Historical Perspective Discovery of oil led to concessions to international oil companies Foreign workers erupted the population by over 300% The formation of United Arab Emirates (UAE) becomes a reality
Historical Perspective Gulf Air, a joint venture between Abu Dhabi, Bahrain, Oman and Qatar, decided to cut back its services to Dubai. This prompted Dubai to launch its own airline. The Emirates Airline began in the UAR with 2 rented planes and a $10 million investment from Dubai’s ruling family under the direction of Maurice Flanagan.
Historical Perspective The Dream Becomes A reality! Beginning of growth and development due to Strategic decision made to emerge as a major international quality tourism destination. Dubai 1990 The economy is dominated by three major sectors: Tourism Oil/Gas and related activities Property Construction Dubai A City of Growth!
Historical Perspective Dubai A City of Growth! Dubai is a place where East meets West. Dubai is cultivating the perfect combination of its own traditional approach fused with Western capitalistic interests and thus making Dubai a great economic force. First: 1993 Middle: 1999 Last: 2006 These three images of a main street running through the city show the huge advancements in the cities growth between the years of 1993 and 1999 and 1999 and 2006.
Historical Perspective The Dream Becomes A reality! Dubai A City of Growth! Dubai is most definitely a home to many firsts and superlatives It has: One of the biggest airports in the world The largest man-made port in the world The largest mall in the world The largest theme parks in the world bigger than Disney Parks in Florida The only 7 star hotel in the world! The largest skyscraper in the world Palm Juneriah the first man-made palm- shaped IslandBurj Al Arab lit up at night time
Historical Perspective The City At Its Peak! Dubai A City of Growth! Dubai is a country with an unlimited budget for growth It also represents a unique transformation in the Persian Gulf , a petro-dollar rich location that thought beyond oil to a time when its economyAnd Dubai is still could no longer be fueled by its oil reservesgrowing! and decided to invest instead in travel and tourism - and is now acting on the vision In 1996 two events help to place Dubai on the world stage as a major tourist destination. The two events were the Dubai shopping Festival and the Dubai Soccer World Cup, they both enhanced Dubai`s reputation as at tourist Mecca
Historical Perspective Dubai A City of Growth! Oil revenues in Dubai dropped to 7% of GDP as economic development expanded to transport, tourism and business. Dubai, ruled by the wealthy al-Maktoum family, planned to become the main financial center between Europe and Asia. The Gulf emirate of Dubai announced it had bought the Queen Elizabeth 2, one of the worlds most majestic cruise liners, and planned to turn it into a luxury floating hotel.
Historical Perspective Dubai A City of Growth! In 2005 the state-owned Emirates planned to double its 73-plane fleet. Dubai began creating a world-class financial centre as part of its diversification into service industries before running out of oil and gas. It was reported that Dubai was constructing the $5.5 billion Palm Island resort project, scheduled for completion in 2006. The $4.9 billion Dubailand tourist city included 45 theme parks, sports centers and discovery zones.
Historical Perspective Dubai A City of Growth! It was reported that two subsidiaries of government-owned Dubai World have acquired a 20% stake in Canada’s circus operator Cirque du Soleil. In May the circus had agreed to perform on Palm Jumeirah, a man-made island, for 15 years starting in 2011 Dubai is threatened by bankruptcy. The United Arab Emirates said it will spend $10 billion to bail out Dubai, whose huge construction and financial sector expansion plans slowed under the world wide downturn.
Historical Perspective Dubai A City of Growth! Developers of the Burj Dubai, a 1,680-foot skyscraper still under construction in oil-rich Dubai, claimed that it has become the worlds tallest building, surpassing Taiwans Taipei 101 which has dominated the global skyline at 1,667 feet since 2004. In 2008 NYC David Fisher, an Italian architect, said he is poised to start construction on a new skyscraper in Dubai that will be "the worlds first building in motion," an 80-story tower with revolving floors that give it an ever-shifting shape.
