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Dubai Targets 35.5m Occupied Hotel Room Nights by 2019

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By Dipo Olowookere

Dubai’s diverse and vibrant hospitality sector is forecast to experience strong, sustained growth over the coming years, with occupied room nights set to reach 35.5 million annually in 2019, representing a robust 10.2 percent compound annual growth rate (CAGR) over the next 24 months.

According to a comprehensive study of the market by Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism), the emirate’s room supply is set to reach 132,000 by the end of 2019, growing at a 2-year (2017-2019) CAGR of 11.1 percent.

Meanwhile, occupancy levels are forecast to remain at an extremely healthy 76-78 percent despite growth in capacity, maintaining the attractiveness of the sector to hotel investors and developers.

The strong competitiveness of the sector is set to continue to be fuelled by increases in Dubai’s growing international overnight visitation and targeted increases in length of stays, supported further by recent and upcoming tourism attractions and experiences.

With concerted efforts to raise awareness in both established and emerging source markets, the duration of travel from new and existing segments are expected to see further growth in the medium term, positively impacting demand for room nights, which is in turn expected to outpace visitor growth over the coming 24-48 months.

“Dubai’s hotel industry remains at the forefront of cross-sector efforts to drive tourism growth, as we collectively work towards realising our Tourism Vision and enable our 2020 goals.

“Dubai’s position as the fourth most visited city in the world, and the consistent growth in overnight visitation, has been achieved in large part thanks to the efforts of our committed stakeholders in the domestic hotel and hospitality sector.

“With international and local investors, and operators continuing to actively pursue opportunities in Dubai, we expect to see not only sustained growth in inventory in line with our projected demand for occupied nights, but also further diversification across various asset classifications, to ensure that as a city we are the most globally competitive in providing our visitors the optimal range of options that cater to their preferences across the spectrum of hospitality offerings,” said Helal Saeed Almarri, Director General of Dubai Tourism.

At the end of 2017, Dubai’s hotel inventory stood at 107,431 rooms, with growth of 4 percent over the course of the year, and occupancy at a healthy and stable 78 percent despite capacity increase, thanks to the 6.2 percent growth in overnight visitors to 15.79 million.

The robust performance is particularly significant as it came amid challenging economic and political conditions across key source markets, including the volatility impact of fluctuating oil prices, Brexit and a strong US Dollar impacting Dubai’s global price competitiveness due to the fixed currency peg with the UAE Dirham.

Between 2013 and 2017, hotel inventory grew at a CAGR of 5.9 percent and a notable trend seen over that period was the development of more affordable mid-scale offerings, encouraged by Dubai Tourism incentives.

Building on the momentum since 2013, room inventory in the 3 and 4 Star categories is projected to continue to grow at 10 percent and 13 percent respectively through to the end of 2019.

This diversification of the hotel sector is part of the strategic focus on widening Dubai’s tourist base, enabling the city to attract larger volumes from new market segments across diversified source markets as evidenced by some clear preferences witnessed for more value friendly options suitable for longer stays and larger party sizes from key demand pockets.

Moving forward, further growth and demand for hotels and hotel apartments will be fuelled by the ongoing development of the overall tourism proposition in Dubai.

Following the 2016 introduction of Dubai’s theme parks – IMG Worlds of Adventures and the integrated Dubai Parks and Resorts – the properties have further enhanced the city’s attractiveness for families, while more recent additions such as Dubai Frame and Dubai Safari have already proven to be popular with both residents and visitors.

The 2017 opening of La Perle, the region’s first permanent theatrical show, added a fresh dimension to the cultural and entertainment scene in Dubai, while the Etihad Museum rounded off the historic side providing visitors with an immersive look at the story behind the formation of the United Arab Emirates.

One of the most integral supply drivers to support tourism growth is the aviation sector and Dubai’s evolution as a major tourism hub has been ably enabled by Dubai International Airport, which continued its reign as the world’s number one international airport in passenger traffic terms in 2017, delivering 88.2 million passengers, up 5.5 percent from 201 percent, with plans to expand capacity to 118 million by 2023.

Further growth in air traffic to Dubai will be also be fuelled by Dubai World Central, which in the longer term will ultimately have capacity to handle up to 240 million passengers a year.

Dubai’s retail sector also remained a core lever for tourism growth given that shopping has been a driver of tourist spend across most source markets.

As such, the planned infrastructure expansions reflect confidence in the demand from Dubai’s growing visitor volumes, with 900,000 square metres of new retail space set to come online through 2019, adding to the 600,000 square metres built between 2012-2017.

The size of the offering as well as its diversity – the emirate currently hosts 57.3 percent of global brands – has been furthered by Dubai’s Retail Calendar, which brings together the domestic industry around key retail-oriented festivals and seasonal activations to encourage greater consumption.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Travel/Tourism

Airlines Face Fresh Turbulence Over Jet Fuel Scarcity

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Jet Fuel Scarcity

By Adedapo Adesanya

The National Association of Aircraft Pilots and Engineers (NAAPE) has revealed that Nigerian airlines are battling a severe jet fuel crisis, triggered by soaring jet fuel prices and supply shortages.

This is the latest blow to the aviation industry, which escaped an industrial action by airline operators over the price of jet fuel.

The latest development is increasing costs, disrupting flights and creating concerns about operational safety and sustainability.

