Travel AND Tour World published on Monday, July 29, 2019, this article elaborating on the current tourism together with other types of related business activities in the Gulf region. Dubai with its impressive urban development, artificial islands and other coastline attractions has been for a time spearheading the regional shopping and business tourism. The recent economic uncertainties within the GCC countries as well as through the political movements of the US, the EU and all other heavyweights vested interests of the world economy seem to be behind this story.
Due to a slowdown in the emirate’s tourism industry, Jumeirah Group has cut hundreds of jobs and according to people familiar with the industry, it weighs on the operator of Dubai’s sail-shaped Burj Al Arab hotel.
As per sources hundreds of jobs were slashed recently by the operators of Burj Al Arab along with 24 hotels worldwide.
As the information was private the government-owned luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs.
Jumeriah has more than 13,500 employees according to its website and most of the cuts were support roles.
The tourism sector is stalled causing Dubai’s hotels to struggle and the occupancy level was found to be the lowest during the second quarter since 2009.
The average daily rates and revenue available per room fell to 2003 levels as stated by STR, a global hotel data provider.
There has been an oversupply due to new opening ahead of the 2020 World Expo.
The geopolitical tensions, relatively low oil prices, the ongoing real estate and the retail slump has caused Dubai-based companies and real estate developer and banks to cut down their staffs.
New measures have been introduced by the Dubai government to stimulate the economy by lowering business fees and providing long-term visas.