Changing Trends of Tourism Industry in Dubai

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An industry wide analysis of the Tourism sector in Dubai. The aim was to explore the major influencing factors that attracted visitors to Dubai and to understand Dubai’s success as a tourist …

An industry wide analysis of the Tourism sector in Dubai. The aim was to explore the major influencing factors that attracted visitors to Dubai and to understand Dubai’s success as a tourist destination in the Middle East and across the world.

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  • Add mastercard data if not covered laterAlso included is the affinity for Travel & Tourism, which measures the extent to which a country and society are open to tourism and foreign visitors. It is clear that the general openness of the population to travel and to foreign visitors has an important impact on T&T competitiveness. In particular, we provide a measure of the national population’s attitude toward foreign travelers; a measure of the extent to which business leaders are willing to recommend leisure travel in their countries to important business contacts; and ameasure of tourism openness (tourism expenditures and receipts as a percentage of GDP), which provides a sense of the importance of tourism relative to the country’s overall size.
  • Add mastercard data if not covered laterAlso included is the affinity for Travel & Tourism, which measures the extent to which a country and society are open to tourism and foreign visitors. It is clear that the general openness of the population to travel and to foreign visitors has an important impact on T&T competitiveness. In particular, we provide a measure of the national population’s attitude toward foreign travelers; a measure of the extent to which business leaders are willing to recommend leisure travel in their countries to important business contacts; and ameasure of tourism openness (tourism expenditures and receipts as a percentage of GDP), which provides a sense of the importance of tourism relative to the country’s overall size.
  • which started with the building of model luxury destination hotels like the Burj Al Arab and the Jumeirah Beach Hotel to inspire other hoteliers –  continued with the provision of world class aviation services and more recently a low cost carrier  – and has now progressed to the actual creation of new tourist attraction assets such as the new resorts of the  Palm Islands – and the World Islands – and Dubailand.Current GDP of dubaiMain attractions for dubai tourism
  • Why occupancy saw spikes and lows
  • Why the sudden growth explain
  • No. of guests is on the increase – dynamics of diff contributing regions has changed. Asians and gcc are contributing more than Europeans. Post recession change in these dynamics were seen. Explained more by nationality wise breakup. Also explain why surge was seen 2002 onwards. All due to previous road shows etc being continuously done by DTCM.
  • Avg. stay at hotel increased to 3.1 - reasons
  • Avg rate for rooms – off season and peak seasonDereived from previous two slides. Increasing trend.
  • Asia - As of 2010, 2nd highest avg. length of stay at 2.8 days. Americas - Contributes to 7.7% of total guests. Contributes to 5.3% of total
  • DWC5 parallel runways, 4.5km 4 passenger terminalsLocated in the vicinity of the Jebel Ali Port and Free Zone, DWC will make air-sea connectivity achievable in four hoursCosts for the entire DWC development (including all clusters) has been estimated in excess of US$ 32 billion (approx. AED 120 billion).
  • Dubai Events and Promotions (DEPE)DED – Dept. of Economic DevelopmentModhesh – yellow maggot
  • Started 35 years back by one man (82 years old). They hired people from Ireland (who had done the duty free work in Ireland) and made Dubai duty free possible, with DDF being the worlds single largest airport retailer.It has toppled Seoul and Heathrow and then toppled Africa and Kenya.Chocolates and Perfumes are consumed the largest in DDF.
