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Over 25 million visitors are predicted to visit Dubai after the emirate won the bid to host the Expo 2020. This is good news for the hospitality sector.
Dubai experienced double-digit growth in tourism last year when it received approximately 11.95 million overnight visitors. With its booming property market and hotels reporting high occupancy rates, the next logical step for any investor is to put his money in the hospitality sector and reap the high returns.
According to experts from a global banking group based in Dubai, property investors in the emirate are now putting their money into hotels and serviced apartments in parallel to the recent surge in tourist numbers.
Dubai also has a lot to offer tourists in terms of retail and leisure activities. With mega projects in the pipeline, including the world’s biggest mall, Mall of the World, and the theme park Bluewaters Island which will host the world’s largest Ferris wheel, Dubai is set to attract even more tourists.
Furthermore, the Dubai International Airport is now considered one of the busiest airports in the world in terms of number of passengers. This scenario has further pushed the demand for additional hotels.
Another key factor is that the Department of Tourism and Commerce Marketing (DTCM) has officially legalised the short-term rental industry, allowing property owners with a licence to rent out their unit as a holiday home. This is another feather in the cap of the tourism and hospitality sector.
The concept of serviced apartments has also taken off in a big way, offering travellers an alternative to hotels at affordable rates.
All these developments in the hospitality industry are reason enough for any keen investor to invest in the Dubai hospitality market.
• Dubai witnessed a double-digit growth in tourism last year
• Its rising tourist numbers a boon for hospitality sector investors
• Emirate also has a lot to offer tourists in terms of retail, leisure
Source: Saadiya Ahmad, Special to Properties
The writer is a freelancer