More mid-market hotels planned in Dubai to cater for visitors from emerging source markets

Posted: 18-Jul-16 09:00

Dubai is renowned for its ultra-luxurious hotels and accommodation, and it boasts some of the world's most lavish and iconic hotels and architecture. After recently setting a target for 20 million visitors by 2020, the emirate is now focusing on creating more mid-market hotels to attract travellers from emerging source markets such as China, Brazil, Africa and India.

More mid-market hotels planned in Dubai to cater for visitors from emerging source markets

Famous for its iconic soaring architecture and lavish hotels, Dubai prides itself as one of the most luxurious destinations in the world. In a bid to attract more travellers from emerging source markets, the emirate is now concentrating on mid-market hotels.

Dubai has set a target of 20 million visitors by 2020, and while it’s busy organising the Dubai Expo 2020 and the construction of new mega theme parks, the government is keen to focus on mid-market hospitality sector for emerging countries like China, Africa, India and Brazil.

Issam Kazim, the CEO of Dubai Corporation for Tourism and Commerce Marketing declared:

"The newly affluent mid-class segment in developing countries such as China, Africa, Brazil and India has sparked the development of more mid-market options in Dubai. A recent study by PwC shows that young travellers from Asia and Africa, even those who can afford luxury, are opting to stay in affordable hotels as they tend to value experiences over five-star accommodations.”

Millennial travellers make up 20 per cent of international travellers, and their needs differ from many high end travellers. Rather than upscale facilities like butler service and exclusive lounges, millennial travellers seek mid-market hotels with excellent internet connection, comfortable beds, good restaurants, and spaces to socialise with other travellers. More young families from developing countries such as India and India are showing an interest in Dubai as a travel destination, with many looking for mid-market, affordable accommodation.

This has led to an increase in mid-market hotel chains expanding into Dubai or showing an interest in entering the market. Rove Hotels is one of these companies that has already invested in mid-market options, and by 2020, the hotel group will have ten properties in the Dubai City, with more than 2,600 guest rooms. Mid-market hotel brands that have expressed an interest in or are currently constructing properties in the Middle East include Hilton Garden Inn, Park Inn by Radisson, Hampton by Hilton and Holiday Inn.

The introduction of mid-market hotels in Dubai does not pose a threat to the upscale and five-star hotels and resorts in the emirate, but instead it provides another option for those tourists who are looking for more affordable options. If more mid-scale and budget hotels are available to international business and leisure travellers, there’s a stronger chance that Dubai will meet its target of 20 million visitors within the next four years and continues to be one of the most thriving and expanding tourism industry in the world.

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