Dubai’s tourism sector set for another positive year

Dubai’s tourism sector set for another positive year

The Middle East’s leading investment bank EFG Hermes has increased Dubai’s market ranking from neutral to “overweight” as the country restructures its debt plan and shows economic growth.

Stocks that are “overweight” are considered good value for money, which is great news for Dubai and its growing economy.

There have been various reports that Dubai’s property sector has also shown positive signs of recovery and is continuing to strengthen despite problems elsewhere in the Middle East and North Africa.

Industry experts Fahd Iqbal and Simon Kitchen believe the macro environment will continue to strengthen in Dubai, “Debt restructuring will no longer be an overhang by year-end, with no government related entities expected to default.”

EFG Hermes analysts have predicted that there will be a further 10 percent upside for the Middle East and North Africa this year with many large cap stocks outperforming. The investment bank’s boost in rating is due to a recent report by CBRE. The world’s largest commercial real estate services company has stated Dubai’s tourism sector is set for another positive year in 2012.

Matthew Green, head of research at CBRE, stated tourism in Dubai started off well back in January and has built on the momentum received in 2011. Various events including Dubai Shopping Festival, Russian and Chinese New Year’s and Saudi school holidays resulted in many hotels reaching full occupancy rates.

Dubai welcomed 9.3 million hotel guests and cruise passengers last year, which was a 10 percent increase from 2010 where 8.49 million tourists visited the country. Matthew Green commented: “All signs in the first quarter are that 2012 will be a good year with Dubai remaining the regional heavyweight for the leisure-side market. We would also expect Dubai to continue to pick up tourism that would normally have gone to Egypt and Syria.”

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