How Does Dubai’s Financial Situation Affect Travel
The news of the financial crisis of Dubai has nothing to do with the truth. It is a fact that US recession has affected the economy of Dubai, but this once oil rich state is economically viable to get over the crisis. The fact is that the financial and housing sectors are among the most affected by the downturn.
There was a time when the construction in the emirate seemed to be unending. The sounds of hammers and chisel were omnipresent even in the night. Now this all has come to a halt resulting in unemployment. The property prices have come down. hotel room rentals have also come down.The boom in the real state is over now.
After the sinking of the reality sector the hotel industry of Dubai was in shock. The planners of the urban development had overestimated the need of hotels. Asia Asia was planned to be the largest hotel of the world. The rentals of rooms in hotel are still high. Offices spaces are most expensive in the world. The save the economy from the downturn Dubai will have to make so many things affordable
It will take time for the Dubai hotel bookings to reach its full capacity once again. The entire Dubai hotels have slashed their rates in order to be in the race. The fierce completion for survival in the industry is proving to be a boon for the customers.
It is evident that the recovery in the economy and hotel industry will depend on many factors like doing business,construction etc. There is a report that the news that rentals for residential property have fallen 38 percent since 2009,with 18 percent decrease in Abu Dhabi.
The good feature of the story is, the recent increase in the investing activities is a good sign of recovery.Exess liquidity and easy moneatary measures resulted in the low interest rates. Dollar depreciation led to flow money out of banks into property.
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