1 Brand : Sustaining its Luxury Image

Andy Heyes1* and Sanjay Nadkarni2 1Stenden Hotel Management School, Leeuwarden, The Netherlands; 2Emirates Academy of Hospitality Management, Dubai,

Introduction from its depleting oil reserves. Vast amounts of investment into real estate, hospitality and The topic of sustainability has been heavily dis- tourism infrastructures has been evident over cussed over the past 30 years. While some may the past 30 years with the city’s constant de- look at the topic through a ‘Re-new,­ Re-use,­ Re-­ velopment transforming the once sleepy fishing cycle’ perspective, sustainability is in fact said to village of Dubai into a metropolis of luxury hos- be seen through a three dimensional lens incor- pitality and tourism conveniences. porating social, economic and environmental is- Further strategic initiatives such as the sues (Cavagnaro and Curiel, 2012). While some 2020 Dubai Expo have led for the need and may see the sustainability topic to be one of no the expansion/increase in capacity of Dubai major concern within their lifetime, others have International Airport, now considered to be the and are continuously looking to think more long world’s busiest airport in terms of total passen- term into the future, protesting and campaign- ger traffic. Dubai has capitalized on its global ing for global sustainable initiatives. Most nota- geographic location and is now considered to be ble calls from campaigners are for stakeholders one of the main hubs, if not the main hub, for to think logically, ethically and morally when it all long-­haul flights between Europe, Asia and comes to the topic of sustainable development. Australasia. Definitions of sustainable development are When it comes to luxury hotels, guests to likely to vary and can also be seen through in- Dubai are not short of options. If anything, it dividual interpretation. Nevertheless, sustain- could be argued there is, in fact, too much choice able development is defined by the Brundtland for guests, as the expansion and development Commission 1987 as development that meets of luxury hotels has continued to grow since the needs of the present without compromising the turn of the millennium. The introduction the ability and the needs of future generations. of luxury hotel brands into the Emirates, such For Dubai, some could say its government is in as Four Seasons, Fairmont and Shangri La, let fact looking not only at sustaining current devel- alone home-­grown luxury hotel brands such opment initiatives but also generating a better as Jumeirah, has continued to grow, with many future for forthcoming generations through sub- brands adding a Dubai hotel to their expand- stantial investment in long-term­ strategies away ing portfolio. Most notable hotels to mention

*Corresponding author: ​andy.​heyes1@​stenden.​com © CAB International 2020. Sustainable Destination Branding and Marketing: Strategies for Tourism Development (eds A. Sharma et al.) 1 2 A. Heyes and S. Nadkarni

