Dubai’s commercial real estate market could be set for a major boost after the government laid out plans to increase the city’s accommodation space.
According to businessmirror.com.ph, tourism officials are hoping to double the number of hotel rooms in Dubai by the end of the decade as they look to keep up with demand and further increase growth.
Dubai’s director general of tourism and commerce marketing, Helal Saeed Almarri, says the government will look to increase its annual visitor count to 20 million by 2020, the year in which the World Expo event is set to take place in the city.
Mr Almarri was quoted by khaleejtimes.com as saying: “None of these rooms are being built specifically for the Expo or any one event. They’re being built purely because of the core tourism numbers. Dubai won’t turn into a ghost town after the Expo.”
He also believes that developers will need to avoid focusing solely on luxury accommodation if the goal is to be met, adding: “In 2020, five-star hotels rooms will still be the majority, but we’d need the three and four-star category.”
The government has suggested that investors could see certain development fees waived if they decide to build cheaper hotels. Of the emirate’s 86,000 accommodation units, around 30 per cent are currently in luxury hotels.
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