Dubai Expo 2020 expected to be a ‘Strong Catalyst’ in the recovery of the UAE’s hospitality sector

The Dubai Expo 2020 is expected to be a ‘strong catalyst’ in the recovery of the country’s hospitality industry, according to leading industry experts. Hospitality specialists, Colliers, is forecasting that occupancies across the main sub-markets of Dubai will range between 64 percent to 73 percent for the full year 2021 while the latest reports published by consultants KPMG, highlight that “Half of hotel owners and operators in Dubai expect occupancy levels to rise above 60 percent this year, while three-quarters expect numbers to return to pre-Covid levels by 2023”.

With just over a month to go until the global showcase event opens to the public, hotels are already witnessing an increase in bookings – suites at Rove Expo 2020 are nearly sold out after bookings for the event’s only on-site hotel opened less than a month ago, according to Paul Bridger, chief operating officer at Rove Hotels. The Rove Expo property is centrally located at one of the event’s main attractions, Al Wasl Plaza, featuring 312 king, twin and accessible rooms, and 19 suites. This is the first Rove property to feature suites and they are in high demand and currently the best selling rooms.

While the six-month international event, which is forecasting 25 million visits over the period, will provide a massive shot-in-the-arm for the aforementioned corporate and MICE segments of the industry – arguably the two hit hardest by coronavirus-related restrictions – Lund believed there was also potential for the leisure market to benefit, particularly with the Covid vaccine rollout in key markets and the subsequent return of international travellers.

Many hotel owners and operators have hand to change strategy as the recovery phase is been driven by a rebound in domestic tourism. As we move into the cooler winter months and the highly anticipated peak season, operators have been pinning their hopes towards Q3 and Q4 and Expo will further accelerate the recovery. It is expected that with vaccines rolling out across the globe, people will be eager to travel again, and Expo will be a fantastic opportunity to discover both the UAE and also attend of one of the biggest global events.

It is expected that that business or MICE travellers will visit Dubai be in large volumes for the Expo, whether for related meetings or events. The luxury segment is expected to see an increase in demand,  from VIP delegates/delegations and also a substantial portion of demand for medium to long stay bookings especially among serviced apartment properties for delegates who will be working at the Expo for an extended period of time. However, Dubai is a  considerably large hospitality market with almost 130,000 hotel rooms available, and it is not expected that occupancy rates will remain high for the entire 6 month period of the Expo event, considering that it is currently relatively stable around 60 per cent.

 “Currently Dubai is in low season however, reported booking levels have shown strong signs of recovery for the upcoming main touristic season. Expo is certainly a strong catalyst for recovery, especially for the corporate and MICE segments” advised Christopher Lund, Head of Hospitality at Colliers (Middle East and North Africa). Although it is expected that there will be a pick-up in market performance as a result of the Expo, it is also considered market recovery is a long path that will take longer than Expo.

Expo 2020 Dubai, delayed from last year as a result of the global coronavirus pandemic, will run over a period of 182-days from the 1st of October 2021 through to the 31st March 2022. As the first-ever Expo to be hosted in the Middle East, the event will be the largest global gathering held during the coronavirus pandemic after this year’s Tokyo Olympics was operated as a closed event without supporters and visitors.  Each participating nation will have its own pavilion at the expo, with 50,000 employees so far setting up around 192 pavilions representing nations, organisations, businesses and education establishments. Attendance is expected to peak especially around specific dates such as New Year’s Eve or when special events happen.

The UAE has been acknowledged worldwide for the way in which the country has tackled the pandemic. Indeed, Dubai has kept its doors open to the international community since July last year, under stringent health and safety guidelines to guard against the spread of Covid-19. The country’s vaccine rollout is also one of the best in the world. As of the 1st of September over 18 million vaccine doses have been administered. With over 86% of the population receiving at least one dose and over 76% of the population is fully vaccinated.

Dubai will be required to strike a careful balance between attracting high numbers of visitors while maintaining a perception of high safety for all visitors and Expo employees. The Expo would be the perfect stage to demonstrate to the world exactly how tourism and public events can resume in a safe environment.