Dubai is preparing for a strong recovery from the current global tourism slowdown, with the hotel sector pushing ahead with a major expansion programme to satisfy the anticipated long-term growth in demand.

As of mid-2001, the Department of Tourism and Commerce Marketing (DTCM) had 277 hotels providing a total of 21,608 rooms on its books, plus 134 hotel apartment complexes with some 6,000 units.

But these numbers will have to be substantially increased to meet the expected rise in visitor numbers from 3.42 million last year to some 15 million by 2010, according to the DTCM.

Dubai's commitment to meeting this challenge was well illustrated by the recent announcement that the Palm Islands project will incorporate some 80 luxury boutique hotels, 40 on each island.

While detailed plans are yet to be finalised, these are likely to open over the next three to eight years. The Kempinski signed up within days of the announcement of the project and interest from other hotel groups is reported to be strong, a DTCM official said.

A number of other significant beachfront developments are in the pipeline, according to the official.

The German travel industry giant TUI has announced plans to open two adjacent 300-bedroom hotels, one under the group's five-star Robinson Select brand and the other an Iberotel.

Two of its existing properties, The Royal Mirage and Sheraton Jumeirah Beach Resort and Towers, will complete extensions next year providing an additional 200 and 205 rooms respectively.

Beach hotel capacity will be further boosted by the 228-room Oberoi Jumeirah, part of the Dubai Marina project, in 2003.

Another forthcoming beachfront resort, Madinat Jumeirah, is designed to offer visitors an authentic experience of the region's history and heritage in a luxurious setting.

To be completed by July 2004 on a 78-acre site next to its world-famous sister properties, the Jumeirah Beach Hotel and Burj Al Arab, it will incorporate a 156-room five-star hotel and villa accommodation featuring traditional Arabic architecture, as well as waterways with abras, a suq and cultural village. The expected completion date is 2003.

The region's history and traditions will also be the theme of the DTCM's planned Hatta Heritage Village resort in the Hajar mountains, an hour's drive from the city. Accommodation will be provided in fully-serviced chalets and suites in traditional architectural styles and the development will incorporate a village plaza, suq and handicraft workshops.

Elsewhere, a number of hotels have opened recently or will come on stream by the end of this year. Several of these are in the city's Deira district, including the 159-room, 90-apartment Taj Palace Dubai, the 156-room Hilton Dubai Creek (see Page 78), the 96-room Howard Johnson and 119-room Hamriya Hotel, as well as the Marriott-operated Skywalk Towers with 172 apartment units.

On the other side of Dubai Creek, the new Holiday Inn Bur Dubai has 240 rooms and the Dusit Dubai on Sheikh Zayed Road has 174 rooms and 147 apartments.

Early 2002 sees the opening on Sheikh Zayed Road of the 393-room Fairmont Dubai, the first Middle East venture for the North American group, to be followed by the region's first Shangri-La, a 300-room property in Bur Dubai.

The biggest new property to open next year will be the Grand Hyatt near the Wafi Centre in Bur Dubai (see Page 60). Focusing on the conference and incentive market, this hotel will offer 674 rooms and 186 apartments.

Next year also sees the first waterfront hotel development at the inland end of Dubai Creek, a 330-room and 452-apartment property in the Al Jaddaf area.

Two of the hotels opening in 2003, the Accor group's 200-room Ibis and 400-room Novotel, will be a part of the new Dubai Convention Centre development, being built adjacent to the Dubai World Trade Centre in time to host the IMF/World Bank annual meeting.

In the same year, Taj will open its second property, providing 320 rooms on Sheikh Zayed Road, as will Shangri-La with a 205-room Traders brand hotel in Deira.

Among other noteworthy developments, Dubai's widely publicised indoor real snow ski slope, which is scheduled to open in 2003, will incorporate a 400-room hotel, while a 2004 completion date is expected for the Pyramid Hotel, a substantial property of 645 rooms at the junction of Sheikh Zayed Road and Al Diyafah Street.