must surely be the , ’s metropolis strategically located in an otherwise first hotel solely built on a human-­made is- unstable region. land, and the Armani Hotel situated within the Dubai’s case is anything but an example of , the tallest building in the world. overnight success. Since the 1900s, Dubai has Such monumental and iconic hotels, included been the principal trading port and entrepôt in in Dubai’s portfolio of luxury hotels, showcase the region. The formation of the the Emirates’ desire to separate itself from other United Arab Emirates in 1971, comprising seven destinations, by putting Dubai firmly on the map emirates of which Dubai is one, provided a con- as the world’s most luxurious and extravagant ducive socio-­political environment to accelerate tourist and hospitality destinations. The only economic growth, which, despite cyclical down- problem, however, is that the term ‘luxury’ turns, has been on an upward trajectory. is, in the context of tourism and hospitality, a Dubai has several sectors that contribute to loose term, with no international standards its economic growth, one of which is the travel or definition currently in existence that define and tourism industry. Its geographical location a luxury hotel or destination (Melissen et al., coupled with an effective branding strategy spear- 2015). 'Luxury' can be used freely by the sup- headed by Emirates Airlines has significantly con- pliers themselves, and it is suggested that such tributed to the Dubai growth story (DED, 2018). self-­classifications are predominantly used to An estimate by The First Group (TFG, 2017) pegs position an establishment/destination within the tourism sector’s contribution to Dubai’s total a strategic market against fellow competitors. Gross Domestic Product (GDP) at 8.7%. Similarly, however, the temptation to expand is For a growing number of tourists, Dubai also common with luxury ‘brands’ as they look is known to be the go-­to place to experience to grow within mass markets. It is this expan- luxury. Given the diversity of its residents, an sion, however, which, while probably economi- overwhelming majority of whom are expatriates cally rewarding in the short term, may in fact be from over 200 countries, as well as its visitors, damaging to the brand’s luxury image and repu- the city constantly aims at providing the newest tation in the long term. and most exciting entertainment options and This chapter will look at the sustainable na- business opportunities. International visitor ture of the ‘Dubai Luxury Brand’ and its ever-­ spend in Dubai stood at US$31.3 billion in 2016, expanding hospitality and tourism industries, placing it in the top slot among peer destinations raising arguments about its long-­term sustain- ranked in the Global Destination Cities Index ability as a luxury destination. Evidence and jus- (MasterCard, 2016), with London, a distant sec- tification for such arguments will be based on a ond with a spend of US$19.8 billion. The high comprehensive review of known literature and visitor expenditure cements Dubai’s reputation a narrative/analysis of industry relevant data as a luxury cornucopia. The ramping-up­ of in- analysing the Dubai hotel and tourism markets. frastructure and addition of a slew of attractions The story begins with a narrative looking at in the run-up­ to the upcoming Expo 2020 points Dubai’s history and its ever-expanding­ hospital- towards a surge in tourist volumes. Mega attrac- ity and tourism markets. tions in the pipeline include the Marsa Al Arab, which is planned as a mega tourist resort in the proximity of the iconic Burj Al Arab, IMG World of Legends theme park and a Formula One Dubai: The Story So Far theme park. The Dubai Department of Tourism and Commerce Marketing (DTCM), which is In the contemporary context, ‘brand Dubai’ the Regional Tourism Organisation for Dubai, evokes images of bling, opulence and over-­the-­ has drawn up an ambitious ‘Tourism Vision for top excessive luxury, a cornucopia of sorts and 2020’ plan aimed at drawing 20-million-­ ­plus a bustling oasis of economic activity, that has tourists for Expo 2020, and the city seems to leveraged its geography to position itself as a be on track to achieve this target. The first half trading hub long before oil was discovered in of 2017 attracted over 8 million visitors, repre- the region. Suffice to say, unlike many of its re- senting a 10.6% growth over the correspond- gional peers, Dubai is a vibrant, cosmopolitan ing period in 2016 (DTCM, 2017). As Jauncey Brand Dubai: Sustaining its Luxury Image 3

