Corporate travel rising as Dubai plays perfect host

July 29, 2024, 3:45 AM

The event industry in Dubai was worth over AED165 billion ($45 billion) in 2023 and is forecast to grow at a compound annual growth rate (CAGR) of 25 percent through to 2027 — The event industry in Dubai was worth over AED165 billion ($45 billion) in 2023 and international visitor numbers are increasing

175 events over next four years
Expected to bring 92,000 visitors
25% increase in visitors to DWTC

Dubai has won 175 deals so far this year that will boost the emirate’s corporate and business travel sector over the next four years.

The events, representing an increase of almost a quarter year on year, include international conferences, congresses and meetings.

They’re expected to bring more than 92,000 delegates to the city, according to a report from Dubai Business Events (DBE), part of Dubai Department of Economy and Tourism.

Dubai World Trade Centre welcomed 2.47 million people in 2023, marking a 25 percent increase in visitor numbers compared to the previous year.

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The results were driven by 301 meetings, incentives, conferences and exhibitions (MICE), business and consumer events, a 23 percent rise year on year.

That appears to have carried on into the current year, with event organisers reporting huge increases in attendances.

Danielle Curtis, exhibition director for the Middle East at Arabian Travel Market, says this year’s edition welcomed more than 46,000 industry professionals from over 160 countries – including 34,600 visitors, a 15 percent increase on 2023.

Face, Happy, Head Christopher Hudson, president of Dmg Events — Christopher Hudson, president of Dmg Events, says participation is growing from America

Messe Frankfurt Middle East, which is behind events such as Beautyworld Middle East, Automechanika Dubai and Intersec, says visitor numbers in the 2023-24 event season increased by more than 47 percent over the previous year, with the number of countries people travelled from also increasing by 34 percent.

“Participation is growing from the Americas, East Asia, Europe, and Africa, while Middle East and North Africa continues to be well represented in our attendees and events portfolio,” says Christopher Hudson, president of Dmg Events.

The event industry in Dubai was worth over AED165 billion ($45 billion) in 2023 and is forecast to grow at a compound annual growth rate (CAGR) of 25 percent through to 2027, according to a report by Dubai Pulse.

Hotels in the emirate are also reaping the rewards of increased corporate travel.

Total available rooms in Dubai reached 152,162 by the end of March, up from 148,877 rooms in March 2023. The number of establishments stood at 832 at the end of the first quarter, compared to 814 during the same period last year.

Hospitality giant Accor runs 40 hotels in the emirate. Paul Stevens, chief operating officer for the Middle East, Africa and Turkey, in charge of the premium, midscale and economy division, reveals Accor has seen a 40 percent rise this year in corporate segment revenues compared to 2023.

Person, Sitting, Adult Soham Shah, CEO of SelfDrive, says the car rental company has already seen a 15 percent rise in bookings — Soham Shah, CEO of SelfDrive, says the car rental company has seen a 15 percent rise in bookings

In particular, he says the “bleisure” travel trend, where guests mix a business trip with a leisure stay, is adding an average of two or three nights pre- or post-business engagements.

“Within the coming months, as the weather cools down, we also anticipate bleisure travellers, who come with families in accompaniment to their work, choosing villas and penthouses over regular apartments,” says Vinayak Mahtani, CEO of Bnbme Holiday Homes.

Mahtani says the holiday home management company has also witnessed a 40 percent increase in bookings year on year from business travellers.

Raheesh Babu, chief operating officer of Musafir, a business travel management app, said the average stay for corporate visitors is trending towards four to seven days.

“We have seen an increase in business travel to Dubai by 25 to 30 percent compared to last year,” he said.

From January to March this year, Dubai’s hotels maintained a room occupancy rate of 83 percent.

Despite a seasonal lull in events activity over the summer months, experts are confident of a typically busy end to the year.

“We have observed strong demand throughout 2024, with this trend extending into the fourth quarter, underscoring the market’s resilience,” says Kirti Anchan, general manager at Jumeirah Emirates Towers.

Soham Shah, CEO of SelfDrive, says the car rental company had already seen a 15 percent rise in bookings for the luxury segment from corporate clients, particularly from countries in the GCC region. He expects further growth of 30 percent for the remainder of the year.

“We remain optimistic about the continuation of this upward trend,” he says.