  • FIT – free independent traveller / free independent tourist
  • ITB – international Travel Board
  • DTCM released the first edition of the Special Needs brochure for the wheelchair-bound physically challenged informing them about the accessible tourism services and facilities in Dubaitips and information on how to obtain a driving license, special equipment, medical and hospital facilitiesDTCM also has a Special Needs Tourism Task Force in place which works round the year to better understand the sensitivities related to special needs tourism and to constantly work towards making their travel smoother.Hotels, Airports, Transportation, parks, tours, heritage sites, cinemas, public facilities, airlines, shopping malls, travel agencies are gearing themselves to become disabled-friendly for moral, ethical and financial reasons.Green Tourism aims to encourage efficient use of resources, reduction in Co2 emissions, energy conservation and to spread environmental awareness and to create a statistical environmental model for hotels that track scale of energy consumption and improvements. UAE's Green Economy Initiative has six tracks through which it intends to promote environmental healthy practices. The Jebel Ali Resort & Spa uses recycled water to irrigate the hotel's landscape, gardens and golf course through their onsite treatment plant. The resort also house a desalination plant. Solar water heaters are also used to conserve energy.DTCM has introduced the Dubai Green Tourism Awards with the aim of promoting positive, action-oriented approach to the environment.
  • Due to the terrorist attacks of Sept 2001 in USA, Dubai had started marketing itself on a global scale in 2001-2002  it was a reputation building campaign as a safe tourist destination. - it started growing into new markets. - hence the after result was a sudden spurt of new hotels in 2004.After 9/11 attacks , the ‘2001-2003’period changed everything in the tourism sector of Dubai. Dubai reinvented itself. Before it was known to be most expensive and luxurious haven for the rich. After this period, it started projecting itself as an affordable place or all.Real boom in tourism for Dubai came in 2003.What Malaysia, Singapore, Scotland had done Dubai did the same thing to promote tourism i.e promoting the destination on a large scale globally. Dubai wanted to build a brand identity as a global leisure tourist destination.It had the effect of opening up of new markets , not explored before. i.e. tourists from various countries started visiting Dubai. Huge numbers came from UK. From 2003, new countries started entering Dubai.
  • Played a major role in promoting TourismThey organized Road shows, sales trips etc.  Destination MarketingEmirates Airlines  did destination marketing for Dubai even before DTCM.They organized familiarization trips in 2002 (to promote Dubai as a safe destination after the 9/11 attacks ). These trips were free for the tour operators and tourism bureaus of other countries to market Dubai as a prominent tourist destination.DTCM supported this. Various organizations and groups in Dubai connected and worked together to promote Dubai. Even Etihad airlines came into the picture.Brussels market opened  which opened up the connected European market as well (Luxembourg) . Upto 2 million people/year came from this area to Dubai.Copenhagen market opened up (which simultaneously opened up the Scandinavian market).After Sept 2001, the demographics of the visitors changed
  • People who come to Dubai for business purpose, also take up Tourist visa. Therefore there is a vast difference in the statistics presented by the Visa and airport authority and the statistics shown by the hotel authorities. There is no system in check.In 2010, there were some 1,00,000 Nigerian tourists which bombarded Dubai all of a sudden  people speculate that they came for shopping purposes but no-one can be sure.MICE tourism  happening all around the year. Around 3 events/day happen in Dubai.Business visitors to Dubai for MICE purposes don’t take a Business/work visa since it is too Hassle free. They end up taking a Tourist visa, which skews up the statistics more. Since you don’t know what percentage of visitors are actually tourists or people with only business purpose.Again, there is no strict distinction between tourist and other visa , and hence between tourist and Visitor.Everybody abuses the ‘Tourist’ visa, since business visa is difficult to acquire. There is no tracking system and there is no attempt to do so. And to come to look at it, it is not required also. The word ‘tourist’ is misleading. It is anyway good for the Dubai economy.
  • People from neighbouring Emirates and countries visit Dubai-creates self-sufficiency for Dubai. It is a healthy sign since even in an economic turmoil or global crisis or any other adverse global event, Dubai won’t have to rely on the rest of the world to generate revenues in Tourism. Dubai is surrounded by rich countries and Emirates , and hence it can be self-reliant in this regard.
