Travel/Tourism
Dubai Targets 35.5m Occupied Hotel Room Nights by 2019
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.
Travel/Tourism
Airlines Fault Claims of Unpaid NCAA Regulatory Fees
By Adedapo Adesanya
The Airline Operators of Nigeria (AON) has denied owing cost recovery charges to the Nigeria Civil Aviation Authority (NCAA), insisting that all services rendered by the regulator to domestic airline operators are paid for fully in advance on a cash-before-service basis.
In a statement from the airlines’ body, it was emphasised that no domestic airline in Nigeria receives NCAA regulatory services without first making full payment of invoices issued to it by the agency, describing suggestions of the indebtedness for regulatory services as factually inaccurate.
It said that what the NCAA refers to as ‘outstanding charges’ relates solely to the 5 per cent Ticket Sales Charge (TSC), a tax imposed by the NCAA on passengers, which it said is not in consonance with the dictates of international aviation.
The AON then urged the federal government to urgently amend the Civil Aviation Act to empower the NCAA to collect whatever appropriate fees and charges are due it directly from passengers or whoever else, without routing such through the domestic airlines, from June 1, 2026.
It said doing this will relieve domestic airlines of the financial burden of acting as collection agents for the NCAA, since airlines currently bear banking transfer charges and other transaction costs in the process of transmitting funds to the organisation.
The airline body reiterated its position that the NCAA is a regulator, not a revenue-generating agency and that it does not fund any aspect of the airline businesses or render any direct service to passengers.
The AON said every service the agency provides to airline operators is fully paid for in advance before it is rendered.
“The AON notes that several member airlines maintain dedicated accounts, from which the NCAA draws down its monthly remittances, until the force majure caused by the Iran-Israel/USA conflict, which had put a lot of financial pressure on airlines worldwide.
“Notwithstanding this arrangement, the AON had formally appealed to the federal government through the office of the Minister of Aviation and Aerospace Development, to suspend the payment of all statutory charges temporarily, as an interim measure to assist airlines in managing their cash flows during the current period of severe financial stress caused by the increase in the cost of Jet A1.
“As an interim response, President Bola Tinubu graciously granted a 30 per cent concession while waiting for the government’s decision on the other aspects of the AON intervention request.
“While the AON acknowledges and appreciates this gesture, we had appealed for a meeting with Mr President to discuss further reliefs, a request that is yet to be granted,” the AON said.
Speaking further on reports that airlines owe billions in debt to the NCAA, the AON said the 5 per cent Ticket Service Charge in question was introduced over 45 years ago under the Government of General Gowon by the then Federal Civil Aviation Authority (FCAA) and its continued relevance has not been reviewed ever since.
It further stated that domestic airlines, in addition to the 5 per cent TSC, still pay separately ànd directly for services provided by the various industry agencies, including the NCAA itself.
AON said that the 5 per cent TSC is an ad valorem tax applied to an airline’s gross earnings, not profits and that the global aviation industry operates at a profit margin of between 1.5 per cent and 2.5 per cent at best.
“The AON remains committed to constructive engagement with the government and all stakeholders to achieve a growth-oriented sector, designed to enable the accelerated growth of key sectors of the economy and the improvement and sustenance of a healthy quality of life for the citizenry,” it said.
Travel/Tourism
Airline Remittances: NCAA Halts Enforcement of ‘No Pay, No Service’ Policy
By Adedapo Adesanya
The Nigeria Civil Aviation Authority (NCAA) has announced the temporary suspension of its “no pay, no service” directive earlier issued to airlines with outstanding statutory remittances, citing ongoing consultations and prevailing operational challenges in the aviation sector.
In a statement, the authority said the decision followed a review of industry conditions, particularly the rising cost of aviation fuel, which has placed significant financial pressure on domestic carriers and threatens overall sector stability.
However, the NCAA stressed that the suspension does not amount to a waiver, cancellation, or forgiveness of the debts owed by the affected airlines, noting that such decisions fall outside its regulatory mandate.
The agency recalled that President Bola Tinubu had earlier approved a 30 per cent discount on outstanding statutory charges owed by domestic airlines to aviation agencies, as part of broader government efforts to cushion the impact of high Jet A1 fuel costs and stabilise the industry.
According to the NCAA, airlines remain fully responsible for settling their obligations, adding that it would engage operators individually to ensure compliance through structured repayment arrangements that do not disrupt operations.
The regulator also clarified the nature of the 5 per cent Ticket and Cargo Sales Charge, describing it as a statutory levy mandated by the Civil Aviation Act and embedded in the cost of air travel and cargo services.
It explained that the charge is collected by airlines at the point of ticket and cargo sales on behalf of the aviation system and must be remitted accordingly.
The organisation emphasised that the funds do not constitute revenue or profit for the airlines and should not be treated as such.
It further noted that the revenue from these charges is distributed among key aviation institutions, including the regulator itself and other service providers, all of which play vital roles in ensuring safe, efficient, and internationally compliant aviation operations.
It added that the NCAA operates on a cost-recovery basis and does not receive direct funding from the Federal Government for its routine regulatory activities, making timely remittance of statutory charges critical to sustaining its oversight functions.
The suspension of the enforcement directive, it said, is a measured step aimed at maintaining operational stability in the sector while reinforcing the obligation of airlines to remit collected charges.
The NCAA reaffirmed its commitment to balancing regulatory enforcement with industry sustainability, warning that statutory funds already collected must be remitted for their intended purposes.
Travel/Tourism
Emirates Skywards Commences ‘Season of Rewards’ Campaign
By Modupe Gbadeyanka
A new campaign designed to celebrate its passengers across the globe has been launched by Emirates Skywards, a statement from the company confirmed.
The promotion is known as Season of Rewards, and will run from May 21 to August 31, 2026, with beneficiaries getting different rewards for their patronage.
The Skywards Season of Rewards offers more savings with Cash+Miles on Emirates and flydubai, with members unlocking twice the savings, including enhanced Cash+Miles rates across the Emirates and flydubai network when booking flights and extras (excess baggage, lounge access and seat selection. The offer applies across all classes of travel, fare brands and destinations on both airlines. With the limited-time offer, 2,000 Skywards Miles can unlock savings of $30 instead of $15.
In addition, passengers will receive extra tier benefits for travel up until August 31, 2026. Members earn a 20 per cent bonus Tier Miles on every Emirates or flydubai flight, helping members move through the tiers faster. With reduced Tier Miles required during this period, it’s now even easier for members to renew or upgrade their membership status.
Also, they will get 50 per cent bonus Miles with travel partners, including Emirates Skywards Hotels, Marriott Bonvoy, IHG Hotels and Resorts, Jumeirah and more. However, registration is required to participate, and bonus Miles will be credited within 60 days after the end of the offer period.
Further, Skywards members can book their next reward flight and extras with Miles, starting from 4,500 Miles instead of 9,000 Miles during the promo period across all routes, cabins and fares.
“Skywards Season of Rewards reflects our continued commitment to creating even more value for our members worldwide.
“Whether members are planning a family holiday, a Dubai stopover, a weekend escape, or simply looking to maximise rewards across their travel spend – this initiative unlocks more opportunities to earn, save and experience the world with Emirates Skywards,” the DSVP Emirates Skywards, Nejib Ben Khedher, said.
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