Some hotels and restaurants in Dubai , Sharjah and Ajman are reducing their food prices to attract more customers in order to recover from the economic slowdown. The trend is most visible at middle-level restaurants and three-star hotels, which have recently seen a welcome dip in the cost of operations due to relatively lower rents and food prices.

Hotels classified as three-star by the Dubai Department of Tourism and Commerce Marketing have recently reported a rise in the number of guests, especially because there are many events either being held or planned in the city.

“We had guests who came for the Formula 1 car race staying in our Dubai property. People who are looking for cheaper options find the present rates affordable and our online booking, especially from the European sector, has started picking up [after the new rates were introduced],” said Francis Lobo, Deputy General Manager, Karama Hotels.

The clubs and night spots segment has witnessed an especially sharp fall in revenues over the period of the downturn, due mainly to the loss of property sector clients who used to be one of the main sources of business, said Lobo. The new Tantra club is an effort to boost sales in this segment timed to coincide with a resurgent economy, he added.

Karama Hotels, part of Al Abbar Associates, is running a winter promotion of $539 for two persons for a stay of four nights and three days, including the visa entry fees. It is also planning to open a Goan fine dining restaurant on December 10 in anticipation of the Christmas and New Year revellery.

Even mid-level restaurants are slashing menu rates.

Mayin NR, owner of Sagar Restaurant with branches in Deira, Bur Dubai and Sharjah, said: “Most restaurants have seen a 10 to 15 per cent fall in the number of customers. And customers are not spending as lavishly as they used to. A typical lunch now consists of only a biriyani, but no extra items like a fish or chicken dish.”
Source: Emirates Business 24/7