Dubai hotels drop in revenue

Hotels in Dubai have recorded a first-quarter decline after being hit hard by a fall in demand and heavy discounting to boost occupancy rates, according to preliminary figures from the Department of Tourism and Commerce Marketing (DTCM).

Analysts have warned there could be an even sharper decrease over summer, predicting occupancy could fall below 50 per cent.

Dubai hotels and hotel apartments had a 14 per cent fall in revenues in the first quarter of this year compared with the same quarter last year, the DTCM figures show.
Revenues fell to Dh3.66 billion (US$997 million) in the first three months of this year from Dh4.26bn in the first quarter of last year.