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Mazaya Monthly Real Estate Report -
Week 2 - December 2015
The tourism sector in the UAE is one of
the most important sources of GDP for
the country – its contribution currently
amounting to over 8.5 per cent. In fact,
the UAE currently enjoys being ranked
among the most favoured world tourism
destinations, with more projects and
leisure destinations continuing to
come online. This is largely due to the
advanced
infrastructure,
financing,
economic activities and events being
held in the UAE, throughout the year.
Al Mazaya’s Report recognises that
tourism investments in the country
reached AED 105 billion, by the end
of 2014. The volume of investments
in the construction of international
leisure facilities, luxury and medium
hotel sectors, along with other
supporting and attractive tourism
services, is projected to rise even
further in the coming year. At this
level of investment, the UAE currently
attracts the highest percentage of
investment for tourism development,
in the whole of the Middle East.
The World Travel and Tourism Council
currently ranks the UAE ninth in terms
of tourism investment. This comes in
light of a clear tourism strategy laid
down and followed up at both federal
and individual emirate levels. Al
Mazaya’s Report also stresses that the
introduction of more medium and small
size hotels into the market, coupled
with an advanced and growing aviation
sector, has provided greater flexibility for
presenting tourism plans and strategies
at lower rates, at all times of the year.
It is noteworthy here that medium cost
tourism, led by low-cost and medium
priced hotels and airline fares, has
helped to reduce average prices by up
to 30 per cent recently. This means that
low cost options will enable additional
tourism segments to be among the
growing options for visitors to the UAE.
This argument is supported by the large
number of international hotels that
have begun to expand their operations
by opening a series of low-cost hotels,
across the country. According to Al
Mazaya’s Report, these trends remain
proportionate to any worldwide decline
in financial and economic indicators.