Investing in hotels

Investing in hotels

Based on materials http://www.thefirstgroup.com

Dubai has attracted more visitors per head of population than any other country in the world this year. The upwards trend is expected to continue into the peak season towards the end of the year, meaning increased profit of investors.
The ratio of visitors per head of population in Dubai is estimated to be 4.8, the highest in the world, exceeding Amsterdam and London. There have been 11.95 million international overnight visitors in Dubai in 2014, ranking the emirate the fifth most visited country among 132 countries. If current growth rates are to continue then Dubai would overtake both Paris and Singapore within five years and become the second most visited country in the world.
Visitor spending in Dubai has increased by 7.5 per cent in the past year, amounting to a total spend of $10 billion in 2014. Overnight visitors per city resident spending amounted $3,863, placing Dubai top among 132 countries.
Dubai hotel rates remained above Dh1,000 a night in October according to statistics published by STR Global.
Supply outpaced demand during the month nevertheless the city was able to maintain the same occupancy levels as the year before. The oversupply was due to construction of new hotels as the emirate is getting ready for hosting World Expo 2020 and meeting Vision for Tourism 2020 target of attracting 20 million tourists annually in 2020.