still sky high, complain guests.

Over the past decade Dubai has expanded its hospitality sector by massive investment in some of the world’s finest and newest five-star hotels, both on the Jumeirah beach front and in the downtown district. There has also been a huge investment in Emirates Airline and the superb Dubai International Airport.

Indeed, the timing of this expansion means the newest arrivals, such as the superb new Terminal Three, have been delivered just in time for the biggest slump in global travel in history. Clearly Dubai’s hoteliers now face a considerable challenge in keeping revenues flowing while profits should follow later if visitors enjoy themselves and do not feel ripped off.