The UAE leads the Middle East and North Africa (Mena) region in transport infrastructure development even as the country’s diversification strategy has meant that the travel and tourism industry now comprises 3.5 per cent of overall gross domestic product, according to data released yesterday.
Tourism prospects for the UAE remain buoyant this year despite a global restraint on consumer spending following last year’s credit crunch and a weakening US dollar, Jean-Claude Baumgarten,
President of the London-based World Travel and Tourism Council (WTTC) told Emirates Business on the sidelines of the ongoing Tourism Development and Investment Market 2008 in Dubai.
“The UAE’s successful diversification strategy has meant that the country has seen a shift away from oil income and a healthy development of all service sectors including travel and tourism. The buoyant economic growth in the region means the travel and tourism industry comprises 3.5 per cent of the UAE’s overall GDP,” said Baumgarten.
The UAE also witnessed the largest government expenditure in the Gulf region on tourism last year, according to Baumgarten. “The UAE is the regional leader in transport infrastructure development and among the top countries in the world in terms of infrastructure ranking,” Baumgarten said.
The UAE ranks seventh in the world in air transport infrastructure, 12th in the world in terms of roads development and connectivity and ninth globally in terms of port infrastructure, according to WTTC research.
The UAE is followed by Qatar, which ranks 35th in the world in terms of air transport infrastructure, Kuwait which ranks 27th in the world in terms of road infrastructure and Bahrain which ranks 26th globally in terms of port development.
“Expectations in 2007 surpassed the results from 2006 in all areas of tourism activities but UAE has experienced major increase in government expenditure, capital investment and visitor exports,” he said. “Forecasts for the next years will be more stable, I think. The Mena region is well above the world average in terms of the travel and tourism industry industry’s contribution to the overall GDP of the country,” Baumgartner said.
As a percentage of GDP, the travel and tourism industry in the Mena region averages around 13 per cent as compared to approximately 10 per cent on average for the rest of the world, according to WTTC statistics.
“Last year, Qatar witnessed almost a 20 per cent increase in the business travel segment, compared to its own figures in the same segment for 2006, while Oman’s move to increase government expenditure on travel and tourism by almost 15 per cent means the country’s [travel and tourism] industry is likely to see stable and consistent growth over the next decade,” Baumgartner said.
Middle East forecast
The 2008 forecast for the industry’s annual growth rate in the Middle East remained constant from last year’s forecast at five per cent even as the forecast for growth in North America, Europe and Africa took a dip from last year’s forecast on the back of restrained consumer spending.
Baumgartner said that while deteriorating economic conditions, particularly in the housing and credit markets across the globe, increased concerns about prospects for the tourism industry this year, Dubai’s travel industry was more or less insulated from its impact due to the excellent infrastructure and myriad choices for different budget segments.
“The US dollar’s weakness is curtailing the travel plans of residents of dollar-bloc countries but it is boosting their inbound tourism,” he said.
On the rising oil prices impacting the industry’s growth globally, Baumgartner said oil prices will see a downward trend in the first half of this year averaging around the $80-mark.
“Higher energy prices are a two-pronged challenge – they squeeze household budgets and raise the cost of a key input for the industry,” he said.
Reference: Here
In an expanse of gray rock and dust in one of the harshest environments on earth, the United Arab Emirates is about to build what is being described as the world’s first sustainable city, designed by British architect Norman Foster.
The site is far from promising. Far from a polluted sea, a fierce sun raises temperatures to 50?C in the summer, and there is no fresh water, no soil and no animals. But tens of billions of petro-dollars will be poured into these 7km2 of desert on the outskirts of Abu Dhabi.
Called Masdar — “the source” in Arabic — the walled city is intended to house 50,000 people and 1,500 businesses. It will have no cars and be self-sufficient in renewable energy, the majority of which will be solar energy.
The formal unveiling of the desert eco-city was made on Monday at a summit on future energy sources in Abu Dhabi, attended by the UK business secretary, John Hutton, and Prince Andrew.
“It’s extremely ambitious,” said Gerard Evenden, senior partner in Lord Foster’s architecture practice in London, which has had a team working on the design for nine months. “We were invited to design a zero-carbon city. In this harsh place we needed to look back at history and see how ancient settlements had adapted to their environments.”
The buildings will huddle together as in a casbah, and will be cooled by wind towers which will collect the desert’s breezes and flush out hot air. No building will be more than five stories high; the city is to be oriented northeast to southwest to give the optimum balance of sunlight and shade.
