At the conclusion of 2008, there were 341 graded hotels and 152hotel apartments, accounting for 37,261 rooms and 13,196 apartmentunits. Roughly 5,000 hotel rooms came online in 2008.

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During 2008, the market saw its first decrease in occupancylevels in years. Due in large part to the new supply, occupancydropped 5% to 79%. Still during 2008, average room rates and roomyield continued to increase by 11.9% and 3.8% respectively. The2009 numbers, which are still being crunched, are likely to show asignificant decline thanks to the global economic woes. Accordingto JLL, revenue per available room probably declined 30% during theyear.

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Still despite declining RevPAR, in 2009 Dubai welcomed more than7.4 million people. The country hopes to increase that figure to 10million in 2010. According to a 2007 report by the Dubai StatisticsCentre, tourism accounts for more than 3% of the country's grossdomestic product. And in 2009 alone more than 7.4 million peoplevisited the country. Landmarks and real estate novelties like theBurj Al Arab Hotel, the tallest hotel in the world; the Burj Dubaitower, the tallest tower in the world; the Dubai Mall, the largestmall globally; and the Palm Islands including Palm Jumeirah; helpattract visitors.

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Europe accounts for the largest portion of the tourism market at28% of guest nights. The UK and Germany bring the most visitors.Asia comes in at a close second with 23%, this is due in part to alarge marketing campaign Dubai has launched in Japan to attractvisitors.

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As evident by the financial trouble of the government'sdevelopment arm, Nakheel, Dubaihas not been immune to the economic woes hitting the rest of theworld. While more than 5,000 hotel rooms are expected to enter themarket this year, that number of likely to taper off dramaticallyin the years to follow. From previous figures, the number of newrooms is expected to decrease by 60%. Between 30% and 40% ofproposed projects have been shelved and there have been nosignificant new project announcements.

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Still JLL expects hotel occupancy to remain fairly level between70% and 75% during the next three years, as occupancy will increaseat about the level that new supply is delivered. Average room ratesand room yield, on the other hand, are likely to drop during 2010before stabilizing in 2011.

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