Over the past couple of years, regional conflicts and economic concerns might have put tourism in other Middle Eastern countries at risk, but the UAE has remained one of the top global destinations for holidaymakers. True to its diversification goals, tourism is one of the UAE’s fastest-growing industries in the post-oil economy.
Last year, the sector accounted for nearly 9 per cent (Dh134 billion) of total GDP. According to the World Travel and Tourism Council, it is expected to rise at a rate of 5.4 per cent annually over the next ten years to reach Dh236 billion.
With a steady growth in international visitors at 7 per cent annually, not only does tourism support the country’s large retail and hospitality sectors but it will account for about 420,000 jobs directly by 2025.
Innovative offerings
“The UAE has been sharpening its focus on further enhancing its tourism sector,” said Sultan Bin Saeed Al Mansouri, UAE Minister of Economy, in a statement while announcing the plan to host last month’s Tourism Innovation and Transformation Forum in Dubai, “Maximum effort is being exerted to develop this vital sector through a national tourism strategy, which aims to harness innovation to improve the rich and varied touristic elements of the UAE.”
Despite concerns over a slowdown in foreign visitor spending this year, Dubai, which is expected to receive 15.27 million visitors, was ranked fourth-most popular travel destination in the world and number one in the Middle East.
According to the latest MasterCard Global Destination Cities Index, Dubai made a quantum leap to become the top-ranked in visitor spending globally, with $31.3 billion (Dh114.9 billion) this year, far exceeding London’s estimated $19.8 billion, which comes second.
The strong growth in inbound tourism in Dubai is expected to continue until Expo 2020, which is set to add Dh88 billion to the emirate’s GDP. Holidaymakers from the UK, followed by Saudi Arabia and India, lead the tables in arrivals to Dubai, as it makes steady progress towards the target of 20 million visitors a year by 2020.
“The concerted efforts of Dubai government to continually evolve the emirate’s transport and logistics infrastructure via committed investments for capacity expansion through to 2020, coupled with Dubai Tourism’s enablement of various tourism assets, ranging from theme parks and cultural districts to specialised event venues and entertainment offerings, have laid stable foundations to systematically grow visitation volumes to the city in line with 2020 targets,” says Issam Kazim, CEO of Dubai’s Corporation for Tourism and Commerce Marketing at Dubai Tourism (DCTCM).
“Dubai’s destination offering, accessibility and connectivity are constantly being enhanced. New projects such as Dubai Opera, IMG Worlds of Adventures and Dubai Parks and Resorts enhance the emirate’s global appeal, drawing visitors from both near and far.”
While Dubai, with events, billion-dollar theme parks and endless malls, gets a lot of attention, Abu Dhabi, in recent years, has become a popular destination too. Grabbing international limelight as the third-fastest-growing city in the world, with a growth rate of 19.81 per cent, according to the MasterCard report, Abu Dhabi increased its target for tourist arrivals to 4.1 million from 3.5 million. Home to the largest mosque in the world, Formula 1 track and the only Ferrari park in world, the capital’s landmarks have featured as filming locations for many Hollywood and Bollywood films, including Fast and Furious 7, Star Wars: The Force Awakens and Dishoom.
Also, Ras Al Khaimah, touted as the Ibiza of the Gulf, is seeing a rapid growth in international tourism. The overall visitor numbers is growing by 7.2 per cent year-on-year.
“This is higher than the global average of 4 per cent. The regional average is about 3.2 per cent,” says Haitham Mattar, Chief Executive of Ras Al Khaimah Tourism Development Authority.
The northern emirate is targeting a million visitors by 2018. According to insiders, part of its strategy to reach this goal is to sell these destinations on their proximity to Dubai — visitors can enjoy the relaxing, atmosphere of the quieter emirates yet reach Dubai’s hustle and bustle in less than an hour.
Sustainable tourism
Hailed as a sustainable economic driver and a force for environmental conservation, ecotourism is also gaining traction in the country. Sir Bani Yas, home to more than three million different trees and six mangrove forests, and Liwa, with towering dunes, date palm plantations and natural springs, are pushing towards environmentally responsible travel.
In September, the DTCM partnered with four locally based environmental entities to kick-start the Dubai Sustainable Tourism Initiative (DSTI).
“In a country like the UAE, where tourism is a big industry, Dubai Tourism has placed strong emphasis on environmental conservation and sustainable development within the tourism sector,” says Habiba Al Marashi, Chairperson of Emirates Environmental Group.
“We will work proactively towards promoting sustainable consumption of resources and protection of the environment by creating best practices among the hospitality industry.”
Inevitably, managing dramatic growth in tourism has necessitated effective development of hospitality skills. To this end, DTCM has taken various initiatives, including a two-year national development programme for Emiratis to build their careers in tourism industry and Key Talent Programme to develop leadership skills of nationals.
“To attract 20 million visitors by 2020, there is huge demand for qualified Emirati nationals in the industry,” Helal Saeed Al Merri, Director-General of Dubai Tourism, said at Careers UAE 2016. “Our strategy this year is to further enhance efforts to recruit and develop these future ambassadors for Dubai and provide them a clear career path towards becoming tourism leaders.”
A UAE Hospitality Federation was also set up to develop skills and capabilities in the hospitality and culinary sectors. Apart from the Emirates Academy of Hospitality Management in Dubai and the European International College in Abu Dhabi, there’s a plan to develop the Dubai College of Hospitality Training to provide certification across a variety of hospitality-based jobs, from event management to taxi driving etiquette and equestrian training.
Hospitality gains
There are also reports of a jump in hospitality revenues. Figures released by Alpen Capital reveal income from the hospitality sector is expected to reach $9.8 billion by 2020. The UAE room count from hotels and hotel apartments should rise by 8.3 per cent in the next four years to touch 191,260, up from 150,393 this year.
“Government measures to bolster tourism activities by encouraging private sector investments, building new attractions, expanding airport capacity, and increasing international promotion campaigns are providing impetus to the growth of the hospitality sector,” says Sameena Ahmad, Managing Director — Corporate Affairs at Alpen Capital.
Expanding its visitor base, the country, known for its five-star hotels, is also working to grow in the affordable market, with various schemes and incentives. Emaar Hospitality Group plans to roll out ten Rove Hotel properties by 2020 for budget travellers.
The holiday home sector has also emerged as a new segment, with more than 1,800 units across Dubai. The emirate has also responded to the rise in home-sharing apps with steps to regulate that market.
Although spending by visitors to the UAE slowed down to 3.3 per cent, according to the WTTC, the government’s spending on travel and tourism development is expected to grow by 4.3 per cent over the next decade, to maintain the upward trend in tourist arrivals.
