|
Tourism in Dubai: The Sunrise Sector
B Rajesh Kumar
Associate Professor B Rajesh Kumar
Institute of Management Technology
P.O Box:- 345006.
Plot UG-02, DIAC, Dubai, UAE.
Mobile: 971502308202
Email: rajesh155_bk@yahoo.com
Tourism in Dubai: The Sunrise Sector
Tourism has become a popular global
leisure activity. In 2010, there were
over 940 million international tourist
arrivals, with a growth of 6.6% as
compared to 2009. International tourism
receipts grew to US $19 billion in
2010, corresponding to an increase
in real terms of 4.7%
Dubai has emerged as an important
tourist destination in the global
tourism map. The region has become
an epicenter of attraction for business
people, tourists and shoppers. The
statistics reveal the growing relevance
of the region. About 8.5 million tourists
had visited the region in 2010. There
was also an increase in hotel capacity
which remained at an average of 70%.
Cruising in the region is also experiencing
growth. Dubai had hosted 390,000 passengers
in 2010. The region expects 625,000
cruisers by 2015. Dubai cruise terminal
can host up to 7000 passengers and
3 ships at one time. The number of
tourist guests increased by approximately
10% in 2010 compared to the previous
year.
| Type |
Number
of Hotels
|
Rooms
|
| 5
star |
62
|
20144
|
| 4
star |
72
|
13744
|
| 3
star |
61
|
7914
|
| 2
star |
51
|
5273
|
| 1
star |
122
|
4689
|
| Deluxe
Hotel Apartments |
55
|
7584
|
| Standard
Hotel Apartments |
132
|
13960
|
Source: www.dubaitourism.ae,
Department of Tourism and Commerce Marketing
Table 1: Five Star hotels in Dubai -2011
Statistics
Currently there are 555 hotels of various
types in Dubai of which 62 belong to
five star categories. In 2011, approximately
159 conferences and exhibitions were
held in Dubai of which approximately
79 were held in the Dubai World Trade
Centre. 15 were held in DICC. This year
there were 19 cultural and festival
shows in Dubai. The region accounted
for 66 sporting events which included
camel and horse races. There are 43
shopping centers in Dubai. There are
over 63 overland safari companies operating
in Dubai. 85 embassies are located in
UAE.
In 2010, the United Kingdom, India,
Iran, Saudi Arabia and the United States
became the top five source markets for
Dubai's tourism industry.
The revival of the sector could be attributed
to various factors. The market has witnessed
correction with the emergence of budget
airlines and budget hotels in the region
that has helped balance the tourist
mix. The growth has been to a great
extent driven mostly by tourists from
the GCC, China and the MICE (Meetings,
Incentives, Conventions and Exhibitions)
sectors.
The revival in tourism which has significantly
contributed to Dubai's economic recovery
can be attributed to the initiatives
taken jointly by Department of Tourism
and Commerce Marketing, Emirates Airlines
and the Tourism industry. One of the
major reasons for a boom in tourism
could be attributed to a massive tourism
campaign in the overseas media particularly
through world television channels. Their
road shows and various programs like
"kids go free" have generated
more demand for the market.
The significant tourist inflow has become
a significant part of the local economy.
Tourism contributes about to 11.6% of
Dubai's GDP. The region has emerged
as a regional tourism hub and it can
be stated that leisure has surpassed
business as a primary motive for visitors.
Dubai has also emerged as an international
sporting venue.
The cruise industry has boosted the
inbound tourism by bringing in a new
segment of holiday makers into Dubai.
Geographically Dubai is well positioned
as a cruise destination with its tourism
infrastructure facilitated by an excellent
flight network from around the world.
Factors critical to tourism destination
development include stability in socio
economic and political domain, the government
tourism policy, accessibility, amenities
and attractions. Dubai scores well on
all these aspects.
Dubai acts as a regional entrepot and
promotes itself as the commercial and
financial nexus of the Gulf region which
is clear from the initiatives undertaken
to develop free trade zones and industrial
parks. Dubai is seen as a comparatively
liberal and cosmopolitan society with
80 % expatriate population. Dubai can
count on as being one of the safest
cities in the world.
