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Dubai aims to continue growth
The travel and tourism industry has signalled continued growth for 2008 even though it could be moderately affected by repercussions of the global credit crunch, according to industry business leaders.
- Staff Report
- Published: 00:41 January 23, 2008
- Visitors at the Dubai Museum. The Dubai Strategic Plan for 2015 has identified tourism as a leading catalyst for the emirate's economic development.
- Image Credit: Arshad Ali/Gulf News
Dubai: The travel and tourism industry has signalled continued growth for 2008 even though it could be moderately affected by repercussions of the global credit crunch, according to industry business leaders.
A recent research conducted by the World Travel and Tourism Council (WTTC) and Oxford Economics (OE) noted that the industry has entered the year on the back of another solid performance in 2007.
Jean-Claude Baumgarten, president of the WTTC, said: "Tourism growth has been particularly rapid in developing countries in 2007, with the fastest average growth in tourism arrivals in the Middle East region at 12.9 per cent, according to UNWTO.
"These countries are not only recognising the development potential of travel and tourism but their citizens are also seeing rapid economic growth which makes international travel a feasible and desired option."
Baumgarten's statement came at a media briefing yesterday during a flash visit to Dubai as part of preparations for the World Travel and Tourism Council Summit.
The event will be held in Dubai under the patronage of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in April.
Khalid Bin Sulayem, Director-General of the Dubai Department of Tourism and Commerce Marketing (DTCM), said: "A continued policy for tourism has helped Dubai's travel and tourism industry accelerate and this growth will also help it rise above a possible economic downturn."
On the global scale, international tourism arrivals increased last year by nearly six per cent, which adds up to nearly 900 million tourists, according to UNWTO.
This marked the fourth successive year in which arrivals growth exceeded its long-standing trend of four per cent.
The research developed by the WTTC and OE indicated that tourism spending per capita incomes has more than matched these increases. International air passenger traffic also rose 9.3 per cent year on year in November, according to IATA.
Nonetheless, the travel and tourism industry will face challenges in 2008. The deteriorating economic conditions are causing concern for the industry.
However, the slowdown is likely to have a limited impact owing to the growth of emerging markets and the easing of monetary policy by central banks.
Higher energy prices are a two-pronged challenge as they squeeze household budgets globally and raise the cost of a key input.
Baumgarten said rising oil revenues would give producing countries wider opportunities to boost their tourism investments.
Dubai Strategic Plan for 2015 has identified tourism as one of its leading catalysts for economic development. Dubai succeeded in promoting itself as a leading destination for regional and international tourists.
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