  • Israel Bombing, Egypt uprising, Tehran etc.  People send their families and kids to Dubai since it is considered it is, a safe tourist destination. Dubai has had a positive impact overall due to Arab spring."In the beginning of 2011, the north Africa and arab region saw a series of upheavels and instability due to unemployment and rising food price issues.Dubai has remained safe from this instability and hence has benefitted a lot from the unrest which rocked north Africa and Middle east.Dubais tourism industry suffered in the second half of 2009 and the first half of 2010. Hotel Occupancy rates and ADR rates fell to an all time low, with many projects getting cancelled and postponed due to recession and downward economic condition.Countries like Qatar have become increasingly geared up to compete with Dubai on the regional scale. Dubai’s brand new identity, coupled with initiatives like ‘Definitely Dubai’ have started capitalizing on the traditional culture of dubai to market the destination. More than 80% of the residents of Dubai are expats and they directly or indirectly contribute to inbound, domestic or outbound travel markets.
  • There is a scarcity of public beaches in Dubai. If 1 % of the total population decides to use the public Jumeirah beach on any given single day simultaneously, they won’t be able to do so, since there is not enough beach available. Even the hotels located in the city (city hotels with no beach property) have facilities for their guests which take them in a pre arranged bus to hotels with beach fronts (these hotels have tie ups with the beach facing ones), drops them at the beach and collects them later. However even these arrangements between beach hotels and city hotels are not happening anymore due to logistics and other issues.
  • Real Estate : After the real estate bust in 2008-2009, it intends to lift up now in a marginal way. There are half completed buildings. There are around 430 projects half completed. Real estate prices will continue to go down for a few more years. Government will have to demolish them at some point of time. Investors will not be ready to touch these dead buildings and projects. (rust an corrosion etc. sets in)
  • Dubai – In 1999, IBN, around 400 tourists. Guests were expected to visit Dubai. There was a lack of hotel apartment to put up with 4000 guests. They were put up in JW Marriot. Out of them were 16 Israelis, who were given special treatment with armed bodyguards and vehicles following them all around. One whole floor was given to them especially.Everybody (all the government agencies and other private organizations) joined hands to get this done. Qatar doesn’t do this. They don’t collaborate.Abu Dhabi is more diverse it can compete with Dubai.
  • Mirdiff city center to conserve energy , they have positioned their walls and whole structure in a particular way so that in the daytime , no lights are required.There is certification process by Dubai Municipality.Chamber of Commerce has taken some Sustainable Tourism initiatives.
  • Even though Dubai promotes Open Skies policy (to ensure sufficient competition in the logistics cluster), competition between shopping and tourism sector is still low.Emirates Airlines and FlyDubai, both government owned, still control 62% of the Dubai Airport.Emaar Malls, another government owned entity controls 49% of the retail space in Dubai.Only the Hotel sector is competitive, with 47 international brands present despite Jumeirah Group’s prominence.
  • DTCM has led the international efforts to promote Dubai’s tourism sector.However little has ben done by DTCM to promote broad based collaboration by the players in the Tourism sector.Efforts of DTCM domestically : 1996 : Dubai Shopping Festival 2001 : The Summer Suprises 2009 : Keep Discovering Dubai campaign 2010 : Definitely Dubai CampaignThe earlier campaigns did little to demonstrate the need for collaboration amongst the players as the demand was growing., but the drop in demand during the world economic crisis has increased the necessity to work together.
  • The financial crisis of 2008 and the overall global economic slowdown impacted the number of tourists entering Dubai. The pace has picked up recently, but still the threat of global recession looms large on the heads of the retailers and the tourists alike.Dubais tourism industry suffered in the second half of 2009 and the first half of 2010. Hotel Occupancy rates and ADR rates fell to an all time low, with many projects getting cancelled and postponed due to recession and downward economic condition.The dirham is pegged against the dollar, the decline of euro and pound against the dollar would put pressure on the tourism industry in Dubai.
