Dubai's luxury hotels are slashing prices and pushing staycations as Middle East travel chaos dents tourism

• Dubai hotels are advertising staycations and offering discounts as the Iran war impacts tourism.
• Some hotel nightly prices are estimated to have dropped by more than 50%.
• While staycations have always been a core offering, the drop in prices is drawing in some residents.

Dubai's glitzy hotels are slashing prices and pushing staycations to fill rooms.

With air travel limited and governments around the world advising their citizens not to travel to the UAE, hotels are offering staycation deals to ease the impact of lower international tourism.

The Jumeirah hotel chain, which operates the 5-star Jumeirah Beach Hotel and the iconic Jumeirah Burj Al Arab, among others, has been touting staycation offers on its Instagram stories this week.

These offers, specifically for UAE residents, include up to 30% off stays and perks such as 2-for-1 spa treatments. Outside these resident discounts, the cheapest rate for two adults at the Burj Al Arab is $905 this month, rising to $1,514 in April. The hotel chain did not respond to a request for comment.

Shangri-La Abu Dhabi, another 5-star hotel, also promoted its staycation deal on Wednesday, which included 15% off dining.

Address Beach Resort, a 5-star hotel based in JBR, said it's offering UAE residents up to 30% off to stay at its resort between March 5 and April 30. This month, the cheapest rate for two adults without residents' discounts is $320 a night at the resort. It jumps to $571 in the middle of April.

Roda Beach Resort, a 4-star hotel located in Jumeirah, said it has received "multiple extension requests" and requests for a "staycation for a lower price" within a day of posting its staycation offer on Tuesday. The resort said it is offering deals on its rooms starting at $108 over the next three weeks.

Hotels are cutting prices

The war in Iran has dealt a major blow to Dubai's hospitality industry. The conflict is estimated to be costing the Middle East at least $600 million per day in international visitor spending, according to research by the World Travel & Tourism Council.

For a prospective tourist, being unfazed by the conflict is only half the battle. Several airlines, including British Airways, Cathay Pacific, and Air Canada, have canceled flights to major hubs in the Middle East, including Dubai.

Though staycations have long been a core offering for many hotels in the UAE, price drops are likely drawing in some residents.

A website that launched on Sunday — "Hotel Drops Dubai" — is live-tracking pricing at dozens of four and five-star hotels in the city. According to its estimates, some of these hotels are discounted by nearly 60%, including the Al Khoory Atrium Hotel and the JW Marriott Marquis Hotel Dubai.

The UAE also recently announced it would move spring break forward by a week for schools and universities, making domestic getaways even more appealing to local families right now.

Poppy Johnson, a UAE resident and UK-born creative director for brands and businesses, said she booked a two-night Friday-to-Sunday stay at the Grand Hyatt using its GCC Residents Offer, which provides up to 20% off rooms, dining, and spa treatments, and complimentary breakfast and waterpark access.

It cost $114 per night for a king-size room, she said. She described the staycation as a much-needed "reset" after a disruptive 10 days.

"We wanted a bit of a reset" and a "change of scenery," she told Business Insider. "Breaking patterns from over the last 10 days. To feel like we're on holiday without having to get a flight."

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