Mumbai, April 8 Travel demand for Dubai is expected to normalize over the next five to six months, but hotel room rates and occupancy may take longer to recover, IHCL Managing Director and CEO Puneet Chhatwal said on Wednesday.
"Things will start to improve by September-October. However, it will take a bit longer to return to those rates, average achieved rates, and occupancy," Chhatwal said at the Hotel Investment Conference South Asia (HICSA).
IHCL operates three hotels under the Taj brand in Dubai, which saw a decline in occupancy rates following the West Asia conflict.
Chhatwal said the hospitality industry witnessed occupancy rates in Dubai declining from 80 per cent to 20-30 per cent.
"The summer period is the slow season in the Middle East due to extreme heat. So, rates actually dip between May, June, July, and August. With demand now impacted, rate recovery will take longer," he added.
However, Chhatwal said the domestic market remained robust and should benefit due to the West Asia crisis.
"Airfares have surged as airlines levy a fuel surcharge to recover costs, and this is impacting demand in long-haul markets," he added.