According to Reuters, the persistent scarcity of jet fuel has triggered ⁠widespread operational challenges, including flight delays, route adjustments and extended crew duty periods, as airlines struggle to manage schedules amid rising costs.

According to the President of the association, Captain Bunmi Gindeh, the fuel shortages were pushing crews beyond planned limits, increasing fatigue and potentially eroding safety margins in an industry governed by strict rest regulations.

According to local carrier Rano Air, it revealed that jet fuel prices had more than quadrupled, as well as made some routes commercially unsustainable, forcing operational adjustments.

Other carriers have also begun rescheduling or cancelling flights and cutting unprofitable routes, industry ‌sources ⁠cited by Reuters said.

This comes at a difficult time for Nigeria’s aviation sector, already strained by foreign-exchange volatility, high aircraft maintenance costs, airport infrastructure strains and fuel price swings.

Airlines group, Airline Operators of Nigeria (AON), last month threatened to suspend operations over what they described as crippling and artificially inflated jet fuel prices.

Nigeria’s airline industry carries millions ⁠of passengers annually across an extensive domestic network and plays a critical role in connecting cities where road travel is often slow or insecure, making reliable air services economically and socially important.

The publication reported that the Nigerian Midstream ⁠and Downstream Petroleum Regulatory Authority (NMDPRA) has said fuel prices would not be capped, adding that any decisions on deregulated products would be formally communicated.

The crisis is worsening existing problems in Nigeria’s aviation sector, including forex instability, expensive aircraft maintenance and weak infrastructure.

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Travel/Tourism

FG Unveils Leasing Initiative to Cut Airlines’ Fleet Acquisition Costs

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aviation workers

By Adedapo Adesanya

The federal government has approved the establishment of a national aircraft leasing company aimed at easing access to modern fleets for domestic airlines and transforming aviation financing in Nigeria.

The minister of aviation and aerospace development, Mr Festus Keyamo, announced the decision after a meeting of the Federal Executive Council (FEC), describing the move as a significant shift in how Nigerian carriers will acquire and finance aircraft.

Mr Keyamo said the proposed company would operate as a private-sector-driven Special Purpose Vehicle (SPV) with government backing.

“This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa,” he said.

According to the minister, the new platform will allow airlines to source aircraft through a centralised system, replacing the current model where operators negotiate individually with international lessors, often at higher costs and stricter terms.

Mr Keyamo noted that the government’s role would be largely supportive, providing sovereign guarantees to boost investor confidence, while private sector players drive the project.

“Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security,” he added.

The initiative, he said, has already begun attracting interest from both local and international investors, signalling early confidence in its viability.

Beyond supporting Nigerian carriers, the leasing company is also expected to extend services across West Africa and the broader continent, positioning Nigeria as a regional hub for aircraft leasing.

Airlines in Nigeria have come into focus in recent weeks due to renewed concerns over the financial sustainability of operators, which almost forced them to suspend operations last month. However, the Bola Tinubu-led government approved a 30 per cent relief on debts owed by local ‌airlines to aviation agencies and ordered talks involving fuel marketers, airlines, and ​regulators to reach a ​fair jet fuel price.

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Passengers to Enjoy Starlink Wi-Fi on Emirates’ Flagship A380

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Emirates A380 Starlink

By Aduragbemi Omiyale

Air travellers flying through Emirates will enjoy Starlink Wi-Fi onboard after the completion of the installation of the internet service on the company’s flagship A380.

The introduction of Starlink on the A380 builds on Emirates’ ongoing investment into redefining the customer journey, including one of the most ambitious retrofit programmes in aviation history.

The airline operator recently test-run this on a flight to Dubai, and it allowed passengers to enjoy seamless broadband while flying at 40,000 feet.

The Emirates A380 was one of the first commercial aircraft in the world to offer internet to its customers, with first-generation systems offering a total aircraft bandwidth of less than 1 Mbps. The installation and certification were accomplished in Newquay, UK.

With more A380s scheduled for accelerated installation throughout 2026, Emirates customers will soon enjoy a transformative leap in onboard connectivity with the ability to stream, game, browse, and work throughout their journey on personal devices.

The service will be complimentary for all customers, across all cabins, with easy sign-up and access. Future enhancements will include Live TV streaming over Starlink, initially on personal devices and later integrated into seatback screens.

So far, more than 650,000 Emirates customers have already flown on Starlink‑equipped flights, experiencing the benefits of next‑generation onboard connectivity firsthand.

As the world’s largest passenger aircraft, the A380 presents unique engineering challenges and opportunities. This industry-first Starlink configuration is designed to meet the demands of the A380’s ‘double-decker’ layout and high passenger capacity and is capable of delivering more than 2 Gbps of total aircraft bandwidth across the cabin.

Compared with the Emirates Boeing 777, the Emirates A380 features additional wireless access points and a third antenna to deliver an enhanced connectivity experience for its higher passenger capacity. Optimised inter‑deck integration supports a seamless Wi‑Fi experience, with customers able to enjoy high speeds depending on usage and device capability.

Starlink installations will soon begin at Emirates Engineering facilities in Dubai to accelerate deployment across the fleet.

Emirates is committed to bringing the best possible connectivity to its entire fleet at the earliest opportunity, with 25 Boeing 777-300ER aircraft already equipped with Starlink and the first A380 now joining service.

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