Under pressure from airlines restricting flights and governments advising citizens against travel to the UAE, Dubai's luxury hotel sector is shifting its focus to the domestic market. Major accommodation chains have simultaneously announced staycation packages with high discounts to mitigate losses from the international market.

At Jumeirah Group, which operates iconic properties such as Burj Al Arab and Jumeirah Beach Hotel, the group is running a 30% discount program exclusively for UAE residents. Beyond room rate reductions, additional privileges include two-for-one offers on spa and treatment services.

Downtown Dubai is home to many luxury hotels. Photo: Mai Phuong

The lowest room rate for two adults at Burj Al Arab in march is currently 905 USD, 40% lower than the average price of 1,500 USD. Address Beach Resort in the JBR area is offering a 30% discount for domestic guests from 5/3 to 30/4, bringing the room price down to 320 USD per night, approximately 250 USD less than the average of 571 USD.

Some other properties, including Al Khoory Atrium Hotel and JW Marriott Marquis Hotel Dubai, have recorded the deepest discounts, reaching nearly 60% off their usual listed prices on booking platforms.

The 5-star Shangri-La Abu Dhabi also launched a staycation package that includes a 15% discount on dining services. In the Jumeirah area, Roda Beach Resort reported a large volume of requests for extended stays after announcing promotional rates starting from 108 USD per night for late march.

This wave of price reductions comes as the conflict in Iran exerts significant pressure on the regional tourism industry. According to a report from the World Travel and Tourism Council (WTTC), the instability has led to an estimated 600 million USD daily drop in international tourist spending in the Middle East.

Regarding transportation infrastructure, a number of major airlines, including British Airways, Cathay Pacific, and Air Canada, have temporarily suspended routes to key hubs like Dubai. The tightening of air corridors and increased aviation security risks are direct causes of the shortage of international visitors.

To support the hospitality industry, the education authorities in the UAE adjusted the spring break for schools and universities a week earlier. This move aims to stimulate domestic tourism, allowing families to enjoy short getaways without needing to travel by air.

The expatriate resident segment in the UAE is currently taking advantage of this period to access premium services at lower costs. Poppy Johnson, a Dubai resident, stated that she recently concluded a stay at Grand Hyatt for 114 USD per night through a special package for Gulf residents. This price included breakfast and water park access, services that typically cost double or triple under stable market conditions.

According to experts, hotels accepting reduced profit margins to maintain cash flow is an inevitable step. With no signs of an early recovery in international visitor numbers, filling occupancy with domestic guests through staycation programs is a short-term solution to ensure the operation of personnel systems and luxury accommodation infrastructure in Dubai.

Mai Phuong (According to Insider)