It will feel closer to many cities built in the age of the cart and horse. Most roads will only be 3m wide and just 70m long to develop a micro-climate and keep the air moving; roofs will allow in air and keep the sun out in the summer. No one will be more than 200m from public transport, and streets will give on to colonnaded squares and fountains.
ARCHITECT’S DREAM
“We are definitely not imposing a standard international architecture in Masdar. We are aiming to find a balance of light and heat,” Evenden said. “It’s only really hot for three months of the year, but at other times it’s humid.”
It is every architect’s dream to build a new city and Foster’s team say they started from scratch. The idea has been to reduce the amount of energy needed to build it and to live there, and then to let solar energy take over.
“We will start with a large solar power station which will provide the energy to construct the city. Some 80 percent of all the roof space will be used to generate solar power, and because we expect technology to improve as we are building it, we hope we will later be able to remove the power plant. We could `borrow’ energy from outside, but we are trying to prove it can all be generated in the confines of the site,” Evenden said.
The architects are also planning some high-tech gadgetry. The 50,000 inhabitants, and everyone who works there, will move around on one of three levels. A light railway will whizz people to and from Masdar to Abu Dhabi’s forest of glass and steel towers; a second level is reserved for pedestrians; and a third for “personalized rapid transport pods,” described by Evenden as “little vehicles like driverless personal taxis which run on tracks or magnetic discs in the road.”
“It’s a tried technology,” he said. “They are in production in Holland, and used to move containers around in Rotterdam port.”
MONEY NO OBJECT
No clues have been given about the city’s cost, how it will be socially organized and who will live there, but money is clearly no object. Abu Dhabi, the capital of the Emirates, is vying with neighbor Dubai to be the most dazzling Gulf city and the environment is seen as the new card in the deck.
With at least US$1 trillion invested abroad and sitting on nearly 100 billion barrels of oil, Abu Dhabi is the richest city in the world. Its 420,000 inhabitants are theoretically worth about US$17 million each, and they are responsible for more greenhouse gas emissions per capita than any other population in the world.
Abu Dhabi is expected this week to announce a US$500 million deal to manufacture thin-film solar panels to make Masdar a center of the global solar energy manufacturing industry.
“This will be the global capital of the renewable energy revolution. It’s the first oil producing nation to have taken such a significant step towards sustainable living,” said Jean-Paul Jeanrenaud, director of the World Wildlife Fund’s One Planet Living initiative, which aims to develop sustainable communities. But critics have said Masdar is a fig leaf for the rest of the Gulf, heartland of the world’s fossil fuel extraction.
“The numbers must be put into perspective. They are spending welcome billions of dollars on renewables but trillions are still going into climate-changing oil economies. The future is the sun and renewables but there is no time to wait for this revolution,” said Tony Juniper, director of Friends of the Earth.
Reference: Here
Despite repercussions of the ongoing global credit crunch, Travel & Tourism leaders today revealed that the industry will moderately be impacted and signalled continued growth rates for 2008 at a reduced pace.
According to the recent research produced by the World Travel & Tourism Council (WTTC) and Oxford Economics (OE), Travel & Tourism entered this recent period on the back of another solid performance in 2007. International tourism arrivals increased in this year by nearly 6 per cent per cent, totalling to nearly 900 million tourists and marking the fourth successive year that arrivals’ growth has exceeded its long-standing trend of 4 per cent (source: UNWTO).
Furthermore, the research also indicated that tourism spending per capita has more than matched these increases. International air passenger traffic also rose at a record 9.3 per cent (source: IATA) from year to year in November.
WTTC President Jean-Claude Baumgarten stated “tourism growth has been particularly rapid in developing countries with the fastest average growth in tourism arrivals in the Middle East region. These countries are not only recognising the development potential of Travel & Tourism and therefore investing heavily in new infrastructure and facilities but their citizens are also seeing rapid economic growth boost their incomes beyond the level where international travel becomes both a feasible and desired option.”
Dubai Department of Tourism & Commerce Marketing (DTCM) Director General Khalid Bin Sulayem added “a continued policy for tourism has helped Dubai’s Travel & Tourism industry accelerate and this growth will help it also rise above the potential economic downturn.”
Nonetheless the Travel & Tourism industry does face challenges in the year ahead. The deteriorating economic conditions, particularly in the housing and credit markets across the globe are increasing concerns for the industry. However the slowdown is likely to have a limited impact, due to the growth of emerging markets and the easing in monetary policy by central banks.
