DUBAI — Youssef Jammal, a regional hospitality expert based in the UAE and head of hospitality and retail in 'The H Holding Enterprise', a leading investment group in the country, said the food and beverage (F&B) sector is set to grow 36 percent by end of 2015. Quoting a report by the British firm KPMG, he said another 1,600 food and beverage outlets would be added by 2019 in Dubai.
“Food sales could grow to AED 38.5 billion in 2015 from AED 28.3 billion in 2011, an increase of 36 percent. Our hospitality outlets across the UAE have recorded unprecedented sales, exceeding our expectations for the first half of 2015,” added Jammal.
The company, which has operations in various investment sectors, currently runs several food and beverage as well as entertainment outlets, including Monte Carlo Stars, Cash, L Club, LUA plus others. “Expansions in this vital and vibrant sector have been very rewarding. We have allocated higher budgets for expanding into new projects in Dubai's F&B sector,” said Jammal.
The H Holding has firm plans to incorporate diversified retail and hospitality services under one roof. The company has been achieving new milestones driven by a highly enthusiastic and experienced team who is pursuing operations across various segments, including restaurants, lounges, real estate, event management and media production, among others.
The UAE's food and beverage sector will need to more than quadriple in size over the next five years to meet demand from hotel and retail projects currently under development in Dubai.
About 19,000 extra F&B outlets are expected in the UAE by 2019, according to Euromonitor International, which also says that there are currently 6,021 outlets in the Emirates.
“High growth rates witnessed over [the] last five years are expected to continue over the 2014-19 period, with sales values expected to show an average 8 per cent annual growth,” said Nikola Kosutic, a research manager for Euromonitor.
Last year 11 million tourists, a rise of 10.6 per cent over 2012, checked into Dubai's 611 hotels and hotel apartments. By 2016, Dubai is expected to add 139 properties, including 91 hotels and 48 hotel apartments, according to the Department of Tourism and Commerce Marketing. — SG
