Against the background of the financial crisis in the UAE, hotels in Dubai and local tour agencies are trying to prevent a sharp drop in demand for their services and maintain hotel occupancy in 2010 at the same level. Tour operators, as well as some hotel chains, for example the largest UK hotel chain Premier Inn, announced a cut in prices for their services by 40% in the nearest future.
According to the publication Emirates Business, in 2010 a massive inrush of tourists from China and India is expected in the UAE. Price abatement is primarily aimed on stimulating further interest in recreation in Dubai by tourists from these countries.
In October 2009 the biggest drop in yield from hotel rooms throughout the Middle East region was noted in Dubai. Hotel room yield fell on average by 35%, - Emirates Business reported.
Many well-known tour operators, including British travel giant Thomas Cook, have already noted reduced prices for hotels in Dubai. According to some reports it was around 7%. According to analysts, decline in prices will continue.
Regarding hotel chains - according to the representative of Premier Inn, the company decided to reduce prices in order to bring even more attention to their hotels due to favorable prices. Forecast for 2010, which promises an inrush of tourists from China and India, gives rise to Premier Inn hotels to expect an increase of occupancy. Most Chinese and Indian tourists prefer budget options for vacation. Premier Inn hotel chain works exactly in this niche. Against the background of decreased demand for business 4 * class hotels in Dubai and luxurious five- star hotels, the prospects for development of Premier Inn look well-defined, and an announcement of decrease in price by 40% should add extra attention to the hotel services.