Lured by the UAE's status as a global air travel hub, year-round sunshine and a robust business travel market, global hotel brands have capitalised on the country's rapid growth. Buoyed by the success of international operators, hospitality brands from Asia and the Far East are now also trying to get a piece of the action.
One brand leading the charge is Anantara, which — in partnership with TDIC — launched the Desert Islands Resort & Spa on Abu Dhabi's Sir Bani Yas Island in 2008 and Qasr Al Sarab Desert Resort in 2009.
Peter Carmichael, senior vice president of Anantara, says the Middle East was long viewed as a key market. "As a company we were proactively looking for the right partner to make the brand's entry into the region. We are always seeking new and exciting destinations. When the opportunity to partner with TDIC came about to launch our first property in the Middle East, Desert Islands Resort & Spa… we felt there was a connection — the destination offered all the attributes we look at for our properties."
Anantara earmarked the region as a development market, he says. "When the opportunity to partner with TDIC came up we felt great synergy. Their vision to open two resorts, born out of the 2030 vision of Abu Dhabi's leaders in which culture and environment are two main pillars, met the criteria we look for.
"In the first year of opening we targeted UAE residents for ‘stay-cations' and weekend getaways. This included both UAE nationals, Western and Arab expats. Our secondary markets are the GCC and Levant countries as well as international markets such as Germany, the UK, France and Italy. Since the opening of Desert Islands Resort & Spa, we have seen an increase in visitors from outside the region, as we focus our marketing efforts on international markets."
While the resorts have Arabic themes and designs, elements of Asian-style hospitality remain, such as Thai spas and experienced personnel from its many properties in the Far East.
Carmichael says Anantara is hoping to expand in the region and is planning to open two more lodges and a conference centre on Sir Bani Yas Island with TDIC, and the Anantara Al Madina A'Zarqa Resort & Spa in Oman, a 122-room property 40 minutes from Muscat's Seeb International Airport.
Leisure properties
Also targeting the leisure market is the Asian brand, Banyan Tree Hotels & Resorts, which launched its Al Wadi desert property in Ras Al Khaimah this year. Pascal Eppink, general manager of Banyan Tree Al Wadi, says the resort is part of a strategy to bring Asian-style hospitality closer to Middle East and the European markets. "The Middle East has become a destination in its own right and for guests who enjoy Asian-style hospitality this is now available closer to home without the need to travel further. The region presents many good prospects and a potential demand for the hospitality concept of Banyan Tree Hotels & Resorts."
Situated in a desert area close to the Arabian Gulf, the resort's location enables it to provide a raft of activities that appeal to leisure and adventure travel markets, including desert drives, dune buggy rides, horse-riding, golf, sailing, scuba diving and fishing.
Eppink believes Ras Al Khaimah has great potential for growth "as seen in the numerous major upcoming tourism developments, including Marjan Island and Dana Island, both which feature residential, leisure and hospitality projects."
The resort includes desert and beach villas, a children's club, the UAE's first hydrothermal spa circuit plus 3,000 square feet of conference, meeting and reception space. Eppink says Banyan Tree Al Wadi occupies a unique niche, due to its location and facilities. "There are no other resorts in this region that can offer desert, beach, golf and nature reserve experiences all bundled into one package."
The resort is patronised by UAE nationals, GCC expats and Europeans, the company's traditional base market.
"We are also targeting markets from areas still relatively unknown to the Middle East but in which we have strong foothold as a company, such as Korea and Japan."
Banyan Tree has hotels under development in Oman, Abu Dhabi and Cairo and is also negotiating other opportunities in the region.
City hotels
Asian companies have also shown an interest in urban properties, including India's Oberoi group and JAL Hotels. With the Hotel JAL Fujairah Resort & Spa already in Dibba, the Japanese company is set to launch the Hotel JAL Tower Dubai later this year.
The 51-storey, 471-room property will be located across Shaikh Zayed Road from the Dubai International Financial Centre (DIFC) and within walking distance of the Financial Centre Metro Station. With bed nights assured from its mother company, Japan Airlines, it will include restaurants, a health club, rooftop swimming pools, a business centre and meeting facilities, while the tower will house the Japanese Consulate General.
Laurent Rigaud, general manager of the Hotel JAL Tower Dubai, says the hotel's location and facilities will help it target both the business and leisure markets. "The potential target markets for the upcoming Hotel JAL Tower Dubai would be corporate and leisure travellers from the different feeder markets — local, GCC, and the international market.
"The Middle East market has always been one of the most targeted markets for brand expansion, thanks to its potential as a region for investment, brand presence and expansion. On a specific level, the UAE has definitely proved to be one of the countries with the highest potential in the region."
The Hotel JAL Tower Dubai is part of a wider strategy to establish JAL hotels throughout the region, including a resort in Bahrain, which is planned to be completed in either 2010 or 2011.
Anantara hasn't ruled out a hotel in Dubai city either. "Dubai offers much more than just a big city and if the chance to work with a suitable partner comes up we will certainly consider opening an Anantara resort," says Carmichael.
Market outlook
Confidence is returning to the region's tourism market, says Carmichael. "Although tourism and hospitality were affected in 2009, domestic travel allowed the UAE to remain strong and will show signs of recovery towards the end of the year. We are seeing a change in consumer confidence in 2010 as we slowly recover from the economic crisis with global tourism on the up.
"Dubai is already established as a global hub for business and leisure travel and Abu Dhabi is quickly catching up thanks to burgeoning MICE (meetings, incentives, conventions and exhibitions) segment, increase in hotel guests, new hotel inventory and the airport extension. With the increased demand in Abu Dhabi we felt it was a good time to move into the market."
Eppink says the long-term prospects of hospitality are positive. "The UAE is recovering fast from the global economic downturn and the country has a lot to offer. Being strategically placed just six hours away from most European destinations, this makes it extremely accessible. With travellers spoilt for choice with the numerous hotel and entertainment offerings, and with more developments in the pipeline, I see the tourism industry growing even more."