  • Impact of lenient tourist visa rules in neighboring countries like Qatar on Dubai.Dubai has a stiff competition to tackle due to the lenient visa rules in neighboring countries like Qatar. It has to make the visa and immigration rules more tourist friendly in order to attract and retain the tourist population.
  • Tourism has been partly responsible for the real estate bubble and the unprecedented construction. Dubai's extensive diversification and tourism program can negatively affect the bird sanctuaries and eco reserves. The Jumeriah coastline constitutes to about half of the total coastline of Dubai, with many tourists and UAE nationals occupying the coastline. The population growth might upset the delicate ecological balance of the region and increased erosion of the coastline.Due to unrestricted construction and man made islands in and around Dubai, the flow of water around these islands has got disturbed.  erosion of Jumeirah beach.
  • Dubai faces the challenge of rising costs of its hotels.The emirate ranked highest globally in terms of average room rate in October, with an average of $375 during the month, according to a report by STR Global.To lure travellers some hotels in the emirate have begun offering special packages and discounts of 30% or more.The decline of the euro and the pound against the dollar is also putting pressure on Dubai's tourism. 'In the space of the past three months the euro and sterling have depreciated against the dollar by 20%-25%. Since Dubai's currency is pegged against the dollar that means that hotel rooms overnight have almost become 20%-25% more expensive for that consumer set,' according to Alex Kyriakidis, Global Managing Partner of Tourism, Hospitality & Leisure at Deloitte.Combined with the fact that many travellers in the major feeder markets to Dubai, meaning the UK and many other European countries, are suffering from significant pressures on their spending due to weakening economies and the prospect of job losses, the outlook for leisure travel to Dubai does not look rosy in the short term.Many companies have started adopting 'essential travel only' policies, and instruct their employees to fly economy rather than business class.One result of declining occupancy is that hotels may start to go after certain segments that they traditionally may not have targeted. For example, beach hotels which have seen a decline in leisure travellers may begin to target the corporate travel market.
  • Collective Marketing is needed for the region to boost the overall demand (similar to Scandinavia’s marketing under the ‘Go Scandinavia’ slogan)For tourists with connecting flights or with Cruise stopovers, 5 to 12 hour tours similar to Singapore’s Changi Airport ‘s tours, discounted hotel rates for tourists staying up to 24 hours can be some future trends to be seen for Dubai.Family Tourism is next on the agenda :Tatweer, a Dubai SOE, is investing $63 bn in Dubailand, a family focused entertainment complex with sports grounds and a 6 Flags theme park. Dubai can use its existing hotels towards family tourism, boosting occupancy.Foreign tourists can be encouraged to invest in Dubai land, perhaps making the area tax – free zone allowing 100% FDI
  • Family Tourism is next on the agenda :Tatweer, a Dubai SOE, is investing $63 bn in Dubailand, a family focused entertainment complex with sports grounds and a 6 Flags theme park. Dubai can use its existing hotels towards family tourism, boosting occupancy.
  • The DTCM, despite being effective in creating the initial demand such as the DSF, has declined in importance and is not functioning properly. DTCM should conduct a marketing campaign to get foreign tour operators to set up local operations in Dubai. This will allow the companies to have a direct, local insight into customer preferences
  • Dubai continues to invest in new hotels ( Dubai has the second largest hotel pipeline in the world) despite of levelling of off demand. Attracting new types of tourists, spinning off state owned companies either to private sector or public markets to ensure proper governance and private sector competition should next on the agenda.
