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Not so long ago Palm Jumeirah, Dubai Marina and Jumeirah Beach Residences were considered symbols of luxury vacations, but today these areas look unaccustomedly quiet, DailyMail writes. Five-star hotels are suspending operations en masse and some are closing indefinitely. Among them are iconic hotels including the St. Regis Dubai, The Palm and Armani Hotel Dubai in the Burj Khalifa skyscraper.
The sharp drop in demand is forcing businesses to mask the causes of the crisis: officially it is about “modernization”, but market participants admit that the main factor was fear of possible attacks. Even major tourist facilities such as Wild Wadi Waterpark and Dubai Parks and Resorts have temporarily stopped working.
Restaurants and beach clubs are trying to hold on through discounts and promotions, but the main clientele is now made up of locals. The tourist flow, which was supposed to exceed 20 million people a year, has virtually collapsed.
The worst effects of the crisis have affected migrant workers, who make up to 90% of the emirate’s population. In areas like Sonapur, home to low-wage South Asian workers, unemployment and social tensions are rising. People who have lost their income often cannot even afford to return home.
Human Rights Watch warns of growing risks to migrants, both economic and security. At the same time, the kafala system continues to restrict their ability to change jobs or leave the country.
Experts note that the recovery of the tourism sector depends directly on the de-escalation of the conflict. In the meantime, Dubai is experiencing one of the most serious crises in its modern history, and its hidden social side – the situation of millions of migrants – is becoming increasingly alarming.
