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- October 13, 202618°
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Dubai’s Luxury Hotels Turn to Residents as War Tourism Hits Hard
Luxury hotels in Dubai have opened their rooms to city residents with discounted stays as regional conflict keeps foreign tourists away. While local demand keeps the sector afloat, hotel managers say it cannot replace international visitors in the long run.
Once accessible only to wealthy foreign tourists, luxury hotels in Dubai are now relying more on city residents due to the impact of regional conflict. Especially the properties in Palm Jumeirah are trying to fill rooms with discounted "staycation" packages.
Some of the city’s elite hotels have sharply reduced their prices to offer broader access to residents of the United Arab Emirates. As a result, many people who previously stayed away due to high prices have had the chance to experience luxury vacations for the first time.
Lebanese doctor Fadi Iskandarani, who lives in Dubai, said he visited a hotel in Palm for the first time and that prices have dropped to about a quarter of what they used to be. He noted that the hotel is not operating at full capacity, with some floors closed due to low occupancy, but the pool area is filled with local guests.
Dubai has long been one of the Middle East’s leading tourism hubs. The city’s tourism sector hosts around 19.5 million visitors annually; among 827 hotels, 173 are five-star, and occupancy rates often exceeded 80% in the past.
However, the war that began on February 28 with US-Israel attacks targeting Iran severely disrupted travel patterns in the Gulf. The conflict weakened the perception of the region as a safe destination; hotels in the UAE and iconic sites like Palm Jumeirah and Burj Al Arab were targeted in missile and drone attacks by Iran.
Although a fragile ceasefire that took effect on April 8 has brought back a limited number of tourists, hotels still largely depend on domestic demand. Michael Robinson, general manager of Anantara The Palm Dubai Resort, said offers aimed at residents have become necessary to keep the business running.
According to Robinson, the resort offers discounts of up to 50% for UAE citizens and residents. Weekend occupancy usually ranges between 70% and 90%, while on weekdays it drops to 20% to 30%.
The resort management states that demand from local guests supports revenues, helping the business stay open and avoid layoffs. The hotel is also known for its overwater villas, artificial lagoons, and Thai-inspired design.
Industry representatives believe local demand alone will not suffice. Robinson said the "staycation" business essentially involves one- or two-night stays, whereas international tourists used to stay up to a week.
Concerns are growing as the summer season approaches. Many migrant families leave the country for vacation in July and August, shrinking the local customer base. Robinson noted that if tourists do not return, "staycation" demand will also weaken during this period.
Pressure on the hospitality sector has already led to some measures. Some hotels, including Burj Al Arab, have temporarily closed for renovations due to the drop in visitor numbers. Staff reductions or salary cuts have been reported, especially in city center hotels dependent on business travel.
An anonymous hotel employee said their salary was cut by up to 40% during and after the war but was later restored to the previous level. Another hotel worker in neighboring Abu Dhabi was placed on unpaid leave for two months but is expected to return to full pay soon.
Although peace talks have been ongoing for over two months, intermittent military attacks across the Gulf keep uncertainty alive. Nevertheless, hotel managers remain hopeful that political progress in the near future could quickly revive tourism.
Robinson said that if a solution emerges within the next month, tourists could return faster than expected. For now, Dubai’s luxury hotels are trying to survive by relying on residents seeking discounted getaways.
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