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UAE Hotels Lean on India, China and Russia as Long-Haul Demand Stalls
Hoteliers across the United Arab Emirates are refocusing on travellers from short-haul markets to rebuild occupancy after Middle East unrest and higher airfares deterred long-haul, high-spending guests.
Operators in the Emirates are prioritising source markets within a five- to six-hour flight radius, with India, China and Russia at the centre of their recovery plans. Saurabh Tiwari, vice president for the Middle East, Maldives and Sri Lanka at IHCL, which runs the Taj brand, said the shift is a direct response to elevated jet fuel costs.
Those fuel prices have pushed up airfares, making travel from the Americas and Australia far harder to sustain. Tiwari said it would be "wishful thinking" to expect long-haul visitors to return in force under current pricing conditions.
India has proved IHCL's most dependable source market through the disruption, according to Tiwari, helped by its proximity and comparatively cheaper flights than long-haul alternatives.
The pressure has landed unevenly across the market. Luxury hotels built around long-haul, high-spending guests have been hurt by regional unrest, while budget and midscale properties have fared better because they draw from a wider spread of arrivals.
Lower room rates are also widening Dubai's appeal to more price-sensitive travellers, adding another lever for hotels trying to fill rooms while expensive flights keep some traditional visitors away.