and Nadkarni (2014) have pointed out, Dubai’s International Airport before commencing the bid document, ‘Connecting Minds, Creating the next leg of their journey. For those touching down Future’, envisages the Expo 2020 event as creat- and staying in Dubai, the availability of hotels and ing new partnerships for sustainable growth on accommodation sources makes for interesting the back of seamless connectivity, state-of-­ ­the reading. Visitors wanting a piece of the luxury life- art logistics and world-class­ infrastructure. The style are far from short of options when it comes aspect on sustainability, a key value proposition to luxury accommodation, with even more luxury of Dubai’s Expo 2020 bid, deserves particu- hotels set to open in the near future. lar attention given its seeming incompatibility A trend analysis of hotel room capacity in with luxury, the quality and quantity of which chain hotels factored with respect to hotel class in Dubai entails copious consumption of re- reveals the overwhelming growth of luxury and sources. Researchers estimate that the hospital- upper upscale segments in relation to the rest. The ity segment contributes around 21% of tourism data, sourced from Smith Travel Research (STR), sector’s carbon footprint. The importance of un- precludes independent hotels. As illustrated in derstanding hospitality’s environmental impact Fig. 1.1, the year-on-­ year­ change in room’s ca- and means of controlling it should therefore not pacity demonstrates a preponderance of growth be overlooked (Ali et al., 2016; de Grosbois et al., at the luxury end of the spectrum. This trend is 2011). Against the backdrop of an accelerated in line with the image of Dubai as a go-­to luxury thrust in developing logistics, infrastructure, destination. The growth in capacity of rooms in connectivity and knowledge (LICK) economy, economy hotels is almost flat. It can therefore be where does sustainability stand? Revisiting the conjectured that, for investors, it is a matter of im- caveats on the sustainability of the ‘Dubai mod- age and perceived higher returns on investments el’ flagged by Bagaeen (2007), it is of interest in luxury assets which results in such lopsided to note that the doubts cast a decade ago have trends. The pipeline data shown in Table 1.1 fur- come unhinged as Dubai manages the fine bal- ther reinforces this conjecture, notwithstanding ancing act of ‘sustainable LICK’ growth through the authorities’ efforts to address this imbalance. a slew of policy initiatives encompassing green Pragmatic policies coupled with efficient buildings, clean energy and environmental implementation strategies on part of Dubai’s gov- tourism (DED, 2018). The decision to look at the ernment have been the key growth drivers in the environmental sustainability model is familiar; hospitality and tourism sector. The extent of invest- the marketability of Dubai’s luxury sustainabil- ments accruing is a testimony to the investor opti- ity model is, it seems, still under consideration. mism in the sector and in the larger Dubai growth Figures and statistics recently released show story. how Dubai is preparing for even further growth, The growth in hotel capacity and tour- as well as highlighting the importance of the ism assets imposes a challenge on the industry tourism and hospitality industry to the Emirates’ stakeholders to ensure that social, economic and long-­term longevity. environmental sustainability measures are fac- tored in line with government policies. The chal- lenge is particularly stark at the luxury end of the spectrum, given its resource intensive nature Hospitality and Tourism – The Luxury to ensure guest comfort (Butler, 2008; Halbe and Supply Parker, 2012). A study by Rosalind Jenkins and Karanikola (2014) revealed that under 50% of With targets to host more than 20 million visi- Dubai’s hotels with an average star rating of 4.2 tors by 2020 ahead of the world Expo, plans are reported on sustainability initiatives, which are well underway to accommodate such numbers. managed under corporate social responsibility ini- The expansion of Dubai International Airport in tiatives. As emerging regulatory guidelines push 2016, now said to be the largest and busiest air- Dubai hotel operators into sustainability targets port in regard to footfall in the world (Mohamed on a mandatory rather than a voluntary basis, et al., 2018), can be regarded as the gateway sustainable luxury through the three-point­ lens from where the Western world meets the East, of social, economic and environmental sustain- with many long-­haul flights landing at DXB ability (Beckham and Voyer, 2014) will be the key 4 A. Heyes and S. Nadkarni

Hotel room supply trend (ex-independent) "350 y "250 "150 Econom "50

"5,600

"5,000

Midscale "4,400

"5,000

"4,400 Upper Midscale "3,800

"8,800 "8,000 Number of rooms sold "7,200 Upscale "6,400

"15,500 "14,000 "12,500 Upper Upscale "17,000

y "15,000

Luxur "13,000 "11,000 2012 2013 2014 2015 2016 2017

Fig. 1.1. Year-­on-­year segmental growth. From: Smith Travel Research. growth driver in the run-­up to Expo 2020 and statement, and given the media highlighting fur- beyond. Any increase in cost of operation on ac- ther development within the UAE’s hospitality and count of sustainability initiatives will be more than tourism industries, there is potentially no ending offset by guests’ growing proclivity to choose a ho- for what is to come beyond 2020. tel with green credentials (Anuwichanont et al., 2011; Cervellon and Shammas, 2013). Thus, the evolving scenario provides an opportunity for Looking Further Ahead – Further Dubai’s industry to position itself in a lead role Development in sustainable luxury. But is such a role possible? As will be discussed later in this chapter, the con- Looking further ahead into the future, according cept of luxury is contradictory to the sustainable to the WTTC (2016), it is estimated and planned

Table 1.1. Forthcoming hotel projects in Dubai. Class In construction Final Planning Planning Unconfirmed Luxury 14 2 8 1 Upper Upscale 19 4 17 1 Upscale 17 15 11 2 Upper Midscale 17 6 5 1 Midscale 4 2 3 Economy - - - -

