Dubai has earned the honor of hosting World Expo 2020, becoming the first city in the Middle East to host the prestigious international event. The World Expo, which is held every five years, is set to have a huge impact on the city’s property values and hotel industry, not to mention creating a wealth of jobs and business opportunities.
Hotels, Tourism and Trade Growth. It is estimated that the World Expo 2020 would boost Dubai’s economy by a staggering $23 billion, amounting to 24.4% of overall GDP and the creation of over 277,000 jobs. According to the Bank of America Merrill Lynch, this would also serve to boost GDP by 2% between 2020 and 2021. While over 10 million people visited Dubai in 2012, officials forecast that 17.5 million could flock to the city during the six months of the World Expo alone, providing a massive boost to the city’s tourism and hotel industry. Last year, Dubai’s hotels recorded a highly impressive $5.12 billion in revenues, marking a 17.9% year on year hike. With the World Expo in town, these figures already promise to be even more lucrative.
What this means to investors. "This is a really exciting time for investors in Dubai's hotel industry, given the soaring numbers of visitors that are predicted to come to the city for the World Expo 2020," agreed Danny Lubert, co-founder and joint chairman of The First Group. "Over the next few years in the run up to the event, we are likely to see a big rise in demand for hotel property. There has really never been a better time to buy, and the World Expo will only serve to strengthen Dubai's standing as the world's most vibrant hotel market. We are urging people to invest now, before prices become too much of a premium."