  • Favourable location as a global hubAbundance of cheap immigrant labourHigh Quality of Air, Road and Port InfrastructureCollaboration between the government agenciesNil Political turmoilNo regional collaborationCultural RestrictionsSustainable TourismCollaboration between different Emirates (UAE)Targeting of Medium SpendersCompetition from other regions

Transcript

  • 1. Changing Trends ofDubai Tourism Industry Pooja Kalloor Swapna Malekar
  • 2. Objective Dubai Tourism Ecosystem Perception of Dubai amongst Tourists Understand different types of Tourism - Business, Retail and others Challenges of Dubai as a Tourist destination
  • 3. Destination Dubai Safe Compact Connectivity Affordable Luxury Special Events Cruises
  • 4. Key Performance Indicators WEF’s T&T Competitiveness Report 2011 UAE ranked Regional rank –139 countries 30th 1st Destination Air transport – Government’s Marketing 4th support – 8thCampaign – 1st Rules & Affinity for T&T Regulations – – 25th 38th
  • 5. Key Performance Indicators MasterCard Index of Global Destination Cities 2011 Growth of Dubai ranked 9th – International 132 cities International Visitors – 6th. Visitors. 7.9m 17.3% Growth of International Regional Ranking InternationalVisitor Spending – – 1st International Visitor Spending – 18th. $7.8bn Visitors 3rd. 24%Regional rank 3rd Regional Rank – Regional Ranking Growth rate of Growth of – 1st International International International visitor visitor spending visitors spending 3rd
  • 6. Tourism Industry in Dubai’s Economy 6% empl oyme nt Direc t– 21% Indirect – 35%
  • 7. From a Desert to a Dream
  • 8. Birth of Tourism Industry 1992 –1960 – Dubai Dubai 1971 1985 – FinanInterna – Port Emirate cial tional Rashi s CentrAirport d Airlines e 1966 – 1977 1989 – 1996 – DPC – Dubai Dubai discov Jebel Tourism Shoppin ered 4 Ali Board g offshor Port Festival e fields
  • 9. Birth of Tourism Industry 2010 – 2010 – Burj Definitely Khalifa & Al Dubai Maktoum Campaign 2001 – Dubai International Summer Airport 1999 – Surprises Burj Al Arab1997 –DTBrenamedto DTCM
  • 10. Dubai Tourism Ecosystem
  • 11. HotelsAirport Tourism Airlines Retail
  • 12. Hotel Occupancy Hotel Apartment Hotel Room90%80%70%60%50%40%30%20%10%0%
  • 13. Growth of Hotel & Hotel Apartments Hotel Hotel450 Apartment400350300250200150100 50 0
  • 14. Number of Guests Hotel Guests Hotel Apartment Total10,000,000 Guests Guests 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0
  • 15. Number of Guest Nights Hotel Guest Hotel Apartment Total Guest30,000,000 Nights Guest Nights Nights25,000,00020,000,00015,000,00010,000,000 5,000,000 0
  • 16. Average length of stay Hotel Hotel Apts. Total5.04.54.03.53.02.52.01.51.00.50.0
  • 17. Guests by Nationality • UAE : Only country contributing 10.4% of total guests. Avg. length of stay at 2.1 days. Arab • AGCC : As of 2010, contribute 13% of total guests. % increase in guests – 30% only. Avg. length of stay is 2.6 days. • 161% growth since 2001. South Asia is major contributor of guests. Asia • China : 2nd highest growth of 1454% since 2001. continual rise in guests. • India, Philippines, Singapore and Indonesia • Growth – 382% since 2001. • USA : Approx. 70% of guests from theAmericas Americas come from USA. Growth at 416% since 2001. • As of 2010 28% contribution to total guests. Highest Avg. length of stay at 3.5Europe days. • UK & Germany : Relative decline post recession.
