Growth and Development of Tourism and Hotels in Dubai
Introduction
Tourism Industry is considered as one of the most significant and vital industries in the world. During the past few decades, it had been a great help for many countries, in improving their economies, by means of increasing sales, employment as well as currency earnings (Sinclair & Stabler, 1991). Furthermore, due to the different factors, including globalization and technology, together with the changing behavior of people, travel and tourism has become normal part of the daily life of people in the globe (Glaesser, 2006. p. 1).
Dubai
Dubai is the second largest as well as the most populous emirate of the United Arab Emirates or UAE, and it is still growing in terms of population as well as economic activity at an unbelievable pace. A multitude of developments aimed of making the country, bigger and better than anywhere else in the world are underway (Business Wire 2008). The leading industries in the country are trade, manufacturing, transport, construction, real estate, energy, telecommunications, finance and tourism (England 2006, p. 9).
Dubai is experiencing a vibrant development in its hotel capacity, entertainment options as well as tourism oriented luxury retail facilities that helped the country to position it in favorably with the tourists and markets or Europe and Asia (Globalysis 2008).
Dubai’s Tourism Industry
Dubai can be considered as the representation of a country or nation that truly embraced the industry of Travel and Tourism as a catalyst as a weapon for economic growth and prosperity (World Travel & Tourism Council 2008).
Dubai is considered as well ahead compare to other cities in the Middle East, in terms of the travel and tourism industry (England 2006, p. 9). The country stunned the world during 2002, when the World Tourism Organization praised it for posting 31% growth in the tourist arrivals, it is considered as the highest for the said year. It had continued and kept its record by impressive growth levels in 2003, by posting 5% increase in the number of guests (XTV World 2007).
In connection to that, the air links of the country had increased dramatically. That is the reason why the country is not just a major gateway for the Gulf, but it is also considered as the commercial and tourism center in its own right served by 60 airlines flying to more than 100 destinations. The new Dubai Air Cargo Village has been an instant success that handles some 180,000 tones a year and it is growing at an annual rate of over 19%. The Dubai International Airport had handled over 5.4 million passengers, up to 23.8% compare the prior year. To tap the growing tourism potential, the government of Dubai is trying to develop both the business as well as holiday travel. The tourism is seen as part of the effort of the country to expand their economy. The result is that, the number of the hotel guests are quickly increasing, together with the tourism infrastructure. Furthermore, the government is realizing the country’s climatic and sea potential, and it is committed in promoting a clean green eco-tourism (The Middle East 1993, p. 39).
Dubai’s Hotel Industry
During 2004, the country had recorded a huge 37.2% of guest and total of 30.6% of hotel bed occupied. The total number of the guest nights during January-June was 7,662,308, compare to 5,584,850 of the same period during the previous year. During the first half of the said year, the 372 hotels and hotel apartments in the country had recorded total revenue of AED 3.076 billion, compare to the AED 2.059 billion for the same period of the previous year. It had recorded an amazing growth of 49.4% (XTV World 2007).
In 2004, the total number of the available establishment rooms in the country was 26,012, while the available hotel establishment beds available stands at 42,351, showing an increase of 4.2% (XTV World 2007).
The Dubai Department of Tourism and Commerce Marketing or DTCM had announced that the country had a striking and remarkable statistics for the 9 months to September 30 of 2007. It had revealed that the number of guests that are staying in the different hotels in the country had rose to 7% to 5.1%, while the hotel occupancy rates rose 4.1% to reach 86.9% (Dubai Online 2007).
In 2008, there are 50, 306 hotel rooms in the country and the said number is predicted to increase more in order to accommodate the projected increased of the predicted 15 million number of tourists in 2015. During the first quarter of the 2008, the country had shown that it’s well on its way in order to meet its target with the hotel occupancy getting 1,891,253 numbers of international visitors, an amazing increased of 7%, compared to the same period of the previous year. The UK and Ireland market are considered as two of the most important drivers of the said growth, having 224,457, having an amazing increase of 11.3% compare to the same period of the previous year (CNN 2008).
The total 60% of all the hotel rooms in the country that are used to the hospitality market are 4- or 5-star category. Furthermore, the hotels in Dubai have an average occupancy of 85%, which is considered as the highest room-occupancy rates in the world (Go Wealthy.com 2008).
The number of the hotels as well as hotel apartments in the country is expected to increase to 488 by 2010, up from the 452 during 2007. By 2016, the said number is expected to grow to a total of 554, with the room capacity of 127,000.
Conclusion
All of the figures and statistics that have been showed in the paper show the overall development and improvement in the tourism industry of the country. According to the recent report of the World Travel and Tourism Council, the tourism industry of the country is increasing by 14% every year (CNN 2008).
That is the reason as well as the result of the extensive plan and focus of the government in improving their facilities and other projects that are related to their tourism industry. There are about 100 leisure related projects that are worth £35 billion that are currently underway in the country. That is why, the tourism industry accounts for almost a quarter or 22.6% of the overall annual GDP of the country. Furthermore, the said industry is expected to generate a total of £40 billion and contribute to 6.4% directly to the GDP of UAE, at the end of 2008 that will expand to almost £70 billion in 2018 (CNN 2008).
One of the most exciting new development in the tourism industry of the country is the opening of Atlantis The Palm, that was scheduled to open this September 2008, and will be boasted a 50-acre waterscape with a marine park that will feature more than 65,000 sea creatures (CNN 2008). The said establishment is considered as the flagship resort on The Palm Jumeirah, because of its scale, awe-inspiring design as well as wealth of entertainment opportunities, Atlantis, The Palm, will definitely help to boost the country’s premium family product, that will eventually help to increase the number of their visitors that will help to improve and develop their entire tourism and hotel industry.
References
A Current Analysis on the Outlook of Dubai’s Tourism Sector For 2008, Including Insight To Its… 2005, Business Wire, All Business, viewed 3 September 2008, < http://www.allbusiness.com/travel-hospitality-tourism/lodging-hote ls-motels/10187294-1.html>
Dubai’s Hotel Development Defy Economic Downturn 2008, CNN, viewed 3 September 2008, <http://www.ameinfo.com/166162.html>
Dubai Hotel Industry Experiences Room Crunch 2008, Go Wealthy.com, viewed 3 September 2008, <http://www.gowealthy.com/gowealthy/wcms/en/hom e/real-estate/property-digest/january/dubai-hotel-31-01-2008-1208072704625.html>
Dubai Tourism Continues Its Outstanding Growth 2007, XTV World, viewed 3 September 2008, < http://press.xtvworld.com/article1499.html>
Dubai Tourism Statistics Announced 2007, Dubai Online, viewed 3 September 2008, <http://www.dubai-online.com/news/dubai-tourism-statistics-annou nced/>
England, C 2006, Dubai, Explorer Publishing & Distribution
Glaesser, D. 2006, Crisis Management in the Tourism Industry. Elsevier
‘Making the Most of the Opportunities’ 1993, The Middle East, April, no. 222, p. 39
Sinclair, T. & Stabler, M. 1991, The Tourism Industry: An International Analysis. C.A.B. International.
The Globalysis 2008 Travel & Leisure Sector Outlook for Dubai, UAE 2008, Globalysis, Research And Markets, viewed 3 September 2008, < http://www.researchandmarkets.com/reports/c91107>
Travel & Tourism Leaders Forecast Continued Growth for 2008, 2008, World Travel & Tourism Council, viewed 3 September 2008, <http://w ww.wttc.org/eng/Tourism_News/Press_Releases/Press_Releases_2008/Travel_and_Tourism_leaders_forecast_continued_growth_for_2008_/>
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