2011 Saw Steep Rises In Passengers At Dubai And Abu Dhabi Airports

Rise in passenger numbers reflects unrest in the Middle East and has positive implications for investors


Both Dubai Airports and Abu Dhabi International Airport enjoyed steep rises in passenger numbers of 8 per cent and 13.9 per cent respectively in 2011.

The strong performance of these major UAE airports reflects a rise in the number of tourists linked to unrest in the Middle East. But it also reflects rising confidence in the burgeoning UAE economy, especially in Dubai.

Boosting capacity
Dubai Airports, which is home to the biggest Arab airline Emirates, handled a record 51 million passengers last year and is investing US$7.8 billion to boost its capacity from 60 million passengers a year to 90 million passengers by 2018. The state-run Dubai Airports expects to complete Concourse 3, a dedicated facility for Airbus A380s, by the end of 2012.

Its passenger traffic was especially impressive in December 2011, when 4.69 million travellers passed through the airport compared with 4.26 million a year earlier, a year-on-year rise of 8 percent.

Trends set to continue
The state-run Dubai Airports chief executive, Paul Griffiths predicted that the positive trend would continue in 2012, with the airport’s two largest airlines, Emirates and flydubai, set to receive additional aircraft.

Meanwhile, passenger traffic at the smaller Abu Dhabi International Airport rose 13.9 per cent in 2011 to 12.4 million passengers, according to James Bennett, ADAC’s chief executive officer. He said the capital’s gateway cargo traffic had also risen 10 per cent to 481,500 tonnes. Bennett put the rises down to investment in new facilities, which has attracted new airlines and caused established ones to expand.

Etihad expands
The Abu Dubai-based firm Etihad Airways is also expanding its business with the acquisition of a 40 per cent stake in Air Seychelles. The deal is Etihad’s second airline acquisition in a couple of months. In a statement, Etihad said it and the Seychelles government would each invest $20 million in the state-owned airline.

The increase in passenger numbers is also having a knock on effect on Dubai’s hotel industry. In November 2011, room rates rose by nearly 19 per cent, while occupancy levels averaged close to 90 per cent. Overall in 2011, hotel occupancy levels were up by 4 per cent to an average of over 70 per cent.

Good news for investors
Rising demand in the hotel sector linked to rises in airport passenger numbers is making property developers confident about their new investments. After years of insecurity, the market looks back on track with 2012 set to be another year of growth. Prestigious new luxury developments, such as The First Group’s Tecom hotel apartments, Metro Central and The First Group's Grand Central, will add to the city’s diverse hotel supply.

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Original Source: 2011 Saw Steep Rises In Passengers At Dubai And Abu Dhabi Airports