From: Smith Travel Research. Brand Dubai: Sustaining its Luxury Image 5

that by 2027, a total of 31 million visitors will few. The global phenomenon of Airbnb, which enter the United Arab Emirates for business or has swept across the world, is unfortunate for leisure travel, generating an estimated 74.6 bil- Dubai’s hotel industry. lion AED to the country’s economy. It is estimat- Airbnb and similar economy platforms in ed that 77.4% of this incoming revenue is likely global hotspots have received wide attention to be international leisure spending from tour- (e.g. Oskam and Boswijk, 2016; Hansen et al., ists vacationing in the UAE. 2016; Roblek et al., 2016). Dubai has not been In response to the expected increase in the immune to this phenomenon. That said, it has number of tourists, Dubai’s hotel room inven- played out rather differently in Dubai when com- tory is witnessing an upswing with inventory pared with the legal and regulatory push back in excess of 104,000 rooms in the first half from industry lobbies and city governments in of 2017 (DSC, 2017). The aim of the destina- London, New York and other major destinations tion, as published by the Dubai Tourism and (Einav et al., 2016). In a show of pragmatism, Commerce Marketing (DTCM), is to increase the the DTCM signed an agreement with Airbnb hotel supply to between 140,000 to 160,000 that would allow the platform to provide vetted rooms by the end of the year 2020. The hospi- listings of apartments and villas ranging from tality industry, however, saw a decrease in the budget to luxury, which would address potential occupancy and Average Daily Rates (ADR) in security concerns, ensure compliance with lo- the same period, attributed to the increase in cal regulations and raise awareness of the posi- available hotels within the destination. In the tive impact that Airbnb would have on Dubai’s future, a higher supply over the demand rates economy. The increasing popularity of Airbnb in tourism will threaten Revenue per Available in Dubai is attested by the phenomenal growth Room (RevPAR) figures for all hotels in Dubai of listings at 107% annually which have crossed (JLL, 2017). 5000 rental apartments and B&Bs (Airdna, Considering the forecasts mentioned, there 2017). is a high threat of new entrants into the desti- With reference to Table 1.2, the interesting nation for already established hotels, as the in- attribute about this growth story is that, in con- crease in supply will consequently condition the trast with comparable destinations like London, success and profitability of the existing hotel of- New York and Singapore, the type of listings in ferings. Unfortunately, this is something which Dubai are comparatively skewed at the extremes, may well happen. with the global peak of the data set in ‘Entire Home’ category for Dubai and an average daily rate (ADR) of US$154, ranking below New York Shift in Strategy – Increase in Budget and London. Thus, a high proportion of entire Hotels and Airbnb homes and a comparatively lower ADR provides anecdotal evidence of ‘affordable’ luxury in the Dubai’s new strategic vision, which looks to shift shared economy segment of Dubai’s accommo- their development direction into the mid-­market dation sector. hotels, can be said to support Dubai’s entrance With an overwhelmingly large expatriate into a new era by providing accommodation and population, home ownership rates among resi- services to the masses rather than the privileged dents are low and, consequently, the demand for

Table 1.2. Type of Airbnb listings. Destination ADR Entire Home Private Room Shared Room Dubai $154 64% 29% 7% London $171 52% 46% 2% New York $177 51% 46% 3% Singapore $138 48% 47% 5%

