Burj Al Arab said to cut about 500 jobs.
The Burj Al Arab (Tower of the Arabs) is a luxury hotel located in Dubai and of the tallest hotels in the world, it is the seventh tallest, although 39% of its total height is made up of non-occupiable space. Despite its size, the Burj Al Arab holds only 28 double-story floors which accommodate 202 bedroom suites. The smallest suite occupies an area of 169 m2 (1,820 sq ft), the largest covers 780 m2 (8,400 sq ft). Burj Al Arab stands on a man-made island 280 m (920 ft) from Jumeira beach and is connected to the mainland by a private curving bridge. The shape of the structure is designed to resemble the sail of a ship.
In the wake of hotels in Dubai registering a drop in occupancy rates, average daily rate (ADR) and revenue per available room (RevPAR), during Q2 in 2019, the Jumeira Group has reportedly cut hundreds of jobs.
As the slowdown in the emirates tourism industry leaves Dubai hotels struggling, the government-owned Group, which manages 24 properties with more than 13,500 employees in eight countries, got rid of about 500 jobs at its luxury Burj Al Arab hotel, as revealed by sources familiar with the matter who wish to remain annonymous.The same sources went on to claim that most of the job cuts were in support roles.
The emirate had a slow start to the year with Q1 recording low performances and Q2 was no different. According to STR - occupancy levels during the second quarter this year, were at their lowest since 2009 levels, while average daily rates and revenue available per room fell to 2003 levels. The global hotel data provider goes on to point out that, supply has now outgrown demand in Dubai for six (6) consecutive quarters.
Data released by STR also revealed that UAE had the highest construction of hotel rooms in the Middle East with 56,701 rooms, representing 33.6% of the country’s existing supply.
A leading consultant attributes the decline in Dubai hotels ADR as primarily driven by the increase in supply coupled with only marginal growth in visitor arrivals. As such, hoteliers are resorting to discounting their rates in order to continue attracting their fair share of demand.
Report compiled by in2ition.
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