  • 18. Highlights1-star forms the highest no. of hotels5-star hotels have highest no. of rooms.Highest occupancy seen in 5-star hotels at73%Bed Occupancy highest in 5-star hotels at 80%Arabs, Asians, Africans, Europeans andAmericans prefer 5-star accommodationRecession changed the dynamics of nationalitywise visitors
  • 19. Airlines • Emirates Airline launched. Oct 1985 25th - First flight to Karachi • Boeing 737 and Airbus 300 B4. • Placed order for 243 aircraftsExpansion since 2001 worth USD 60 billion. • 2008 – Emirates dedicated • Terminal 3. 15 A380s – Fleet – 170. largest in the world. Current • Destinations – 115 • Countries – 60 • Shanghai, Amsterdam, Prague,Destinations Madrid, Basra, Al Medinah, Dakar
  • 20. Dubai AirportDubai International Dubai World Airport (DXB) Central (DWC) 4th busiest Opened in June 2011 3 Terminals Phase 1 – Cargo operations 60 mppa Completion in mid 2020s Rise to 75mppa -> dedicated Capacity – 160mppa and 12 A380s Concourse 3 opens million tonnes of cargo
  • 21. Dubai Airport Passenger Traffic Passenger Traffic (in Thousands)600005000040000300002000010000 0
  • 22. Retail Dubai DubaiDSMG - Shopping Summer Gold Souk 1998 Festival - Surprises 1996 One World. On Dubai One Family. Big Fun for InternationalShoppin One Festival Little Ones Gold Trade g Mall route 2011 – Dh. Group 15.1 billion All indoor Biggest activities at physical re- Modhesh distributors 70% of total Fun City of Gold revenues Dh. 3.37Over 40 billion, 2.2 malls Low profit – Sales grow million high volume 10-over 50% visitors (2009)
  • 23. Dubai Duty Free Single Largest Airport Retailer in the World Investment Corporation of Dubai : Sole Owner of DDF 2010 : Revenues of 1.3 billion Accounts for 5.4% of airport shop sales, 3.2% of global duty free and travel retail sales. They hired people from Ireland, with DDF being the worlds single largest airport retailer. It has toppled Seoul and Heathrow and then toppled Africa and Kenya. Chocolates and Perfumes are consumed the largest in DDF.
  • 24. Types of Tourism
  • 25. SpeciaLeisur Busine l Cruise e ss Events
  • 26. Tourist BreakupBusines s 32% Leisure 68%
  • 27. Leisure Tourist Breakup Holiday 3% 3% 4% Visit Friends and 4% relatives4% Shopping 27% Beach break8% Stopover To see Dubai 10% Cruise Passenger 21% 16% Weather Leisure events
  • 28. Business Tourist Breakup 5% 2% Business Meetings 9% MICE 35% FIT22% Air and Ship crew Business Project 27% Education & Training
  • 29. Business TourismDubai World Trade Center (DWTC)Dubai International Convention & Exhibition CentreDubai Govt. & Dubai Events and PromotionsEvent Management companiesAverage of 3 events per day in Dubai.Each exhibitor brings a team of 4-7 members for aperiod of 1 week.
  • 30. Special Events Tourism Arabian Travel GITEX Arab Health MarketDubai World The Hotel Gulf Food Cup Show Exhibition Dubai International Boat Show
  • 31. Cruise Tourism • March 2001 • 15 minutes drive from Dubai InternationalDubai Cruise Airport • Named world’s leading cruise port 5th time at Terminal World Travel Awards 2011 • Serves two Ocean-going cruise ships • Combined capacity of 7000 passengers • Global Marine Terminal Operator • Expansion of Port Rashid by end of 2012 to DP World cater to five cruise ships. • Eventual goal of seven cruise ships and 625,000 passengers by 2015 • 2009 – 2010: 30% growth in tourist traffic. 260,000 to 390,000 passengers • 2011: 135 ships, 375,000 visitors Growth • 58% by end of 2015 • Abu Dhabi, Qatar, Jordan, Oman investing heavily in Cruise terminals
  • 32. Summary Definitely ITB, Berlin, G Dubai DTCM 2011 ermany Campaign - 2010• Dept. of • Participated • 22nd • Destination Tourism and in 25 consecutive Marketing Commerce exhibitions year. • Contempora Marketing worldwide • 10,000 ry marketing• 18 overseas and 10 exhibitors techniques representati workshops from 180 – social ve offices as part of countries. media, ratin their 108,000 gs, reviews marketing trade plan. visitors. 78 • Spain, India, companies participated Switzerland, from Dubai Istanbul, Uk raine, Baltim ore, Beijing, Singapore etc.
