The document discusses inbound and outbound tourism in the UAE and its effect on the economy. It notes that the UAE has become a top tourist destination due to its beaches, shopping, and attractions. While the economy was previously reliant on oil exports, tourism is now a large and growing sector. The government is investing heavily in tourism infrastructure like airports and attractions. Both inbound tourism, which benefits the economy, and outbound tourism by UAE residents are growing significantly. The tourism industry is expected to continue strong expansion in the coming years.

1. UAE Country Profile
Presentation
By: Semi Nabalarua Watisoko Nuenue
Tirikula

2. Inbound and Outbound Tourism in
the UAE and its effect on the
economy

3. Introduction
• The United Arab Emirates, one of the world's fastest growing
tourist destinations, has all the right ingredients for an unforgettable
holiday, sun, sand, sea, sports, unbeatable shopping, top-class hotels
and restaurants, an intriguing traditional culture, and a safe and
welcoming environment.
• According to the World Bank, It has a population of 9.4million,
with expats making up 84% of it’s population
• Their top exports are oil and natural gas which accounts for over
40% of the country’s total GDP. However, in recent years, UAE is
no longer solely reliant on the top two exports for revenue, they
have now shifted there investments towards tourism, trade, real
estate and construction, are also large contributors to the country’s
GDP.

4. • With only a short span of 43 years, after the discovery of oil by the
late Sheikh Zayed bin Sultan Al Nahyan, UAE has made itself one
of the most lucrative central business district in the world.
• With its continuous growth in business, building infrastructures and
other entertainment and leisure facilities, UAE is already becoming
a destination with a much lusted for experience by tourist and
business travelers
• With a vast majority of tourist travelling to the UAE every year,
Dubai, along with other Emirates, are expanding their airports and
even building a new airport.
• The recently opened Al Maktoum Airport (DWC), in Dubai can
service up to 200million passengers and 16million tons of cargo
annually

5. Bio Data
Social Profile:
• The UAE consists of 7 emirates, Dubai, Sharjah, Umm al Quwain, Ras
Al Khaimah, Fujairah, Ajman and the capital Abu Dhabi
• Surface area (sq. km) in the United Arab Emirates was last measured
at 83,600 in 2014, according to the World Bank

6. • UAE has a population of 9.4 million 84% of which is made of expats
and 1.6 million are Emirati citizens
Economic Profile:
• Also, an attractive feature about the UAE is their economic growth,
one which attracts a lot of business travelers, diplomats as well as
investors
• The economy’s top exports are oil and natural gas accumulating
almost 40% of the UAE’s total GDP
• Yet, in order to diversify the economy and reduce the dependence on
oil revenues, UAE has been making huge investments in the tourism,
financial and construction sectors. Thus attracting foreign money to
flow into the UAE economy

7. Source: www.tradingeconomics.com / National Bureau of statistics, UAE
• United Arab Emirates is one of the most developed countries in the
Arab Gulf and has one of world´s highest GDP per capita
• UAE is also the 15th largest in military expenditure in the world,
according to the Stockholm International Peace Research
Institute. With their budget just over $14 billion.
• It's also on pace to become the world's third-largest defense
importer in 2015.

8. Abu Dhabi Crown Prince Sheikh
Mohammed Bin Zayed Al Nahyan
(C) watches the closing ceremony
during joint military maneuvers
between the UAE and the French
army in the desert of Abu Dhabi
on May 2, 2012
French-made Mirage 2000 and
U.S.-made F-16 fighter jets of
the United Arab Emirates forces
take part in joint military
maneuvers' with the French
army in the desert of Abu Dhabi
May 2, 2012.

9. Smoke is seen after United Arab
Emirates F-16 fighter jets fired
missiles during joint military
maneuvers with the French army in
the desert of Abu Dhabi May 2,
2012.
Members of the United Arab
Emirates' armed forces
participate in the opening
ceremony of the International
Defense Exhibition and
Conference (IDEX) on Feb. 17,
2013.

