Dubai is an ever-evolving hotel market with new properties coming up every day. While several hoteliers are worried about an oversupply here, Timothy Kelly, Executive VP and MD Atlantis Resorts and Residences believes that Abu Dhabi and Ras Al Khaimah are the markets that could pose a challenge.
In an exclusive interview with Hotelier Middle East, Kelly spoke about how destinations like Abu Dhabi and Ras Al Khaimah have the potential to “shift the consumer business away from Dubai”.
Talking about the oversupply in Dubai, Kelly said, “I actually like that more hotel properties are coming up in Dubai. Within Dubai we feel very comfortable because we’re still anchoring our position. As long as we re-invent ourselves, we have something different for guests whenever they come back. We’re in a great position.”
“However, what I’m concerned about are other destinations like Greece, Turkey, Abu Dhabi, Ras al Khaimah and the Saadiyat Island,” he adds.
Kelly believes that the regional competition is growing and that some of the developments could impact the amount of tourists visiting Dubai. “Because we’re (Atlantis) are a destination unto ourselves, we compete against destinations. I’m more concerned about the regional competition and some of the developments that they are working on to shift the consumer decision away from Dubai.”
While he doesn’t name the properties in these destinations that are changing the game, Kelly said that a combination of great prices, offers and product could be potentially worrisome for hotel properties in Dubai. “You have to listen to what travel trade partners have to say. What they’re sharing with us is that some of these destinations have great offers, product with service and a great price. When you have these three variables they’re able to sell the product. My concern is that when they do this, they’re obviously going to be shifting the consumer business away from Dubai to their market.”