A new survey has found that half of the hotels and restaurants in Dubai may run out of business next month as Covid-19 pandemic continues to affect the hospitality business.
The survey was conducted by the Dubai Chamber of Commerce, reported CNBC.
It found that around half of the nearly half the restaurants and hotels may close in the next month alone.
Furthermore, around 74% of travel and tourism companies warned that they may close in the same time period. Around 30% of companies in transport, storage and communications may share the same fate.
The study surveyed 1,228 CEOs from various sectors between 16 April and 22 April.
Overall, 70% of businesses in Dubai may shut down within the next six months. Around 27% of the respondents opined that may shut down in a month, while 43% expect to run out of business within six months.
Later, a Dubai Chamber spokesman told CNBC: “Dubai Chamber surveyed 1228 out of 245,000 companies in Dubai in April when the lockdown measures were in the most strict phase … their sentiments were based on the expectation that the strictest lockdown phase would be prolonged.
“We anticipate that business confidence will improve significantly in the coming weeks and months as businesses return to more normal operation.”
The survey results come at a time when several hotels in Dubai are preparing to resume operations with new safety and hygiene measures.