Higher energy prices are a two pronged challenge as they squeeze household budgets globally and raise the cost of a key input for the Travel & Tourism industry. Baumgarten stated that even this challenge has a positive angle, explaining how “higher revenues are boosting oil producer’ incomes and raising available funds for investment in diversification projects often focussing on tourism’s undoubted potential.”
Dubai certainly represents a nation that has truly embraced Travel & Tourism as a catalyst for economic growth and prosperity. In recognition of the vision and commitment of Dubai Government it will host this year’s Global Travel & Tourism Summit along with pioneering Travel & Tourism companies including DTCM, Emirates Group, Jumeirah International, Nakheel and Dubailand.
The 8th Global Travel & Tourism Summit will be hosted by the Jumeirah Group and will take place on April 20-22, 2008 and will be the world’s most significant public/ private partnership with the objective of driving the agenda on responsibility and the key role that Travel & Tourism plays.
Reference: Here
President Gloria Macapagal-Arroyo is billeted at the Burj Al Arab, the only seven-star hotel in the world and one of the most expensive.
Press Secretary and Presidential Spokesman Ignacio Bunye confirmed in an interview that Arroyo was staying in the Burj Al Arab, but he said that the UAE (United Arab Emirates) Emir is paying for her stay.
“She’s a guest of the Emir,” Bunye said.
Bunye could not immediately confirm who among Arroyo’s delegation, which includes Cabinet secretaries, lawmakers, and local government officials, are also billeted at the hotel.
Rates at the hotel range from 7,500 to 50,000 UAE Dirmams a night. One US dollar is equivalent to around 3.6 Dirhams.
Arroyo is in this city to meet with businessmen and launch investment opportunities for overseas Filipino workers. She arrived on Saturday afternoon and will leave on Tuesday morning.
Sitting on reclaimed land and surrounded by a man-made beach, the sail-shaped Burj Al Arab is an imposing sight on the Dubai coast.
A gold-plated ceiling greets guests at the hotel lobby. Inside, gold-plated arches frame the entrances to luxury shops and restaurants.
Reference: Here
Tenants in Sharjah say they are dissatisfied with the Rent Dispute Arbitration Committee, claiming that its employees lack appropriate knowledge, and that the committee does not protect them from drastic rent hikes.
On June 7, 2007, Gulf News reported that Sharjah issued a law preventing landlords from increasing rent for the first three years of the tenancy contract, then two years for any additional increase.
“I was surprised to be rejected when I contacted the Rent Dispute section who informed me there is no such law,” said Munir Ahmad, who was confused as to whether the law existed or not.
Favouring landlords
Residents pleaded with Sharjah MunicipalitySharjah Municipality to work with the Rent Committee because they said that their decisions are not always satisfactory and usually favour the landlords.
Azya Jamil, a businessman who has operated a women’s clothing shop for six years in Al Taawun Mall, said that he was informed by the owner, the Sharjah Awqaf (Endowment), Department to evacuate the building in 2006.
“Awqaf officials told me that the shopping centre will be converted to a business centre, but why I am the only tenant evacuating? A showroom has been recently leased out to a motor-bike dealer, and the same principle should be applied to them,” he said.
No official letter was delivered to him confirming that the shopping centre would be turned into a business centre.
An official at the Sharjah Economic Development Department said that the conversion of Al Taawun Mall is currently under discussion and that it will take at least two years before any development takes place.
Complaint lodged
Jamil went to the Rent Committee to lodge a complaint and had his contract renewed at the municipality until May 2008.
He said the Awqaf Department then filed a case against him, which led to the Rent Committee rescinding their decision and ordering him to vacate the premises within two weeks. Officials at the Rent Committee refused to comment when contacted by Gulf News.
“[Tenants] should have the proper protection they deserve and we should not be asked to leave if we pay our rent on time. The committee based its decision on the fact that tenants are only protected from being evacuated within the first three years and not after that.”
Abdul Qadir Khader, an official at the Investment Department in Sharjah Awqaf, insisted that the shopping centre would soon be turned into a business centre, but refused to elaborate on how many shops were told to evacuate.
“We wanted Jamil to vacate because he wanted to decorate his shop, and right now we only want to rent out the premises for offices,” Khader said.
