Life in Dubai seems to have returned to its normal course, at least outwardly. While air traffic has resumed and restaurants are once again fully booked, tourists remain hesitant to visit, particularly because the emirate is still threatened by missiles and drones coming from the Gulf.
Even though most attacks have been intercepted before reaching the United Arab Emirates, fear is still present on the ground. This is why hotels, airlines and hospitality and food-service players are redoubling efforts to entice visitors to return.
Tourism stakeholders are trying to reassure visitors
CNN Travel went to meet several Dubai residents to better gauge the situation on the ground. The outlet in particular spoke with Naim Maadad, founder and CEO of Gates Hospitality, who explained that information relayed by international media did not necessarily reflect the reality on the ground. “Airports, hotels, restaurants and tourist attractions remain fully operational”, he said at first. He then stated that the main challenge was psychological.
“Travel advisories, insurance limitations and international news inevitably influence consumer behavior, even if the on-the-ground reality is very different. The sector must therefore redouble its efforts to communicate reassuring, transparent and trustworthy messages, without giving the impression of downplaying regional sensitivities,” he said. Victor Abou-Ghanem, CEO of STORY Hospitality, also stressed that travel warnings were hindering visitors’ return.
“For a family planning a vacation, a government advisory, an insurance restriction or the fear of flight disruptions can be enough to postpone a trip, even if the destination operates normally”, he recounted before adding that money was also a factor, with oil prices impacting air tickets. Economists warn that repercussions could be felt long after a durable ceasefire. They estimate that Dubai’s hotel occupancy could fall to as little as 10% in the second quarter, down from 80% before the conflict.
Measures put in place to revive tourism
In response to this decline in tourism, Dubai authorities acted by launching an ambitious set of support measures designed to speed up the rebound. Among them were the suspension of the daily hotel tax applied to upscale establishments, the removal of the 7% municipal tax on hotel and restaurant invoices, the deferral of hospitality-related sales fees, and the waiving of fees for the extension and cancellation of event permits.
The authorities also allowed hotels, serviced apartments and holiday homes to defer payment of taxes on lodging and dining for three months, easing pressure on operators as visitor numbers began to rise again. Businesses responded by offering promotions and incentives rarely seen since Dubai’s post-pandemic tourism boom.
A fashion designer based in Dubai for nearly 20 years, who asked to remain anonymous, said the scale of discounts currently offered across the emirate is unprecedented since the Covid-19 pandemic began, especially in the tourist district of J1 Beach. “Many of these places, once crowded, are now offering exceptional discounts. The city keeps functioning, people keep going out, but businesses must double their efforts for every customer,” he stated.
