Hospitality and retail sectors see positive impact

Dubai: The retail and hospitality sectors will enjoy a boost in business with the launching of the "Eid in Dubai" festival by the Dubai Shopping Festival Office (DSFO).

Officials said that the initiative is timely and the festive mood of the occasion will bring further success to the economy.

"This is a great initiative bythe DSFO and a huge opportunity for the shopping component to grow exponentially. Eid has always been a festive season and for the government to promote and put more focus on this is going to attract more people and make the occasion more festive," Eisa Adam Ebrahim, chairman of the Dubai Shopping Malls Group and chairman and head of BurJuman, told Gulf News on Saturday.

He said that while people tend to be on a shopping high during the season, the initiative would attract shoppers to the malls due to the events and activities planned. "It will be easy for the retailers to convert the mall attendants into shoppers. I'm quite sure this is going to be a great success," Ebrahim said.

Pure Gold Jewellers chief executive and managing director Karim Merchant compares the success of the new festival to other initiatives. "Historically speaking, we have always experienced a very positive impact on our business by such government initiatives."

"Eid in Dubai' is at a very logical and appropriate time because during the Eid season, buying is at its highest," he said.

Meanwhile, hotels expressed mixed views. While some are sure of the success of the event, others said that it would take some time before the full potential of the Eid festival could become manifest.

"Turning a local festival into something that is internationally promoted has great potential," said Rene Egle, resident manager at the Shangri-la Hotel. However, he added that it could take a couple of years before the event is completely established.

He estimates that the ultimate potential of the seasonal event could be a five to 10 per cent increase in hotel occupancy rates.

Essam Nizam, acting general manager of the Metropolitan hotel, said that the impact of the event is not possible to gauge as it is only the first year. However, he said that preparations have been made.

"We are ready with special packages and additional benefits and are looking forward to welcoming the GCC guests."

With a 90 per cent occupancy rate in the Ramada Hotel at the moment, Dilip Wahgaye, the resident manager believes the hotel could reach full occupancy during the festival.

"The initiative will boost the image of Dubai and that of individual hotels," he said.