TRAVELLERS OF ALL KINDS ARE DRAWN IN BY THE MILLIONS.
As Knight Frank’s recent research suggests, Abu Dhabi’s hospitality market saw subdued performance in the years leading up to 2013, however, it has since gone from strength to strength, with three consecutive years of RevPAR growth and an impressive 2015 performance.
‘‘Whilst Abu Dhabi has historically been driven by corporate and MICE visitation, leisure tourism has seen a boost over the past few years supported by the development of leisure demand generators [and] this trend is expected to continue as future demand generators […] are completed,” analysed Ali Manzoor, associate partner, Knight Frank.
Manzoor expects that an expanded base should be less susceptible to exterior forces and this is exactly what the sector’s stakeholders are counting on.
Anna Olsson, director of sales and marketing, Emirates Palace, agreed that in order to reduce vulnerability to external factors, it is imperative to remain diverse in the range of offerings as well as in the portfolio of markets targeted.
“The need to diversify serves as a strategic advantage and as a result, we find great value in meeting the needs of our varied guests.
Emirates Palace is part and parcel of the Abu Dhabi experience and was built to be dynamic in this regard.
We are well-versed in hosting everything from important government delegations, the city’s biggest events to creating the most intimate and once-in-a-lifetime experiences for our leisure visitors,” Olsson elaborated.
One of the external forces hoteliers referred to is the declining oil prices which have had an impact on visitation numbers and have softened corporate demand.
Specifically, in February, STR Global reported a 5.5 percent year-on-year decrease in occupancy to 76.3 percent, a 28.5 percent plunge in average daily rates and a 32.5 percent downturn in RevPAR.
Knight Frank analysts forecast this trend to continue, but are optimistic that it will be counterbalanced to some degree by increased interest from leisure tourists.
“The oil price drop has affected all industries, not only hotels, and we have witnessed a similar regression in room bookings as other hotels in the city.
However, there are signs of recovery in term of occupancy, but certainly pressure on rates will continue until the end of [this year],” supported George Demitry, general manager, Royal Rose Abu Dhabi.
Nevertheless, he reminded that the oil crunch only impacted a smaller portion of the business, as the Asian and Far Eastern leisure markets remain steady and are expected to show growing demand due to discounted airline fares and packages, which have made Abu Dhabi more affordable.
Bruno Debray, general manager, Novotel and Adagio Abu Dhabi Al Bustan, commented that indeed there has been a noticeable decline in corporate business which was obviously affected by the current situation in the oil production sector.
“As a result of low production in the corporate segment, the focus is now changing towards the leisure segment,” he underscored.
Confirming the strong focus on vacationing guests, Kamal Fakhoury, chief operating officer, The Cristal Group, commented that given the current circumstances, the company is readily able to step up and increase its leisure market share.
The many developments coming up on Saadiyat Island and those already on offer at Yas Island, plus the new attractions on Al Maryah and Reem Islands, as well as the expansion of Sheikh Zayed Grand Mosque will certainly help boost leisure tourist figures and compensate for the short-term loss of corporate business, Fakhoury underlined.
Janet Abrahams, area director, sales and marketing, Abu Dhabi, Grand Hyatt Abu Dhabi Hotel and Residences Emirates Pearl, remarked that the emirate continues to widen its appeal to vacationers looking for a new destination that combines elegance, culture, authentic experiences and smooth infrastructure at exceptional value.
Abu Dhabi has and continues to develop tourism attractions that provide quality family fun and cultural experiences, she said.
“The opening of Louvre Abu Dhabi is one example of world-class facilities to enhance an already rich offering with the world-famous Formula 1 Yas Marina Circuit, the magnificent Sheikh Zayed Grand Mosque, stunning beaches and diverse island experiences, great infrastructure and a rich cultural heritage making Abu Dhabi a perfect leisure destination,” added Abrahams.
Stephen Gee, development director, Zaya Hospitality, also agreed that the steady investment into new ventures support a general shift towards leisure tourism.
These endeavours are helping Abu Dhabi reinvent its offering, surprise guests with new and exciting projects while opening up a whole new market for cultural tourism, he noted.