From: Airdna, 2017. 6 A. Heyes and S. Nadkarni

rental homes is high. This aspect attracts global While readers are likely to note that the au- investors to purchase real estate in Dubai. Some thors continue to question the continuation of of this inventory has trickled down to the shared Dubai’s luxury appeal, what has not yet been economy by way of Airbnb listings. discussed is the complexity of defining luxury This supply increases not only from Airbnb, and operating within such markets. Thus, it is but also from the growing hotel construction now time to take a somewhat philosophical look sector, resulting in a concern for a decreased at our story, bringing in evidence to justify the ADR across the lodging industry. The Hotelier authors’ way of thinking. Express Summit 2016 Advisory Panel discusses this phenomenon, pointing out the increased emphasis on mid-­sector development. The in- ternational hospitality sector is affected, as any What is Luxury? other industry, by the global economic shift and, therefore, destinations such as luxury-oriented­ To begin, we should first look at defining luxury. Dubai have developed their market towards Amusingly, however, to come to a singular defi- more inexpensive products and services. Hilton, nition of the term can be difficult. Agreed, the for example, is working on establishing more authors of this chapter are not in a position to mid-­segment brands in the region. In 2015, say whether Dubai is or is not a luxury destina- 44% of rooms introduced to the market were tion – that is for the reader to decide. Some sug- in the mid-­range category. A study published by gest Dubai is seen as a non-luxury­ destination, Jones Lang Salle (JLL, 2017) explained the ho- however this is based on individual interpreta- tel industry in Dubai has reached a saturation tion. The phenomenon has been and continues point in the luxury segment, and it is now be- to be a heavily researched topic in academic ing rivalled by the growth of lower-­grade hotels. journals, as well as in leading industries includ- These new 3-­star (or fewer) properties provide ing hospitality and retail. More recent studies rooms with a more competitive price to attract a have looked to produce a more theoretical un- larger market segment. derstanding of the phenomenon (Cristini et al., The question that merits attention is 2016), with the aim to formulate a more scien- whether this additional capacity will depress the tific and theoretical understanding of the elusive hotels’ bottom lines, which are already under concept. pressure on account of the growing pipeline; As we begin to explore and read into the or will it complement the hotel supply by cater- concept, common variables associated with ing to hitherto untapped markets comprised of the term are far from surprising. Stereotypical those seeking ‘affordable luxury’ in Dubai. The definitions suggest the importance of high qual- introduction of these properties, and the attrac- ity, comfort, excessive in nature and a form of tiveness to tap into larger segments, may well be sophistication (Frank, 1999; Thomas, 2007; seen to be an ideal business to capitalize on in Bellaiche et al., 2010; Hoffman and Coste-­ growing revenue streams; nevertheless, it can Maniere, 2012). also be argued that such a strategic move is in Earlier writings are keen to highlight a so- fact damaging and diluting the luxury appeal cial hierarchy, with luxury said to be only made which Dubai has taken many years to build. available and accessible to those with high social So far the narrative given in this chapter status (most notably those linked to royalty) and has given an understanding to current and fu- thus high economic leverage. It is through this ture projections of the city’s growing hospitality scenario that society has come to expect luxury and tourism scenes. While such statistics seem to be of high expense. As is argued by Hennings remarkable, it is, however, both the saturation of et al. (2012, p. 31), ‘true luxury is only avail- luxury hotels within the city along with further able to a few and desired by many’; that is to say, emphasis on the growing portfolios of budget therefore, for anything deemed luxurious, there hotels (as well as the introduction of Airbnb) should be an element of exclusivity, justifying which causes the authors of this chapter to high prices. Further literature suggests that the raise questions behind the sustainable nature of integration and portrayal of exclusivity is of Dubai’s luxury image. paramount importance to luxury companies, Brand Dubai: Sustaining its Luxury Image 7

