Dubai holiday homes – A tough competition for hotel operators

Holiday homes in Dubai are giving hotel operators a run for their money following the introduction of new regulations.

Group of human palms on all sides of a cut out house diagram with setting sun coming through window over water

The Dubai Government started regulating holiday homes market in 2013, and since then there has been an increase in their numbers. At at the end of the first half, there were around 4,200 units available in Dubai on Airbnb alone, up from around 2,000 for the entire last year. The affordable hotels market is already under pressure from lower room rates in the luxury segment.

Dubai Tourism signed an initial agreement with Airbnb to help to grow and diversify the emirate’s tourism sector. It followed Dubai Tourism in April introducing regulations simplifying short-term rentals in Dubai via Airbnb and other short-term home rental websites. Airbnb will work with Dubai Tourism to help prevent breaches of the newly drafted regulations by informing all host members of the Dubai Tourism rules.