On Palm Island, the artificial island that has become a symbol of luxury in Dubai, five-star hotels are bustling during weekends and holidays, despite being previously empty.
The influx of guests comes from hotels offering exclusive deals for city residents, which has become a “lifeline” for Dubai’s luxury tourism sector.
“I have never stayed in a hotel on Palm Island because the prices were too exorbitant,” said Fadi Iskandarani, a doctor in his 60s, who just experienced his first weekend getaway at a luxury resort on Palm Island.
Iskandarani, who has lived in Dubai for five years, chose to vacation where he resides after noticing a hotel on Palm Island offering a discount of up to four times.
The hotel he chose was not fully booked, with some floors closed due to low occupancy. However, the pool area was crowded. According to Iskandarani, these were people who opted for Palm Island to enjoy a bit of luxury they had long been unable to afford.
“Luxury in Dubai has now become affordable for residents. It used to be reserved for the wealthy, the very wealthy,” Iskandarani said.
Images of Anantara The Palm Dubai resort on June 6. Photo: AFP
With 19.5 million tourists each year, Dubai is among the top destinations in the region and has long been regarded as a playground for the rich and famous worldwide. The 827 hotels here, including 173 five-star establishments, typically had an average occupancy rate of over 80% before the outbreak of conflict.
However, after regional conflicts erupted following U.S. and Israeli attacks on Iran on February 28, the Gulf region lost its image as a stable haven. The UAE has been one of the places affected by missile and drone attacks from Iran.
Michael Robinson, the general manager of Anantara The Palm Dubai, stated that since a fragile ceasefire took effect on April 8, some tourists have arrived, but hotels mainly rely on local guests. These individuals are part of the “staycation” trend. Instead of traveling far, they choose to relax and enjoy resort services right in their city.
This new influx of customers has provided a significant revenue stream for hotels, allowing Anantara The Palm to maintain operations without having to lay off staff. However, Robinson added that the “staycation” trend cannot be sustained long-term.
“Essentially, ‘staycation’ only lasts 1-2 nights, whereas previously, guests from international markets could stay for a week,” Robinson said.
Many hotels in Dubai have had to cut staff or reduce employee salaries. An anonymous hotel employee reported that his salary was cut by up to 40% during the conflict, before returning to normal in recent weeks.
Another employee at a hotel in nearby Abu Dhabi mentioned that he had been placed on unpaid leave for two months but is soon returning to work with his previous salary.
Negotiations to end the war have lasted two months, and sporadic attacks continue in the Gulf, putting pressure on the tourism sector. Nevertheless, Robinson remains optimistic.
“If we see some resolution in the next month or so, I think tourists will return faster than people expect,” he said.
Ngọc Ánh (According to AFP, Reuters)