in that it is ‘rareness and exclusivity [that] are of Dubai, we should start to think who told us in- the abiding characteristics that often define and dividually that Dubai was a luxury destination. make luxury goods more desirable’ (Nwankwo Eventually, answers are likely to head back to et al., 2014, p. 738). Furthermore, the need third-­party sales companies, no doubt! Through for price is essential in maintaining a luxury so-­called psychological interest as mentioned categorization in today’s society, as quoted by by Berry (1994) by just using the term luxury, Kapferer and Laurent (2015, p. 333), ‘price is one could assume that the consumer becomes central in the perception of luxury’, with expen- interested in experiencing and understanding siveness argued to be the first characteristic that what makes such a product or service different consumers look for and associate with luxury to any ‘normal’ alternative, while the constant (Dubois and Paternault, 1995). personal need to feel different and grander than Studies on the relationship between price, others entices individuals to invest their money luxury and exclusivity show mixed findings on in such goods and products. how the three concepts work simultaneously We can assume, therefore, that luxury is a (Heyes and Lashley, 2017). Nevertheless, the sociologically constructed concept which is mar- effects of exclusiveness and rarity have a posi- keted by the producer, deemed luxurious and tive correlation on prices which are able to be thus ‘useful’ for the image and social status of charged; that is to say, the more exclusive and the consumer. rare a commodity is, the more expensive it is like- Nevertheless, the accessibility of a product ly to be and the fewer the people able to afford it. can quickly jeopardize a product or service’s Through the benefit of money, individuals luxury image. As popularity and the desire for have been, and are still to this day, able to buy growth continues, society’s interpretation of expensive and attractive goods to showcase their such a product or service is also likely to change wealth and, simultaneously, their success in over time. That is to say, the more common a life, usually through consuming conspicuously commodity becomes, the more ‘normal’ it be- (Veblen, 1899). Luxury, then and now, is seen comes, thus losing its luxury image. In hypothet- and used as a positive commodity to the eyes of ical and business terms, therefore, as one luxury the social masses denoting history, tradition and becomes normality, the next desired product or a pampering buying expense (Thomas, 2007). service needs to be in motion, suggesting that Nevertheless, while most people may as- the luxury concept is a phenomenon which is sociate luxury with the tangible commodities seen by the eyes of the present day, but fuelled by which go along with the term, luxury is in fact the thoughts of the future (Gardetti and Giron, a concept that is empowered by the intangible 2014). But why is there such a desire to expand personalized nature of the individual. As Berry and grow rapidly within a luxury market? (1994) states, anything deemed luxurious must An answer to such a question is still rela- have a sense of desirability towards it; that is to tively unknown. However, it could be assumed say, an individual must have a genuine want and that such business leaders who make these de- need for the item or service when consuming. cisions are not in line with knowledge or un- Berry’s statements begin to unpack the luxury derstanding about the luxury concept and the phenomenon further, highlighting a strong psy- factors which have been mentioned in this chap- chological attachment to luxury. ter. It is only recently, however, that we can begin This personalized nature towards luxury to argue that the expansive nature of the offer- and its definition therefore raises questions of ings of many businesses has come into force. where, how and why society has come to associ- ate such things with the term. The most realistic reason for this can come from the thoughts of Twitchell (2002), relating to the marketing pow- Falling Into the Trap: Masstige vs er and connotations associated with the word Exclusivity ‘luxury’ itself. The term luxury in this case can be seen to be mainly used for marketing initia- While the turn of the millennium has been tives, used to attract interest from consumers to regularly regarded as the turn of the experience entice greater chances of purchasing. In the case economy (Pine and Gilmore, 1999), researchers 8 A. Heyes and S. Nadkarni