Historical Perspective Dubai A City of Growth! World’s tallest building Burj Khalifa stands at 829.84m. The decision to build Burj Khalifa is reportedly based on the governments decision to diversify from an oil based economy to one that is service and tourism based. Burj Khalifa tower opens in Dubai as the worlds tallest building and man-made structure in 2010
Historical Perspective Dubai A City of Growth! The Travel & Tourism industry has a high significance to Dubai’s economy (direct contribution of 20% & 6% to Dubai’s GDP and total employment, respectively) Dubai is one of the Top 10 tourism destination cities in the world, primarily driven by business and leisure (shopping, beach, etc.). In the UAR Dubailand, a tourism and entertainment complex, hopes to attract 15 million tourists annually by 2015. This will amount to about 40,000 visitors per day.
Historical Perspective Dubai A City of Growth! The establishment of world-class infrastructure and landmark projects (such as Burj Khalifa, Dubai Mall, Meydaan racecourse, etc.) coupled with marketing initiatives by Emirates and DTCM have been the key drivers for Dubai’s tourism industry. A strong government focus to develop tourism through diversification into new tourism segments (cruise, medical tourism, sports tourism, etc.) is expected to further drive growth of the industry.
Historical Perspective The First Phase – the Railroad City Birth of Las Vegas incorporated as a city The completion of the Railroad between L.A. and Salt Lake City establishes Las Vegas as a Railroad town Western Airlines first flight to skies Las Vegas is in the apploration phase. There is little or no infrastructure. No of residents total 945 of which 80% work for the Railroad Company
Historical Perspective The Second Phase – Gambling Divorce Law and Hoover Dam! 3 events occurred that changed Las Vegas for ever The construction of the Hoover Dam Nevada legislature legalized gambling and quickie divorces Freemont street’s gaming casinos attracted the workers from the Hoover Dam the foundation of Las Vegas as a resort industry thus begins
Historical Perspective The Third Phase – “ The Strip” Tourism and Entertainment Evolves After World War II decorated Hotels and gambling casinos emerged. The Strip’s first hotel El Rancho Vegas Opens. Representing the first stand alone full service resort offering rooms, food, swimming pool, gambling and entertainment J. Walter Thompson receives first advertising contract to promote Las Vegas as a Tourist Destination
Historical Perspective The Third Phase – “ The Strip” Tourism and Entertainment Evolves The Strip begins transformation from small gambling clubs to boasting casinos and luxury resort hotels Las Vegas is in its involvement stage and tourist products and services are increasingly offered Tourism & Entertainment takes over as the largest employer in the city Las Vegas focuses itself on a post war reinvention of itself and its metamorphosis into an attractive gambling destination
Historical Perspective The First Milestone – Flamingo Hotel and The Concept of Theming Bugsy Siegel opens the Flamingo Hotel and led to a new era in Vegas. The hotel casino was modeled after resorts hotels in Miami and started the trend of the “themed” hotels. Moreover it spered with Dean Martin and offered value added through high-class entertainment Bugsy’s hotel concept led to Las Vegas Development phase and provided the foundation for its future incredible expansions. The Flamingo provided one of two significant parameters of the middle era of Las Vegas gaming history and ushered its city’s proletarian phase.
Historical Perspective The Fourth Phase – Growth through Entertainment After the grand opening of the Flamingo, resort building continued to accelerate in Las Vegas starting in the 50s by copying the successful star format for a number of years eg. The Tropicana, The Sands, The Dunes, The Sahara or Ceaser’s Palace Consequently people visit Las Vegas not jut for gambling, but also for the fantastic entertainment provided. Singers, strippers, topless dancers and a wide variety of performers contributed to the Las Vegas proletarian image.
Historical Perspective The Fourth Phase – Growth through Entertainment Las Vegas experienced its development phase from 1950 to 1980. With the popularity of the destination, visitors increased rapidly. Tourist facilities and special tourist infrastructure arise and the destination changed in appearance and is now actively promoted However by the end of the 80s experts consider Las Vegas being at its consolidated phase. The city seems to have reached its full maturity and overbuilt its room inventory. Dumping prices and cheap promotions are expected. Nevertheless Steve Wayne started a brand new hotel project & terminated the proletarian phase. A new Vegas era begins
Historical Perspective The Second Milestone of Vegas – The Mirage Steve Wayne opens first mega property “ The Mirage” with more than 3000 rooms in order to attract high end guests of the tourism market. White dolphins, tigers and lions arrive in Vegas. The resort strategy is born “ its all entrance and no exit. The tourist finds himself in a timeless world of concentrated stimuli design as much to be disorienting as pleasurable in a relentless campaign to extend the length of onsite visitation” (Douglas, Reanto, 2004).
