Tourism revival in UAE: Abu Dhabi hotel occupancy highest since start of COVID-19 pandemic

Hotel room rates have surged in neighbouring Dubai, which will host Expo 2020 from October (Representative image)

Tourism, which is one of the driving factors of the UAE economy, has shown signs of clear revival across the Emirates. According to research firm STR, hotel occupancy in Abu Dhabi has climbed to its highest point since the start of COVID-19 pandemic.

Hotels in the Emirati capital city were 68.5 percent full in June, Bloomberg reported, citing the the preliminary data shared by STR. In the same period, revenue per available room - which is key to determine profitability - rose to $59.67 or 219.81 dirhams - the highest since February 2021.

Apart from Abu Dhabi, the occupancy of hotel rooms, along with the rates, were also reported to have risen in Dubai. The latter would host the extravagant six-month Expo 2020 from October.

In the first five months of 2021, the occupancy rate in Dubai hotels increased to 58 percent, higher than 46 percent in the same period in 2020, according to JLL’s UAE Real Estate Market Performance study.

Also Read | Expo 2020 Dubai: Ticket sale from July 18 onwards; daily, monthly and seasonal passes offered

Data recently released by Dubai’s Department of Tourism showed 3.7 million overnight tourists visited the city between July 2020 and May 2021. The administration has lifted most of the curbs, as around 64 percent of the population has been totally vaccinated, whereas, 71 percent has received at least the first dose.

In Abu Dhabi, mild restrictions which bar overcrowding continue to remain in place. The administration plans to allow only vaccinated persons at public places and events from August.

The high pace of vaccination in UAE is considered to be the prime reason behind the revival of tourism in the country.

Although the number of visitors are rising to Emirates, the United States has placed the country in the list of places with high alert. The United Kingdom has also placed UAE in the "red list", whereas, Saudi Arabia has temporarily barred travel to the neighbouring country.