of luxury could also suggest it was the dawn of potentially falling into the trap of wanting more, the new luxury era. and in effect losing its luxury categorization. The increase in middle-­class wealth and, Evidence suggests that Dubai has indeed thus, economic expenditure has also meant an fallen into the masstige trap associated with increase in luxury consumption through the the 21st-century­ luxury world; that its ever-­ purchasing of goods and services (Yeoman and expanding portfolio of hotels, its increase in a McMahon-­Beattie, 2006; Hoffman and Coste-­ more affordable accommodation setting and its Maniere, 2012). The emergence of the so-called­ consistent development of opening its borders ‘masstige’ luxury strategy now looks to target to millions of visitors is making brand Dubai middle-­market consumers with reasonable and more accessible than ever before. The negative affordable prices to increase sales around the effects of such are already being seen in the de- world (Truong et al., 2009), with brands still crease in Revenue per Available Room (RevPAR), adamant about retaining their luxury brand im- Occupancy Rates and Average Daily Rates (ADR) age while mass-­producing and selling to a great- corresponding to the growth of the market, with er target market. The dawn of this new luxury premium prices now more difficult to charge era, some could also argue, was powered by the than ever before. While some may well argue increase in technological advancements, with that this is as simple as the supply vs demand ar- luxury products being enhanced by new inno- gument which has been circulating the industry vative and creative designs previously unseen in for decades, the more critical thinkers among us years gone by (Gardetti and Giron, 2014; Riley may well see this as the beginning of the decline, and Szivas, 2015). The future of luxury is still to as more competition and affordable prices take be invented, perhaps, yet the need for brands to over what was once regarded a destination only think innovatively, systematically and entrepre- fit for the wealthy. In the philosophical world neurially is a must if they are ever going to com- where luxury exists, Dubai is bordering on the pete in such a competitive market. Nevertheless, edge of risk and uncertainty – should Dubai with the masstige markets now out there, the be marketed as a luxury destination with high somewhat exclusive element of their offerings is prices, or should prices be driven down and the slowly diluting. The question therefore remains region made accessible to greater numbers at – what is luxury in the 21st century? The an- the expense of damaging its carefully built repu- swer has 7 billion different interpretations! tation? The latter certainly seems to be the case. Long gone are the days when only the rich and the famous could go to Dubai (a key element associated with luxury in the past); nowadays The Future of Dubai and Its Luxury it has never been easier to visit and enter Dubai Image whether through transit or through long-­term vacationing. Away from the academic side of luxury, the big- Therefore, the ultimate questions that re- gest question arising from this chapter, and one main are: Is Dubai’s vision and determination which the authors have been discussing among to grow damaging to its reputation as a luxury themselves for the past two years remains: what destination? Will the thought of visiting Dubai is exclusive about Dubai? The authors have a become a matter of normality rather than a concern that Dubai’s consistent over-exposure­ rare treat? Will Dubai continue to attract the and plans for further development may benefit ultra-­rich in a market filled with mid-scales­ and Dubai in the short term, but long term, its effects budget hotels? Fast-forward­ a decade or two and may well see the now luxury destination regard- maybe we will have our answer! ed as just another tourist haven. Earlier in this chapter, we discussed Dubai’s growing forecasts of inbound tourists and hotel projections. Based on the review of the known Conclusion literature surrounding the concept of luxury, as well as Dubai’s continuous development plans, it There is no doubt that the Emirate of Dubai with- could be argued that Dubai is a ‘brand’, which is in the United Arab Emirates is a prime example Brand Dubai: Sustaining its Luxury Image 9

of a destination which has gone through con- sustainability of constant investment towards sistent strategic and political change over the Dubai’s efforts of marketing itself as an ultra-­ past three decades. What was once a sleepy fish- luxury destination. ing port is now, arguably, a hub for international Based on theoretical understanding and tourists. academic and industry research, still the illu- As it set out its progression to become the sive power of exclusiveness and the psychologi- optimal luxury tourist attraction, investing bil- cal effects it has to attract the rich and wealthy lions of dollars into real estate, social infrastruc- continue to play a part in the concept of luxury. ture and education and training to equip the Coupled with grand and over-­the-­top showman- region with the required resources to sustain ship in pursuing initiatives such as the Burj such growth, Dubai has quickly catapulted itself Khalifia and the Burj Al Arab, Dubai has exploit- into the 21st century with its innovative and en- ed its marketing potential to its best advantage, trepreneurial concepts. attracting millions of visitors from all over the Now, as the further construction of ho- world to witness the spectacular human-­made tels and supporting tourism and leisure facili- creations. Yet with its continuous exposure, ties continues ahead of the World Expo 2020 questions are being asked by the authors of this and its forecasted 20 million visitors (a far chapter: what is exclusive about Dubai? Will cry from that sleepy fishing village), Dubai’s Dubai still be regarded as a luxury destination exposure and accessibility to the world has in the future? With the constant reinvention of never been greater. While Dubai’s vast invest- luxury products and services, the next ultra-­ ment and technological advancements can luxury destination may well be elsewhere. Is be seen to push the Emirate into the modern Dubai’s desire to grow in fact diluting its luxury era, this chapter has looked to criticize the appeal? Only time will tell.

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