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BANKO Information Service found out, that the Association of Dubai In-country Companies, working on the Russian market, intends to insist on price reduction by the UAE hotels. The decision was motivated by drop in demand for this destination. It is evident that some hotels are on sale for tour operators at rack rates. ‘It was especially clear during the New Year period when prices for some hotels were 200% more expensive than a year ago. Consequently, Dubai is converting into a resort for the rich only. Hope, hotels in the Emirates can evaluate the tendency. By the way we received a letter from our partner company in Dubai, in which they suggest that we should state our claims towards hotels’ policy in a written form’, explained the Head of the UAE Department of Russian Express travel company, Andrey Zorin.
Although Dubai hoteliers insist that their hotels are 100% booked, according to local companies, a realistic figure is only 50%.
It may result in traffic reorientation from Dubai to other emirates, for example, to currently popular Sharjah. The Association plans to prevent this tendency.
Basically, some experts believe that the campaign is not going to be a success. Tatiana Vand, Director of Vand International Tours, stated: ‘I think the Association will not resolve the problem. As long as there is a shortage of hotels in Dubai, prices will not decline. The situation will improve only when a number of Dubai hotels doubles’.
Apropos the increase of hotel number is among the plans of Dubai, where 1000-1500 hotel rooms are expected this year and in 2006–2007 new hotels on the palm islands will be put in commission. Therefore, by 2010 Dubai intends to increase the number of tourists at 15 million people per year.
