A project of Dubai Holding's Tatweer, Bawadi is an ambitious initiative that will create 29,000 hotel rooms when completed in 2015. Arif Mubarak spoke to Gulf News about the emirate's tourism potential.
Gulf News: How is the project progressing?
Mubarak: It is proceeding according to plan. Completion of all phases of the project will be achieved by 2015. Phase one, which will be completed by 2010, will consist of three hotels.
The second phase will bring three more hotels to be completed in 2011. We will launch six hotels by 2011 and nine by 2012. By 2015 all 31 planned hotels will be completed.
Which international hotel chains have shown interest so far?
There will be a brand name and hotel operator for our own hotels. We are in negotiations with some operators. Other investors can partner with any operator because they will be running their own projects. Bawadi's total required investment is Dh100 billion, which has been divided into two parts.
One is Dh40 billion and has been allocated by Tatweer, our parent company. Of this, Dh30 billion will be spent on developing hotels, and the rest will be invested in building infrastructure for the whole Bawadi site.
The other Dh60 billion will come from private investors. These are mainly developers of the other 19 hotels. So far, we have launched four projects.
How would you describe Bawadi's overall character?
Bawadi is not copying anyone. Take the Holly Bolly Hotel for example, which will capture two major film industries in one destination. It is only in Dubai and in Bawadi that you will see such hotels.
Bawadi will have more than 100 entertainment show venues by 2015. It will have more than 1,200 restaurants and 20,000 hotels rooms, which means that will represent more than 20 per cent of hotels rooms in Dubai at that time.
We are allocating an entertainment area in each hotel, where facilities like an indoor arena or an amphitheatre can be built. These can hold musical shows, plays or Arabic shows.
What are your expectations for these hotels in terms of occupancy rates and revenues?
We believe Bawadi will be capturing a new market. We see it as a family destination. Based on the projected number of tourists, the increase in population and infrastructure that is being built in Dubai, there will be a high demand of hotel rooms.
There is a big need for four-star and three-star hotels that will cater to families coming from the GCC and other parts of the region. Fifty-five per cent of hotel rooms will be four-star, 25 per cent three-star and 20 per cent five-star.
