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Chinese companies benefits from construction boom

Reporter: Nawied Jabarkhyl 丨 CCTV.com

09-22-2016 00:57 BJT

Chinese companies are benefiting from the growing number of hotels being built in the Middle East. There are currently over 150,000 rooms planned for the region, which means big opportunities for those supplying the industry. 55 Chinese exhibitors took part in this year’s Hotel Show in Dubai, a record number.

With warm weather, sandy beaches and some of the most lavish hotels in the world. It’s easy to see why Middle Eastern cities like Dubai are popular destinations for millions of travellers across the world. The hospitality industry here is among the fasting growing anywhere, with almost 85,000 hotel rooms currently being built in the region. It’s a fact that more Chinese companies are looking to benefit from.

According to research from STR Global, compared to a year earlier, there was a 3.5 % RISE in the number of people staying in Dubai’s hotels last month. But, they paid 10% less on average each day. Meaning revenue per available room – which is the industry measure of how well hotels are doing – fell 7% to around $110 per room.

One factor that’s likely to increase demand for Dubai’s hotels is the UAE’s decision earlier this month to make it easier for Chinese nationals to come here, by offering them visas-on-arrival. Dubai’s Ruler Sheikh Mohammed even took to twitter to announce the news.

Although hit by oversupply, analysts predict the region’s hospitality industry will move towards a balance in late 2017. Either way, China’s likely to play a larger role in it. Whether it’s the growing number of tourists who visit the Middle East. Or the Chinese businesses that are cashing in on a building boom.

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