How will Dubai fit 20-25 million people coming to Expo 2020?
Expo 2020 is happening in about two years in Dubai opening on October 20, 2020. Dubai expects to welcome 25 million visitors between October 20, 2020, and April 10, 2021, 70% of which will be international participants in the grand event.
According to Propertyfinder, there will be an approx.
180,000 properties available in the coming years, up until 2020. Also, there has been an oversupply in the property market, and prices have been going down. According to data collected, a little more than 21,000 units were handed over in Dubai in 2017, and more than 10,400 units have been handed over so far this year.
“There are 40,000 units scheduled to be completed by the end of 2018. However, the materialization rate (the number that will actually occupy them) will be much less, probably around 15% to 20%, which has been the consistent rate over the last few years.
“There are more than 70,000 units scheduled to be completed in 2019 and 35,000 units scheduled to be completed in 2020,” Lynnette Abad, Director of Research and Data at Propertyfinder, told Khaleej Times.
During the Expo 2020, Dubai will be home to approx. 20 million visitors who would prefer to stay in Dubai for business, event purposes, tourism and/or employment reasons for a time period of whole six months. There will be a plenty room available than what is available now when residents of Dubai will open their doors to this traffic.
The hospitality sector has been booming since the news was out that Dubai is going to host Expo 2020. According to the local reports, Dubai’s hotel inventory stood at 107,431 rooms at the end of 2017. It is estimated that in 2020 there will be approx. 150,000 rooms in Dubai for the visitors.
According to Colliers International’s forecast, “There will be a five-year compound annual growth rate (CAGR) for hotel supply, which is expected to increase by 10% in the UAE.”
“The analyst community had over-blown the fears of an oversupply by speculating that in 2017 and 2018, close to 100,000 units would have entered the market. From 2017 to date, a total of 39,197 units have been realized, which is only 40% of the expected supply. We expect that a similar realization rate of supply is going ahead,” says Hussain Alladin, Head of IR and Research, Global Capital Partners.
Will This Be A Success?
The primary aim of World Expos is to deal with and manage new and innovative ideas. Expos have the power to uplift an idea or a business. They act like an Olympic event where the sports activities are replaced by tech ideas and businesses. Here, businesses from different country compete among one another to show the world their ideas and product or services that are aimed to solve any global challenge.
The idea of world expo is not a new one and has been in place for more than 150 years. It started in London when the United Kingdom tried to brag its industrial and cultural prowess including around 45 nations. However, the event was not as grand as it happens these days.
Dubai’s next years’ Expo 2020 is the event, which has been held in the Middle East for the first time. Usually, the place where the expos takes place are either in Asia, Europe, or North America. Dubai has high expectations from this event, which is evident from the theme of connecting minds and creating a future.
Prior to Dubai’s expo 2020, an expo of 2015 in Milan was highly hyped but was unable to deliver as per the expectation and hype created. It is not necessarily that these Expos are able to pull off the hype that they have created, and thus, sometimes they fail to deliver while delivering on others. Such an example of a successful Expo is of 2010 in Shanghai, which was able to attract around 73 million visitors.
Dubai is leaving no stone unturned to ensure that this Expo 2020 is able to deliver on the expectations. The advertising of the Expo is done using different approaches and channels. More than 40 Emirates aircraft are flying across the world along with sports superstars such as Lionel Messi to advertise on a global scale.
This expo is further aimed to show Dubai as an international business hub, which will open great opportunities for business. This expo is aimed to boost the economy, and it is expected to offer the job to around 50,000 people further annually.
Offering Residence to the Peoples
With the huge number of people to visit Dubai during Expo 2020, the challenges related to their stay has increased. While the public sector is ready with several infrastructures to ensure that the visitors have a nice stay in Dubai, the private sector, on the other hand, is also ready to cash this opportunity. Companies such as Airbnb and hotels are ready to capitalize on this event.
For more than six months, Dubai is expected to witness around 20 to 25 million visitors who are likely to stay in the city and will make it home for that time. These visitors can stay for several purposes such as business, tourism, event purposes, or for any employment-related reasons. Infrastructure is being built up to ensure that people have sufficient room to stay. However, at present, there is still need to develop enough residential areas for visitors to stay, which is not an easy task seeing the situation.
This fact has increased the hopes of the hospitality sector, which has witnessed a huge growth in the region. The hotel inventory in Dubai was at over 107400 rooms before 2018. All these ensure that the authority is well prepared to ensure that every visitor has a place to stay during the event. However, there is still the need for huge infrastructure construction and only time will tell, whether Dubai Expo 2020 will be a success or a failure similar to some of its predecessor Expos.