10. U.A.E Strategies
During my research I have found that the UAE government has
diversified her investments development goals towards;
• Tourism
• Financial Institution and
• Civil Aviation Industry
These three development goal strategies help the United Arab Emirates
to build a more resilient economy, as they all come together to serve
common goals for the UAE government economic development.

11. Tourism Industry;
• Tourist arrivals in the UAE are forecast to grow at a compound
annual growth rate of 7.6% between 2012 and 2022, with hotel
supply also expected to increase from the current 96,992 hotel rooms
in Dubai and Abu Dhabi, to a total of 125,383 hotel rooms in 2016.
• According to a report released by the World Travel and Tourism
Council, the UAE accounts for 41% of total investment in the travel
and tourism sector in the Middle East.
Inbound

12. • The report also predicted that the volume of investments in the
tourism sector in the UAE would grow by 7% yearly.
• Dubai and Abu Dhabi are considered to be the hubs of tourism in the
UAE,
• With such attracting and famous structures such as the; Sheikh Zayed
Mosque in Abu Dhabi, Ferrari World that houses Formula Rossa, the
fastest roller coaster in the world located in Yas Island and even the
Burj Khalifa, the tallest building in the world in Dubai.
Sheikh Zayed Mosque,
Abu Dhabi

13. • Moreover, the development of large-scale projects, such as a
D600 billion theme park called Dubai Adventure Studio and
the Dubai Art Museum, will ensure that leisure tourism
continues to increase.
• Business and conference travel also represents another key
growth area.
• Also, the significance of the UAE’s tourism sector in the
region is reflected in the number of passengers visiting Dubai,
which receives the largest number of visitors of any Arab
destination

14. Formula Rossa, In Ferrari
World, Yas Island. It is currently
the fastest Roller Coaster in the
world. With a top speed of
240km/h (150mph)
The Burj Khalifa in Dubai. It
has 163 Floors, with a height
of 830m to the tip.

15. • The 3 places mentioned above are just a fraction of the many other
beautiful, historical, cultural and stunning, infrastructures, site
seeing, entertainment and leisure facilities made available to the
tourists, citizens and residents of the UAE
• The UAE are also diversifying its tourism strategy towards medical
care, With well equipped hospitals and clinics and highly qualified
doctors, nurses and surgeons at hand, the demand for health within
the UAE has been ever increasing, both at home and, from abroad
• Education has also played a major role in the economy, with the
increase in highly recognized and well equipped universities,
schools, and academies. The academic demand in the UAE is
becoming an evermore increasing service.

16. KHALEEJ TIMES
- 25 March 2015 -
• The Asia Pacific is set to increase there arrivals from 2.9 million in
2014 to four million in 2018.
• This reflects the growing wealth of Asia, coupled with increased
business travel and significant numbers of expatriate workers
coming to the UAE from nations such as India and Pakistan
• The tourism authorities in Dubai are said to be already considering
ways to boost the number of inbound tourists from China, India and
African nations.
• This involves examining what holidaymakers from these
destinations require and tailoring Dubai’s tourism offering
accordingly through the development of new hotels and attractions

17. The new Dh700m specialist woman
and children’s hospital in Abu Dhabi
scheduled to open soon
Construction of the Kings’ school
Al Barsha, English Curriculum.

18. Outbound
• Travel trade respondents reported strong growth in leisure travel
bookings (up 14 percent) as well as business travel bookings (up 12
percent) in 2013 compared to the previous year.
• Due to the rise in income, following the downturn of the economic
crisis in 2011, most UAE residents have been spending more on
trips abroad.
• The majority of people that leave the country on holiday a between
the ages of 18 – 27 (single) during peak season.
• According to the Barometer findings, the winning of the Expo 2020
bid by Dubai has further boosted business and consumer
confidence, and the majority of the travel trade projected continued
growth in outbound travel from the UAE in 2014.