  • 33. Other Types of Tourism Special Needs Green Tourism
  • 34. Key Findings
  • 35. Sudden growth of Hotels in 2004 Terrorist attacks of Sept 2001 in USA Dubai marketing itself on global scale in 2001-2002 Reputation building campaign as a safe tourist destination. Opening up of New Markets Dubai Reinvented itself Real boom in tourism for Dubai came in 2003. Destination Marketing
  • 36. DTCM & Emirates Airlines DTCM played a major role in promoting Tourism Road shows, sales trips : Destination Marketing Emirates Airlines  did destination marketing for Dubai even before DTCM. Familiarization trips in 2002 (to promote Dubai as a safe destination after the 9/11 attacks ). DTCM supported this. Brussels market opened  Up to 2 million people/year Copenhagen (Scandinavia market) opened up. After Sept 2001, the demographics of the visitors changed.
  • 37. Tourist Visa misuse People on a Business visit :Tourist visa. Vast difference in the statistics presented by the Visa and airport authority and the statistics shown by the hotel authorities. No system in check. Abuse of ‘Tourist Visa’ : Business Visa difficult to acquire.
  • 38. Self-Sufficiency People from neighbouring Emirates and countries visit Dubai Self-sufficiency for Dubai. Healthy sign Insulation from the economic turmoil in the rest of the world.
  • 39. Arab Springs Israel Bombing, Egypt uprising, Tehran etc.  People send their families and kids to Dubai since it is considered it is, a safe tourist destination. Positive impact overall due to Arab spring on Dubai Dubai : safe from this instability.
  • 40. Public Beach -Dubai Scarcity of public beaches in Dubai. If 1 % of the total population decides to use the public Jumeirah beach on any given single day simultaneously, they won’t be able to do so, since there is not enough beach available! City Hotels and Beach Hotels
  • 41. Real Estate Bust Real Estate Bust in 2008-2009, it intends to lift up now in a marginal way. Around 430 projects half completed. Real estate prices will continue to go down for a few more years. Government will have to demolish them at some point of time. Dead buildings
  • 42. Collaborating In 1999, IBM, around 4000 tourists were expected for a conference. Lack of hotel apartment to put up with 4000 guests. 16 Israelis: Special Treatment Government agencies and other private organizations joined hands to get this done.
  • 43. Sustainable Tourism Mirdiff city center - Conservation of Energy Internal Tourism DSS – Generates Revenues in an Off Peak season
  • 44. Challenges
  • 45. Not enough competitionDubai promotes Open Skies policy (to ensure sufficientcompetition in the logistics cluster)Competition between shopping and tourism sector is still low.Emaar Malls, another government owned entity controls 49%of the retail space in Dubai.Emirates Airlines and FlyDubai, both government owned, stillcontrol 62% of the Dubai Airport.Only the Hotel sector is competitive, with 47 internationalbrands present despite Jumeirah Group’s prominence.
  • 46. DTCM lacking DTCM has led the international efforts to promote Dubai’s tourism sector. However little has ben done by DTCM to promote broad based collaboration by the players in the Tourism sector. Efforts of DTCM domestically : 1996 : Dubai Shopping Festival 2001 : The Summer Suprises 2009 : Keep Discovering Dubai campaign 2010 : Definitely Dubai Campaign Necessity to work together
  • 47. Global economic slowdownThe financial crisis of 2008 and the overall global economicslowdown : impact on the number of tourists entering Dubai.Dubais tourism industry suffered in the second half of 2009 and thefirst half of 2010.Hotel Occupancy rates fell to an all time low, with many projectsgetting cancelled and postponed due to recession and downwardeconomic condition.The dirham is pegged against the dollar, the decline of euro andpound against the dollar is putting pressure on the tourism industryin Dubai.