Government has a key role in initiating
and sustaining tourism. With respect
to tourism policy of the government,
tourism was positioned at the centre
of the diversi?cation programme alongside
construction.
With respect to accessibility, the growth
of tourism is closely tied to the advances
in transport and easy access by air
which is a prerequisite for any country
to emerge as a leading international
destination. Dubai has focused on developing
the region as the strategic air transport
hub for the Middle East and Far East.
Dubai also markets itself as a cruising
hub and destination on lines of the
Singapore model offering tough competition
to the crowded Caribbean and Mediterranean
region. Dubai has positioned itself
in Western markets as an exotic but
safe beach tourism location with diversions
of shopping and assorted culture and
natural heritage attractions. More focus
ought to be on developing the cultural
leisure experience in the context of
natural and cultural heritage attractions.
In the context of promotion, Dubai's
attractions and amenities are facets
of the destination brand communicated
in a number of marketing exercises.
The region has indeed benefitted from
active tourism promotion around the
world. Dubai's attractions centre on
its 64 km coastline and resort hotels.
Events are presented and packaged as
attractions.
Challenges ahead
The tourism industry in Dubai faces
the challenge of rising cost of its
hotels. The decline of the euro and
the pound against the dollar would
put pressure on Dubai's tourism as
dirham is pegged against dollar. Dubai's
attraction as a tourist destination
may decrease on account of high costs
especially for travelers who come
along with the whole family. Dubai
also faces competition from less expensive
destinations such as Lebanon and Egypt
.Qatar is also gaining prominence
in the tourism map.
Dubai market is yet to capture significantly
the thriving health tourism market
of Asia. With rising health care costs,
medical tourism has become a booming
industry especially in Asia. Countries
such as India, Thailand and Singapore
offer medical care for just 10% of
the price that it would cost for similar
procedures in the US. The challenges
faced by this sector include quality
and cost considerations. Despite the
rising number of hospitals with accreditations,
still UAE has to go a long way to
establish its reputation as a cost
effective and safe destination for
medical treatment. In this context
it is noteworthy to point to the collaboration
that Emirates have established with
Harvard Medical School to operate
Dubai Healthcare city is in the right
direction.
Dubai's tourism is also hampered by
the fact that it offers few mid priced
hotels. Now the focus of high rolling
tourists have shifted towards all
inclusive packages.
The demand for business and leisure
travel is affected by economic movements
and eroded by political instability.
The economic recession in 2008 amply
demonstrates this fact with respect
to the case of tourism in the region.
At the same time, the political instability
due to the uprisings of the Arab Spring
in many parts of the Middle East will
act as a catalyst in enhancing the
image of Dubai as a world class tourist
destination.
Dubai faces competition from established
competitors such as Australia, the
Caribbean, Malaysia, Maldives, Mauritius,
Seychelles, South Africa, the Canary
Islands, Thailand and Turkey.
It has been often stated that there
are opportunity costs and financial
risks associated with more emphasis
on tourism. Tourism is partly responsible
for the unprecedented construction
and real estate bubble in Dubai. Excessive
expansionist tourism programmes have
negative ramifications. It could adversely
affect bird sanctuaries and nature
reserves with rich ecosystems.
The Jumeirah Coast constitutes about
half the total coastline and is intensively
occupied by both residents and tourists.
It has the most popular beaches and
numerous hotels, water sport centers,
parks. Population growth and growing
tourism industry may upset the delicate
ecological balance of the region which
will lead to increased erosion of
coastlines and pollution. At the same
time it is noteworthy to point that
legislation exists in an endeavor
to safeguard protected zones. Road
traffic has increased exponentially
resulting in congestion and atmospheric
pollution.
Overall the success of Dubai becomes
a classical case of providing insights
of how a state with an imperfect supply
of conventional natural and cultural
attractions emerged as one of the
best international tourist destination.
|
