Luxury hotels in Dubai have found a solution to the lack of tourists: “On weekends we have over 90% occupancy”

Villas on stilts, “infinity” pools and private beaches at low prices: in the absence of tourists, Dubai hotels are turning to local customers, who have now gained access to this level of luxury in the middle of the war in the Middle East, notes AFP.

On the man-made island of Palm Jumeirah, a symbol of the Gulf emirate's opulence, the vast lobbies of five-star hotels have resumed liveliness on weekends and public holidays, thanks to the influx of locals from the United Arab Emirates.

These customers, Emiratis and expatriates – about 90% of the population is made up of foreigners – were attracted by the unprecedented promotions.

“I've never stayed in a Palm hotel before because the prices were exorbitant,” explained Fadi Iskandarani, a Lebanese doctor who has been living in Dubai for five years, who had just spent a weekend with his partner at one of the many spa resorts on the palm-shaped island.

The atmosphere is, of course, not that of the glory days, several floors being closed due to lack of customers. But thanks to a resident tariff, four times lower than the regular price, “luxury in Dubai has become affordable,” he gloats.

A breath of fresh air for hotels

With 19.5 million tourists in 2025, Dubai was one of the top destinations in the region. Its 827 hotels – of which 173 were five stars – recorded an average occupancy rate of over 80% at the time.

But the war launched on February 28 by Israel and the United States against Iran, which expanded to the Persian Gulf, shook its image of stability.

Since a truce took effect on April 8, some tourists have returned, but the influx remains limited, said Michael Robinson, manager of Anantara The Palm hotel.

With its stilt villas, man-made lagoons and Thai-inspired decor, the hotel also attracts many locals, offering discounts of up to 50%.

“On weekends, especially Saturday nights, we usually exceed 90 percent occupancy,” Robinson said happily. From Monday to Thursday, the occupancy rate drops to 20 or 30%.

This new clientele is a breath of fresh air for hotels, even if it also brings a number of logistical challenges, especially in terms of parking, as residents mostly arrive by car. But it doesn't completely fill the gap.

Low wages and unpaid leave

But how long will this model last? “If the situation drags on until July, when the school holidays start and many families leave Dubai to spend the summer elsewhere, the demand for staycations will decrease,” admitted Robinson. A “staycation” is a vacation spent at home or in the area of ​​residence, as opposed to a trip further afield.

Some hotels have chosen to take advantage of the drop in activity to temporarily close and begin renovations, along the lines of the iconic Burj Al Arab palace. Others have cut staff or wages, particularly downtown establishments more dependent on business tourism.

An employee of one of those hotels, quoted on condition of anonymity because he was prohibited from speaking publicly, told France Presse that his salary had been cut by 40 percent.

Another, employed at a luxury hotel in the neighboring emirate of Abu Dhabi, was asked to take two months' unpaid leave before being called back recently.

Michael Robinson still wants to believe in a quick comeback.

“If an agreement is reached in the coming weeks, I think the tourists will come back faster than we imagine,” he said.

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