19. • Six in ten travel trade respondents in the Barometer survey projected
an increase in bookings in first quarter 2014 compared to the same
period in 2013, while over eight out of ten respondents projected
higher bookings in second quarter 2014 compared to the same
period in the previous year.
• The UAE is the 21st largest travel market in the world in terms of
outbound travel expenditure, with total spend of US$15.1 billion on
outbound travel in 2012, as per UN World Tourism Organization
(UNWTO) statistics

20. 20 Most visited places in the World by
UAE residents
1.Cairo
2.Amman
3.Beirut
4.London
5.Istanbul
6.Bangkok
7.Doha
8.Manila
9.New York
10.Toronto
11.Manama
12.Muscat
13.Jeddah
14.Colombo
15.Paris
16.Male
17.Riyadh
18.Mumbai
19.Kuwait City
20.Washington DC
• Expedia.com said Cairo came out on top of the list which
has been based on bookings performed on Expedia sites
such as hotwire.com, trivago and Expedia itself, beating
Amman in Jordan and Beirut in Lebanon into second and
third place.
• Cairo also saw the biggest increase in bookings in 2014
compared to the previous year, ahead of Saudi capital
Riyadh, Expedia said in a statement.
• Based on bookings and year-on-year comparisons,
Expedia predicts that Cairo, Beirut and Amman will also
be the top outbound travel destinations for 2015.
• New York and London are expected to each move up in
the ranking to fourth and fifth places, respectively.

21. Analysis of Inbound and Outbound Tourism
The decision of diversifying economic activities towards tourism has
proven to be a well invested profitable business. With growing
demands of luxury vacations and more leisure activities, what better
place to provide such an extravagant and unforgettable adventure than
the U.A.E. Therefore, consumer demands for travel will and always
be an ever increasing one.
The UAE tourism industry will continue to expand in 2015, with 7.6
per cent year-on-year growth in tourist arrivals and 9.3 per cent
increase in tourism receipts, according to a report by Business
Monitor International (BMI).

22. Financial Industry:
• The UAE's attractiveness as a
country to invest in is improving
despite the Middle East region
seeing a drop in foreign direct
investment (FDI)
• The UAE moved up one place
to claim 14th position in the
latest AT Kearney Global
Foreign Direct Investment
Confidence Index (FDICI).

23. In a report submitted by Mr. Anshu Vats, partner at AT Kearney
Middle East, he stated and I quote:
"With strengths in logistics, tourism, and hospitality, the UAE
remains the pocket of strength for regional investments in the Middle
East. FDI could increase in coming years as the UAE eases foreign
ownership laws,"
• The report highlighted the UAE's "well-developed infrastructure,
strategic location, and tax-free base" as reasons for increased
international investment.
• According to Sovereign Wealth Fund Institute, an increasing
number of sovereign wealth funds and other large public
institutional investors have boosted their activity in direct
investments, participating in acquisitions globally.

24. • The figures released by SWF Institute show an increase in the
transactions taking place. In 2013, the institute’s database shows
that GCC-based sovereign wealth funds made $20.2 billion in
direct transactions, an increase from $18.32bn in 2012.

25. • There has also been a major growth of private sector businesses in
the UAE. So banks have taken it upon themselves to create a more
friendlier policies towards banking and financial partnership with the
private sector
• The government grants these private sector businesses subsidies in
order to boost productivity so that the UAE based businesses can gain
capital advantage against their competitors by selling their services
and or products on a much wider market both at home and abroad

26. Civil Aviation Industry
Civil aviation has been growing rapidly in the UAE, With several
airports all around the seven emirates are being extended and the
recently opened airport in Dubai (Al Maktoum Airport). These new
developments have been the result of the ever increasing number of
INBOUND TOURISM. Airlines such as;
• Emirates
• Etihad
• Air Arabia
• Fly Dubai
are all UAE based airlines, they have also been expanding their
operations facilities in order to facilitate the forecasted growth on
tourism in the coming years. Since the development of UAE, over 42
years ago, civil aviation has played a primary role in connecting the
UAE to the rest of the world and vice versa.

