UAE overtakes recovery in global travel market: CBRE

The UAE has passed the timid recovery in the global travel market, leading commercial and investment real estate services company CBRE said in its latest UAE hospitality market review.

Globally, partly due to seasonality and more recently due to the reinstatement of lockdowns in recent weeks, there was a resumption of the pick-up in slow flight numbers in November 2021.

In October, the number of daily flights for the month reached an average of nearly 95,000, as of November 21, it has fallen to about 90,500. From the beginning of the year until November 21, for compared to the same period in 2019, the average number of daily flights is 28.8% lower. While this is a marked improvement from 2020, when the average number of daily flights was 42.2% lower than the 2019 comparative figure, it is clear that the global travel recovery still has some way to go. Browse.

In contrast, Dubai International Airport has experienced a sustained recovery in recent months. From the beginning of the month to November 21 compared to the same period a year earlier, the percentage increase in the average number of daily flights to Dubai is almost three times the increase of 33.7% seen in the world. While the total number of flights and passengers in Dubai is still at a level below pre-pandemic levels, Dubai International Airport is expected to return to full operational capacity in the coming weeks and return to levels of before the pandemic within a year.

In October 2021, with the start of EXPO 2020 and increasing levels of international visits, we saw a significant increase in KPIs in the UAE. The average occupancy rate in the UAE in October was 78.8%, the highest level recorded in October since October 2015. In October 2021, Dubai recorded the highest occupancy rate by 80.7%. From the start of the year until October 2021, Ajman recorded an occupancy rate of 77.9%, the highest of any emirates.

On a year-over-year basis through October 2021, Dubai, Fujairah and Ajman recorded ADR increases of 14.9%, 13.8% and 3.9% respectively, overall the United Arab Emirates saw their ADR increase by 13.6%. During this period, Abu Dhabi and Sharjah were the only markets to see ADRs drop, with rates falling 1.5% and 0.5% respectively.

RevPAR in the United Arab Emirates increased 44.9% year-on-year from the start of the year through October 2021. During this period Dubai, Ajman and Sharjah saw their respective RevPAR increases by 57.1 %, 51.0% and 37.3%. Abu Dhabi’s RevPAR rose 5.9% more moderately, which is not surprising given Abu Dhabi’s longer-lasting pandemic restrictions.

Taimur Khan, Head of Research – MENA at CBRE in Dubai, said: “With increasing international footfall, an increasing number of locations around the world going into lockdown and a number of events planned at EXPO 2020, we envision both international and domestic leisure tourism, combined with the return of business tourism, will continue to support strong levels of performance across the UAE. “- TradeArabia News Service

About Tammy N. McFarlane

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