Reference: Here
ABU DHABI
Investments of $136 billion (Dh499bn) will be made to develop business and tourism assets to increase visitor numbers from 1.35 million in 2006 to 3 million by 2015. The total value of announced and ongoing projects in Abu Dhabi is close to Dh1 trillion. Around 40 private sector hotels and resorts will be built by 2010.
DUBAI
The emirate aims to woo 15 million business and leisure visitors to contribute 20 per cent of GDP. One of the major upcoming projects is the $1.8bn World Project – a collection of 300 manmade islands modelled on the continents and due for completion in 2010. The Burj Dubai opens in 2008 and the $14bn Palm development is due in 2009.
FUJAIRAH
The emirate is investing Dh3bn over five years to increase the number of visitors. Key development include the Radisson Al Aqah Beach Resort and the Fujairah Paradise residential and tourism complex – both due to open in 2009.
RAS AL KHAIMAH
Plans are in place to attract leisure and industrial sector investment of Dh50bn to quadruple the number of visitors by 2010 to 100,000. Key developments include the Dh2.9bn Al Marjan island hotel, marina and luxury villa complex due to complete by 2011.
SHARJAH
A $62m expansion project has been designed to increase the capacity of Sharjah Airport to 8 million passengers a year. The $18bn Al Nuojoom Islands project will be completed by 2010 to deliver hotel resorts, a golf course, shopping complexes and residential areas.
UMM AL QUWAIN
The Imar Spa has begun offering Overnight Spa Escape packages aimed at Dubai’s residents. The $3.3bn Umm Al Quwain Marina project will provide more than 80,000 homes, boutique hotels, retail and leisure facilities in a marina-themed environment.
AJMAN
The emirate has a 10-year investment programme to boost the economy and tourism by building major roads, transport infrastructure and a metro link to Dubai. After investing $7bn in 2004 and 2005, the emirate plans four major property projects including the $2bn Ajman Marina.
Reference: Here
The number of visitors to Abu Dhabi grew by 16 per cent in 2007 – one of the highest growth rates for the sector in the world. However, the head of the Abu Dhabi Tourism Authority (ADTA) said the emirate does not have enough hotel rooms to accommodate the increase.
A strategic study on Abu Dhabi’s tourism sector conducted by ADTA for 2015 said about 1.37 million tourists visited the capital in 2007, compared to 1.18m in 2006. And the study predicted the sector will host 1.58 million visitors in 2008.
The study said the emirate is likely to see 12 per cent annual growth in the coming years, with three million tourists planning trips to Abu Dhabi by 2015.
However, Director General Mubarak Hamad Al Muhairi said: “The small number of hotel rooms in the capital is the biggest challenge that Abu Dhabi faces in the implementation of its strategic plan.”
“While the number of hotel rooms in the emirate is about 10,000, ADTA’s plan needs to provide 13,500 hotel rooms in 2008, 16,800 in 2010 and 24,400 in 2015.”
In 2007, the number of nights tourists spent in hotels was more than 2.8 million, an increase of 16 per cent over 2006.
The hospitality sector, Al Muhairi said, is not ready for such large growth. “Abu Dhabi needs about 30 new hotels over the next seven years. There are a number of hotel projects that have been announced or launched. Some of the projects were a result of the partnership between the private sector and the ADTA – represented by the investment arm, the Tourism Development and Investment Company.”
Tourism is making up a growing percentage of the emirate’s GDP. “The tourism sector in Abu Dhabi in 2006 contributed Dh8.68 billion to GDP, which accounts for 2.9 per cent of the GDP and 7.1 per cent of the total production of non-oil sectors. We expect the rate of contribution to increase in 2007.”
Hotels in 2006 yielded a return of Dh1.8bn, compared to Dh1.5bn in 2005, with a growth rate of 19 per cent.
Al Muhairi said Abu Dhabi hotels saw a dramatic upswing in returns over the past 10 years and its growth rate is among the highest.
“Returns of hotels in 1997 were Dh700 million, compared to Dh1.8bn in 2006. The five-star hotels had the biggest share of total yields as their returns came to more than Dh1.2bn. The four-star hotels come second with returns of Dh290m.”
Investment in the tourism sector in the UAE is the highest in the Middle East, Al Muhairi said. Qatar comes second, which is also witnessing dramatic growth.
