GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Government Legal Humanity

 
  Share

Investment opportunities are supported by ongoing government efforts to expand non-hydrocarbon industries and the private sector's involvement, according to a KPMG-INHOCO study 

Dubai, United Arab Emirates, 06 June 2018:  Investment in Dubai's hospitality industry is expected to grow well beyond the next two years, although margins are gradually converging with global norms, according to a joint report by KPMG and International Hospitality Consulting Group INHOCO entitled “Accommodating the Future: the Dubai hospitality sector beyond 2020”.

The emergence of an array of spectacular attractions and cutting-edge infrastructure ensure there is something in Dubai for everyone. The emirate has also been investing heavily in different themed adventure parks, which aim to be a major attraction, especially as there are currently no significant theme park destinations between Singapore and Paris.

Furthermore, the local government has also supported the growth of health tourism by launching initiatives such as the Dubai Portal for Health Tourism (DXH) website. The latter now allows tourists to travel to the UAE for their medical needs and choose from a wide range of specialties and services. Increasingly, investors are looking into the sector, with a mixture of joint ventures and home-developed expertise attracting regional and global custom.

“All signs point towards a maturing hospitality sector, yet there is potential for further growth. To maximize growth, both owners and operators need to address challenges, such as the rise of third-party agencies, technological disruption, changes in the regulatory environment, pricing and costs. Investors will also need to focus their efforts on creating synergies and planning for the long term,” says Sidharth Mehta, Partner and Head of Building Construction and Real Estate at KPMG Lower Gulf.

While Dubai's hospitality industry has witnessed startling growth over the last few decades, operators have systematically faced two main hurdles: manpower and operating costs.

With a total of 100,000 hotel rooms expected in Dubai by 2020 (from the current count of around 83,000), significant employment growth may be projected for the sector, considering Dubai's current hospitality industry where the ratio of staff to rooms is estimated at roughly one member of staff to one room. Besides the employment growth figures, management capabilities would also require a boost – globally in the hospitality sector, roughly one third of staff are managers. This implies recruitment and training potential beyond 2020. Cost structures could evolve as a result, and owners and operators will need to keep a close eye on spend and profitability.
Meanwhile, the changing technological landscape may bring new challenges for the hospitality sector, yet leveraging new technologies and turning them into opportunities may result in greater cost efficiency and improved customer loyalty for hospitality operators. Consumers expect greater personalization which in turn requires hotels to harvest increasing amounts of data – hotels must also take greater precautions to ensure that data is adequately protected so as to retain customer trust.
From the owners' perspective, some of their main concerns include industry consolidation, price increases, volatile customer loyalty, a changing regulatory environment, and an ever increasing plethora of investment choices. 

Meanwhile, for investors, a major opportunity seems to present itself. Traditionally, hotel operators would house their staff in residences within walking distance of their property, but with land becoming increasingly expensive, this may now be less economically viable. There could thus be a sound business case for building dedicated, secure residences for hotel staff.



Posted by : GoDubai Editorial Team
Viewed 4758 times
Posted on : Wednesday, June 6, 2018  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : DWTC events drive AED 12.7bn in economic value for Dubai, fuelling record 3.3% contribution to emira...
Next Story : Greek Prime Minister praises UAE's global maritime feats during visit to DMCA pavilion at ‘Posidonia...
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
NARS Erdem SS19 Beauty Report
Diana Arno Expands Online Shopping to Middle East
Introducing VK Beauty Lounge & Bar
Introducing Home Fragrance at Robinsons, Dubai Festival City
Defying Age With Skin Republic's Gold and Platinum Face Masks
The Future Is Here
Roberto Cavalli's Exclusive Duo of Fragrances
Bring a Touch of Sophistication to Your Home with The Exclusive SmegXDolce&Gabba...
Lacoste.12.12 Collection
Trevor Sorbie Range Relaunches in the UAE
FOREO To Attend TFWA: the World's Largest Travel Retail Show
Carl F. Bucherer Celebrates Debut of Its Online Boutique on Jd.Com Launch of Lim...
GROHE Smart Home: The App-Controlled Water Security System
Le Meridien Dubai Hotel & Conference Centre's Restaurant Promotions- October
Honda voted “Preferred Sedan Car Brand of the Year” for the fourth year in a row
William Collection by Hugo Boss
Al-Futtaim ACE launches its stylish new Outdoor collection
Al-Futtaim Toyota swoops another win at the Filipino Times Awards
Pamper yourself at Perfumery & Co this month, at The Dubai Mall
Dubai Design Week continues to grow, cementing Dubai as the design capital of t...
Mousses Etoiles to reveal the latest luxury designs of commercial-use outdoor fu...
Tips & Toes Hits the Big 3-5!
O Boticário Opens in Dubai its First Amphora Store outside Brazil Come Join...
Tata Communications launches a specialised cyber security lab at Shanmugha Arts,...
Honor Set to Go Beyond Limits With the Launch of Honor 8x
Consonni Wraps Up La Vuelta a Espana With a Seventh Place Finish for UAE Team Em...
The Mummies of Dubai Give Their Kids a Preppy Style Makeover
Hyperloop Transportation Technologies, Partners, and Government Stakeholders Mov...
Akamai Unveils Solutions at IBC 2018 Designed to Mitigate the Challenges and Cos...
Abu Dhabi wins bid to host 2022 ITU Grand Final in world first
Cadillac XT4 Delivers Dynamic Driving Experience
du Opens New Business Centre in DIFC for Enterprise Customers
Eberhard & Co. Scafograf 100 For Elegant Lady
Ministry of Human Resources and Emiratisation, Huawei and Honor launch ICT Compe...
Dubai Parks and Resorts Celebrates Saudi National Day
New GUESS Handbags for FW18
du Wins Smart Cities Award at the Telecoms World Middle East 2018
Volunteers from the UAE join hands with the community in Tasset Peulh village in...
Sharjah's Recognition as ‘Accessible City for Physically Disabled' Hailed as His...
New Homologations for Pirelli Tyres
Huawei Deepens Cooperation with Duisburg to Transform Germany's Industrial Hear...
The Dubai Business Women Council meets with the UN Assistant Secretary-General t...
Dubai Festival City Mall Celebrates KSA National Day with Special Imagine Show
Registration for the 5th edition of Camel Trek is now open
WWE® Crown Jewel Set for November 2 in Saudi Arabia
New Headmaster for Repton School, Abu Dhabi School's Rose Campus (FS1 to Year 1...
Huawei becomes one of the first multi-national technology companies to register ...
Lenovo Reveals Intelligent Solutions & Partnerships at Transform 2.0
Mobility MEA becomes the first approved Android zero-touch enrollment partner fo...
His Highness Sheikh Ahmed bin Saeed Al Maktoum receives the President and Vice C...