Tourism
From The Report: Dubai 2013
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Since 2008 Dubai’s tourism sector has once again become a major economic contributor, following a downturn in the global economic crisis. In 2011 the industry attracted more than 9.3m tourists – up about 10% from the previous year – and contributed some 31% of the emirate’s total GDP. In the last couple of years political upheaval in the region has seen visitor numbers to popular tourist destinations in Egypt and Tunisia fall, with tourists instead favouring more stable destinations such as Dubai. Moreover, key segments such as local malls and other retail destinations have performed well, seeing an estimated 10% jump in spending. Indeed, shoppers from outside the UAE accounted for nearly 40% of the revenues local retailers brought in during the 2011 Dubai Shopping Festival. While challenges remain – including increasing competition from a number of other cities and countries in the region – if Dubai can maintain its current momentum, the emirate is well positioned to continue its reign as one of the world’s most popular and profitable tourism destinations for years to come. This chapter includes interviews with Helal Almarri, CEO, Dubai World Trade Centre; and Gerald Lawless, President and Group CEO, Jumeirah Group.

Articles from this Chapter

Overview

Well positioned: After years of investment and planning, the sector is back on top
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Since 2008 Dubai’s tourism sector has once again become a major economic contributor, following a downturn in the global economic crisis. In 2011 the industry attracted more than 9.3m tourists – up about 10% from the previous year – and contributed some 31% of the emirate’s total GDP, according to data from the Department of Tourism and Commerce Marketing (DTCM), the government’s tourism arm. Other estimates for 2011 tourism numbers were lower, with Mastercard suggesting 7.9m visitors…

Analysis

Safe haven: Regional strife has resulted in increased tourist activity in the emirate
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The political unrest that swept through the Middle East and North Africa since late 2010 has had a deleterious economic effect on many countries in the region. The uprisings – known collectively as the “Arab Spring” – have overturned longstanding governments in Tunisia, Libya, Egypt and Yemen, and caused prolonged periods of instability in a handful of other countries. At the same time, the protests have created pockets of potential throughout the region. The major oil- and gas-producing…

Analysis

Wealth from health: The medical tourism segment is getting major support
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New visa regulations designed to allow foreign visitors undergoing medical treatment to stay for up to nine months are expected to reinforce Dubai’s appeal as a health tourism destination, and are part of a plan to build further on an already-developed industry. BIG CONTRIBUTOR: Health tourism is currently a major contributor to the Dubai economy, with initial official estimates putting direct and indirect revenue from the segment at $1.6bn in 2012. Given that finalised direct earnings from…

Interview

OBG talks to Helal Almarri, CEO, Dubai World Trade Centre (DWTC)
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Interview: Helal Almarri What impact has the exhibitions and conferences industry had on the greater economy? What needs to be done to ensure sustainable growth? HELAL ALMARRI: It is difficult to gauge the full impact of the exhibitions and conferences industry on the overall economy, but studies indicate that for every Dh1m ($272,000) spent in the exhibitions and conferences sector, five new jobs are created in Dubai. In 2011 DWTC contributed Dh6.5bn ($1.8bn) to the overall economy, equivalent…

Analysis

Taking to the seas: The nascent cruise industry is poised to become a major contributor
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While cruise tourism is a relatively new market in Dubai – the government has promoted the segment only since 2001 – over the course of the past decade the emirate has become one of the region’s busiest stop-offs for cruise liners from around the world. In 2011 the cruise terminal at Dubai’s Port Rashid welcomed 108 cruise ships, up from 103 ships in 2010 and just 87 ships in 2009, according to data from the Department of Tourism and Commerce Marketing (DTCM), the emirate’s tourism…

Analysis

Coming to market: A slew of new hotels are expected to open over the next several years
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In the four years since the 2008-09 economic downturn swept the world, Dubai’s hotel industry has experienced substantial volatility. Occupancy and revenue per available room (RevPAR) rates dropped substantially in the wake of the crisis, especially at high-end luxury properties, as wealthy leisure tourists made an effort to reduce their discretionary spending across the board. Developers and real estate investors ducked their heads to wait out the crisis, and many new hotel projects – in…

Interview

OBG talks to Gerald Lawless, President and Group CEO, Jumeirah Group
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Interview: Gerald Lawless In light of this period of global economic uncertainty, what should be the focus in order for stakeholders to ensure sustainable growth in Dubai? GERALD LAWLESS: The travel and tourism segments provide jobs for roughly 9% of the world’s labour force, while representing almost 10% of the world’s GDP. The tourism sector in Dubai contributes to 15% to the UAE’s GDP. This is almost equivalent to the contribution of the industrial sector, and it supersedes the contributions…

Analysis

Low prices, big impact: A new focus on affordability bodes well for future revenues
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When the global economic downturn hit Dubai’s tourism sector in 2008-09, the luxury segment, in particular, suffered substantial losses. The emirate’s extravagant high-end hotels, many of which commanded room rates in excess of $1000 per night prior to the crisis, were forced to lower their prices substantially to maintain occupancy rates, for example. Similar cutbacks resulted in airlines lowering the price of first-class tickets to Dubai, lower costs at some luxury retailers and a number…

Analysis

On your marks: High-profile sporting events are a major draw
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In early March 2012 the Dubai Sports Council (DSC) signed a memorandum of understanding (MoU) with the Department of Tourism and Commerce Marketing (DTCM). The agreement formalised the longstanding collaborative relationship between the government’s tourism and sports development arms, and is expected to result in increased cooperation between the two entities and private sector players in the foreseeable future. The MoU also highlights Dubai’s status as a centre for sporting events of all…