Historical Perspective The Fifth Phase– Dawn of Mega Resorts and High Quality Tourism In order to change the city imagefundamentally the old Dunes (built in 1995) is imploded in 1993 which also held symbolic significance for Vegas. The implosion of the Dunes dermacated the end of an old and proletarian Las Vegas. Consequently many other first generation Strip resorts lost their identity through implosions, extensive renovations and new owners
Historical Perspective The Fifth Phase– Dawn of Mega Resorts and High Quality Tourism According to this new strategy, Las Vegas planted 76,000 palms, bushes and ground covers for a beautification of the city. Furthermore, a large number of Mega Resorts are built. At the end of 2000 the strip has 9 of the worlds 10 largest hotels. Bellagio, Venetian, Mandalay Bay, Mirage, Paris, New York etc.
Historical Perspective The Fifth Phase– Dawn of Mega Resorts and High Quality Tourism For e.g. the Bellagio addresses the affluent guests by offering World class entertainment (Circque du soleil) and art from the likes of Picasso Las Vegas emerges as a major gastronomic and shopping destination presenting 4 of 17 star restaurants in the US and highly attractive outlet centers.
Historical Perspective The Fifth Phase– Dawn of Mega Resorts and High Quality Tourism The Mirage literally reconfigured the strip and Las Vegas went from being a proletarian discount delight to one in which hotels like the Bellagio and the Venetian charge more the 400 dollars per night As Las Vegas was considered to be at the end of its consolidation phase at the end of the 80s this new “high end tourism” strategy led to a further economic increase. From 1990 to 2000 visitor numbers increased by 71%, hotel inventory by 69% and game revenue by 87%
Historical Perspective The Fifth Phase– Dawn of Mega Resorts and High Quality Tourism However, with the construction start of these Mega resorts and the reliance on gaming as the primary source of income, Las Vegas is considered to grow unsustainably and faces many with the new millennium such a decreasing visitors as well as revenues
Historical Perspective The Sixth Phase– Consolidation and Decline From 2001- 2010 Las Vegas building boom continued. Thus, Steve Wynn opens one the most expensive Megaresort “Wynn” in 2005 which cost about 2.7billion dollars. Also in 2008 the Resort-Casino “Palazzo” opens its doors. In combination with the Venetian, it provides 7128 rooms and constitutes the world’s largest hotel property. According to statistics of the Las Vegas Convention & Visitor Authority the city was in an unfavorable position. Room inventory was still rising causing dire overcapacity and forcing other hotel operators to offer discount prices
Historical Perspective The Sixth Phase– Consolidation and Decline Absolute visitor numbers were rising until 2007, when they began to rapidly decline in relative terms (consolidation) In 2008 tourist occupancy rates as well as gaming revenues decreased Las Vegas had reached its decline phase of the Tourist Area Life Cycle. “This desert valley, which once represented the most extreme pleasures in American consumerism, now has the most severe hangover” (Economist 2010)
Historical Perspective The Seventh Phase– Rejuvenation & Product Innovation Visitor volume is the single-largest determinant of Southern Nevadas economic health, driving hotel occupancy, average daily room rates, and gaming revenue. All experienced modest increases in 2011 and are expected to continue to improve in 2012. Visitors drive hotel occupancy, average daily room rates, and gaming revenue. Overall, 2011 was good for Las Vegas tourism. In 2010, visitor volume grew for the first time since 2007. Las Vegas currently pursuing the image of a Family Destination
Conclusion Two desert cities half a world away — Las Vegas and Dubai — have grown from dusty outposts into tourism empires. Both cities were built up as tourist destinations in a place that would never get tourists otherwise. Like Las Vegas, Dubai — an emirate located on the Arabian Peninsula — has experienced tremendous growth during the past two decades. Once solely dependent on oil reserves, the city now has the world’s largest concentration of five-star hotels.
Conclusion Both cities constantly build newer, bigger and better attractions to keep visitors coming back. Both cities had a massive housing bubble burst when the world economy tanked in 08. Both cities are far more fun to visit than to live in. Both cities are run by those well-connected to the unelected officials with the real power. Both cities are still today world-famous tourist destinations