Published on : Monday, July 29, 2019
Due to slowdown in the emirate’s tourism industry Jumeirah Group has cut hundreds of jobs and according to people familiar with the industry it weighs on the operator of Dubai’s sail-shaped Burj Al Arab hotel.
As per sources hundreds of jobs were slashed recently by the operators of Burj Al Arab along with 24 hotels worldwide.
As the information was private the government-owned luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs.
Jumeriah has more than 13,500 employees according to its website and most of the cuts were support roles.
The tourism sector is stalled causing the Dubai’s hotels to struggle and the occupancy level was found to be the lowest during the second quarter since 2009.
The average daily rates and revenue available per room fell to 2003 levels as stated by STR, a global hotel data provider.
There has been an oversupply due to new opening ahead of the 2020 World Expo.
The geopolitical tensions, relatively low oil prices, the ongoing real estate and retail slump has caused Dubai-based companies and real estate developer and banks to cut down their staffs.
New measures have been introduced by the Dubai government to stimulate the economy by lowering business fees and providing long-term visas.