Many players in luxury hotels have turned to staycation packages in order to encourage domestic consumers to visit their facilities as international tourists gain slow momentum in 2021. As travel restrictions in the United Arab Emirates and around the world are being eased at different speeds, with travellers still requiring COVID-19 testing before leaving their home countries and upon arrival even with if vaccinated, the number of inbound tourists entering the country has resumed, supported by the opening of Expo 2020, although figures are lower than pre-pandemic levels.
Luxury hotels that were originally planned to open in 2020 before the pandemic emerged are now starting to open their doors in 2021, including SLS Dubai Luxury Hotel and Residences which officially opened on 5 April in Dubai. Present in North America, Latin America, Europe, Caribbean amongst others, it is also soon to arrive in Australia and Singapore.
As the government lifted travel restrictions in the United Arab Emirates, the country opened its doors to tourists and travellers once again, and therefore sales through luxury hotels improved in the second half of the year. As tourists returned to the country, many international consumers were encouraged to choose luxury hotels.
The recovery of luxury hotels will be supported over the forecast period by the development of COVID-19 vaccines around the world. However, the rate of recovery will also depend on the speed at which vaccines can be rolled out in the United Arab Emirates and in the main departure countries of inbound tourists.
In the coming years, social media is expected to be a key tool for players in luxury hotels, as the government will continue to promote the digitalisation of business in the United Arab Emirates over the forecast period. As such, luxury hotels are expected to increasingly turn towards social media in order to promote their venues and packages, and to engage with consumers.
The level of tourism in the United Arab Emirates is expected to greatly improve over 2021. This rapid recovery will partly be due to the end of COVID-19 travel restrictions and social distancing measures in the country, and partly by government initiatives to boost tourism and support luxury hotels.
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Luxury: includes luxury and upper upscale hotels. Would generally include 5-star hotels and above, but may include some “4.5-Star” outlets, provided that the brands positioning warrants it. The luxury classification is primarily determined by the brand’s positioning and marketing, which will be at the high-end. Brand examples include Marriott, Hilton, Sofitel and InterContinental.See All of Our Definitions
This report originates from Passport, our Luxury Hotels research and analysis database.
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