  • 48. Visa RulesImpact of lenient tourist visarules in neighboring countrieslike Qatar on Dubai.Visa and immigration rules moretourist friendly in order to attractand retain the tourist population.
  • 49. CompetitionStiff competition from less expensive places like Lebanon andEgypt.Qatar has been touted as the next tourist destination.Dubai also faces tough competition from well-establishedtourist destinations likeAustralia, Malaysia, Maldives, Caribbean, SouthAfrica, Thailand, and Turkey.
  • 50. Ecological ImpactDubais extensive diversification Tourism program Negativelyaffect the bird sanctuaries and eco reserves.The Jumeriah coastline : ErosionUpset the delicate ecological balance of the region andincreased erosion of the coastline.Unrestricted construction and man made islands in and aroundDubai  Disturbed the flow of water around these islands
  • 51. Rising Cost of the HotelsDubai ranked highest globally in terms of average room rate in October 2010, withan average of $375 during the month.To lure travellers some hotels in the emirate have begun offering special packagesand discounts of 30% or more.Since Dubais currency is pegged against the dollar that means that hotel roomsovernight have almost become 20%-25% more expensive for that consumer set.Companies adopting essential travel only policies.One result of declining occupancy is that hotels may start to go after certainsegments that they traditionally may not have targeted
  • 52. Survey Analysis ResultsFactor Analysis
  • 53. Tourist AttractionLeisure Safety & Infrastructur e Weather Cultural Experienc e Cosmopolita n Shopping nature /Retail
  • 54. Survey Result AnalysisNeed Gap Analysis
  • 55. Dubai Weathe Duty r Overall Free Shopping Experience Gold Beach Souk Desert DSS Dubai Special Shopping Night Life Festival Events Tourist Safety Attraction s Resorts & SpasExpectations and Perception Expectations andare same Perception are different
  • 56. FutureTrends
  • 57.  Dubai has plans to expand its current airport infrastructure to include Concourse 3 dedicated to A380s by 2018, forecasting to serve 90M passengers with an investment of $7.8Bn. It has plans of building Dubai World Central International Airport – Al Maktoum by 2030, hoping to cater 120M passengers. Also, according to UN World Tourism Organization (UNWTO), the number of tourists visiting the Middle East is expected to grow by up to 9% in 2012.
  • 58. Image Rebuilding Trend  From the last 7-8 years, Dubai has stepped down from an image of an exclusive rich place to a place which caters to everybody. There is better collaboration to be seen between the different Emirates on tourism. Creation of Federal authority of tourism. More diverse markets like South America and Africa are expected and should be seen in Dubai. The trend is towards more of Leisure tourism, Business Tourism, Sports tourism and Special Interests Tourism.
  • 59.  Collective Marketing is needed for the region to boost the overall demand (similar to Scandinavia’s marketing under the ‘Go Scandinavia’ slogan) For tourists with connecting flights or with Cruise stopovers, 5 to 12 hour tours similar to Singapore’s Changi Airport ‘s tours, discounted hotel rates for tourists staying up to 24 hours can be some future trends to be seen for Dubai.
  • 60. Family Tourism on its way
  • 61. DecliningFunctioning of DTCM
  • 62. ContinuedInvestment innew hotelsdespitelevelling off ofdemand.
  • 63. SWOT Analysis - Dubai
  • 64. Strengt- Favourable location as a global Weaknehub hs ss No regional collaboration- Abundance of cheap immigrantlabour Cultural Restrictions- High Quality of Air, Road and Sustainable TourismPort Infrastructure No National Tourism- Collaboration between the Boardgovernment agencies- Nil Political turmoil Opportunity Threat Collaboration between s different Emirates (UAE) Competition from other regions Targeting of Medium Spenders
  • 65. Thank You