The annual growth rate for tourism globally stands at 4.1 per cent, while the region is seeing an increase of 3.9 per cent per year. Exceptions to the figure include destinations such as Dubai and Abu Dhabi, which have seen growth of more than 10 per cent. European countries and Japan top the list of top 10 tourist markets for Abu Dhabi. In 2006, 8.8 per cent of visitors came from the United Kingdom. Germans came in second at eight per cent, followed by the United States (1.9 per cent), Russia (1.2 per cent), Italy, Japan, Austria, Belgium and the Netherlands.
Reference: Here
The UAE has come out on top of an international index ranking the world’s best destinations for resorts and hotels. The Emirates beat such luxury locales as the Maldives, Australia, Tahiti, and Bermuda in the 2007 Country Brand Index issued by New York-based Future Brands.
The branding consultants, who have offices in Asia Pacific, Middle East, Europe, Latin America and North America, specialise in brand assessments, branding strategy and innovation in a wide range of sectors including travel and tourism, healthcare, finance, aviation and transport.
Lower down in the rankings were well-known holiday destinations including the United States, Canada, Singapore and Malaysia.
The UAE came in second to the United States as the most preferred shopping destination, followed by Singapore, Italy, Japan, France, UK, Canada, Thailand and South Korea.
The index was composed from analysis of new trends, themes and opportunities to rank the top 10 destinations in 22 different categories including history, art and culture, outdoor activities, beaches, natural beauty, rest and relaxation, safety and value for money.
It considered countries that stand out as “strong and successful brands” across the categories, and the rankings took account of qualities that shape a country’s reputation, perception and experiences.
The study found the UAE ranked as the best for resort and lodging facilities because it boasts a wide-variety of hotel accommodation – from family-friendly beach resorts to the world’s only seven-star hotel, Burj Al Arab, in addition to the largest number of new properties under construction.
In Dubai, developments in the pipeline stretch out to 2020 and are in line to deliver 80,000 extra hotel rooms by 2010, with 100,000 people employed in the sector. The UAE’s investment in the tourism industry stands at more than Dh878 billion, with Dubai leading the field with Dh454bn in projects followed by Abu Dhabi with Dh305bn, according to a recent report. The UAE was also awarded third place among the most popular emerging destinations under the category ‘Rising Star’ after Croatia and China, who came in first and second respectively.
For fine dining, the country came in seventh, topped by destinations like France, Italy, Singapore, Japan, the US and UK. The Emirates was also in the top 10 for best business destinations.
The study concluded: “With global wealth and travel becoming accessible to a larger population, we see a dramatic ‘raising of the bar’ in the more affluent tourism sector. The cash-rich ageing population and empty nesters in the Western Hemisphere will drive business for the luxury, indulgence and self-discovery sectors.And places like Dubai are proof that exclusive luxury is alive and well.”
Reference: Here
Today I had visitor from Busan, Korea. She had forgotten a bag of goodies she purchased from the duty free of the Seoul airport.
She realised about the this bag as soon as she reached my home. Me & my wife assured her that she should not panic. We convinced her that Dubai has an efficient system & she was most likely to get the bag back if she only called the right numbers. After 6 or 7 calls, which meant calling a few numbers & holding on for some time ….what a miracle, we were told that her bag was safe with all her items & that she could collect it ASAP.
Within 10 minutes we drove to the airport & got the bag. Our Korean visitor was much impressed..Our visitor will be here with us for a few days. Now that she has been impressed with the city we will try convincing her to invest in Dubai…Will keep you posted.
For those of you, who intend forgetting their cabin baggage, these are the numbers to call if you have landed at Dubai airport terminal I. Tel. No. +9714 2162542 /3 , +9714 2164506
Twin City - Dubai :
Those of you who are curious to know which are the cities which Dubai has teamed up with, here is the updated list as of today.
Dubai signed a twin city agreement with Busan last year. Other cities that are twins to Dubai include Istanbul in Turkey, Geneva in Switzerland, Gold Coast in Australia and Osaka in Japan. Each city has a monument in the Zabeel Park.
Reference: Here
The Abu Dhabi Naturalization and Residency Department (ADNRD) allows issuing of visit visas only for immediate relatives, such as parents, brothers, sisters, wives and children,’ the department’s director Nassir Al Awadi Al Minhali said.
Under the new visa rules, residents of Abu Dhabi can no longer bring their friends and workers to the emirate.
ADNRD will not issue visit visas for companies that are allowed to obtain only employment visas after getting temporary mission permits from the ministry of labour.
A study by the UAE ministry of interior showed that about 25 percent of the illegal migrants entered the UAE on visit visas.