27. • Civil Aviation has been used in many possible ways to help the
UAE develop and increase its economic activity and help boost its
wealth.
• Not only has it the civil aviation used there resources for the
benefits of airports, they have also contracted hotels, such as the
Millennium Hotel in Dubai.
• It is conveniently located near the Dubai International Airport and
the city’s major central business and historical districts (Bastakiya
and Sheikh Saeed Al Maktoum Heritage House), tourist spots (Gold
Souk), shopping centers, and entertainment hub.
• Tourists are mostly attracted by the connivance of where the hotel is
located an the attractive services provided by the airline during their
duration of stay.

28. Millennium Hotel in Dubai

29. • The UAE has taken pride for there achievement by winning the
2020 expo, thus leading the rise of new hotel constructions, foreign
investments and the rise in developments of airports
• The Al Maktoum International Airport was opened to facilitate the
rise in the number of tourist and big aircrafts such as the A-380,
flying in and out of the UAE
• The first runway at Al Maktoum International Airport, set to be the
world’s largest, at Jebel Ali in Dubai, has been completed on time
in the projected 600 days. This is an aviation record for the fastest
A-380 enabled 4.5 kilometre.

30. • Taking such huge passenger flows, baggage handling, car parks,
check in counters, security checks, facility management, amenities,
flight paths, ground handling, taxiing flows, roads and
infrastructure and air traffic control into consideration, has been the
first priority in planning the airport. Making it convenient for
departing and arriving passengers
• The Al Maktoum International Airport can service up to 200million
passengers and 16million tons of cargo per annum
• Dubai — The UAE aviation sector will continue to sustain upward
trends in terms of opening of more routes and increase in
frequencies with the induction of more than 50 planes this year,
according to industry sources.
• Emirates and Fly Dubai – both Dubai based airlines - will lead the
table with the possible deliveries of 33 aircraft worth around $10.5
billion at list prices.

31. • Sharjah-based Air Arabia is looking for six Airbus A320 aircraft
worth around $563 million at list prices this year.
• Etihad Airways, which expects 204 aircraft by the end of 2025, is
also likely to induct a minimum double-digit number in its fleet this
year.

32. • Emirates airline received 27 deliveries worth around $10 billion at
list prices. The airline balanced the aircraft induction into its
growing fleet by adding 13 Airbus A380s, 12 Boeing 777-300ERs
and two 777 Freighters. Emirates’ total fleet size stands firm at 232
aircraft at present.

33. Summary
Over the years, U.A.E has proven to be one of the most industrious
nation in the world. With only a short span of 42 years, its government
has developed, and beyond all odds, shaped its country to be well on
its way to becoming the world’s number one hub for business trading
as well as a famous tourist hotspot.
In recent years U.A.E has become well known for its leisure and
luxurious life style, thus attracting more and more people in each year
who also wants in on a piece. Even though luxury might play a center
stage at promoting the U.A.E for its glamorous place that it truly is,
they also give more importance towards civil aviation, the one
physical factor that connects the rest of the world to the U.A.E.
Civil aviation in the U.A.E has become increasingly essential. Its
growth have proven to be a driving force for the greater good of the
economy and its people. With the persistent growth of the country,
civil aviation is beginning to meet a rise in demand for its services and

34. Conclusion
In view of my research, I conclude that UAE is the HUB of:
• Tourism
• Trade
• Investment
• Education
• Medical Services
• Industries (Manufacture Re-export)
The diversification of the UAE economy will surely see an
exponential growth in years ahead as compared to other countries in
the Gulf or greater

35. Recommendations
• Travelers nowadays often like to carry a lot of stuff with them when
they travel, which usually means that their baggage will be over the
weight limit, so a good package deal with for example, 30kg each
luggage instead of only 20, would draw in a lot of customers to
your agency
• Another is a ‘transit hotel booking’ passengers are always looking
for a good rest after a long haul flight, so the easy transition from
the arrival gate to the hotel without worrying about luggage is a
definite plus
• Sight seeing package for transiting passengers is also a factor that
can boost foreign money to flow into the economy.