As one of the premium places to travel to in the world, Dubai is a location of grandeur and luxury. Famed for having a world-class hospitality industry, it’s become one of the jewels of the Middle East.
This, though, has led to some worrying issues over recent times, with the COVID-19 outbreak showing that event this immensely strong hospitality industry could begin to struggle in time.
With occupancies down by over a third from February to March for the same period of time last year, the fear is that the COVID-19 outbreak could really hit the industry harder than expected.
Revenue for available rooms has fallen by around 23%, too, with consumer prices for the hospitality sector dropping further. This slump is expected to continue, though, despite one of the most valuable sectors in the business industry.
A Turbulent Time for Dubai and Beyond
With hotel and travel firms in the USA seeking some $250bn to help them survive the downturn, it’s expected that Dubai might have to try and do the same to save one of its most impressive and important industries.
Global occupancy is expected to drop as much as 10%, or more, due to the rise and spread of the pandemic.
It’s hard to know exactly what is going to happen with this, as many people will still travel and take the chance regardless.
However, with many companies such as Standard Chartered dropping their economic growth projection for the UAE by as much as 1.1%, it’s safe to say that this could be a turbulent time for Dubai and beyond.
With many countries feeling the pinch in their most vital industries, some form of stimulus and protection will be needed for businesses that are beginning to feel the economic reality of living as part of a global pandemic.