20 | Feature Tourism

Building Tourist Attractions Culture and heritage take centre stage as diversifies its tourist offerings, writes Alicia Buller.

ourism is a cornerstone since the emirate started keeping of Abu Dhabi’s records. From January to August, diversification drive visitor numbers grew 13 per cent with clear strategies and year-on-year to 1.75 million. Revenue targets in place. The aim is to attract increased 17 per cent to AED3.31 Tthree million visitors per year by billion and occupancy levels rose 2015 and 7.5 million by 2030. Abu eight per cent to 68 per cent. Dhabi is proud of its culture and “These results make encouraging heritage, which explains why these reading when viewed against aspects are central to its strategy of the fact that hotel inventory in showcasing itself as a high-end yet the emirate has grown from 137 affordable tourist destination where properties and 23,613 rooms in 2012 visitors can engage in world-class to 146 offering 25,300 rooms this business and relax. year,” said Mubarak Al Muhairi, Focusing on tourism provides the Abu Dhabi Tourism & Culture a number of advantages for Abu Authority’s (TCA) Director General. Dhabi’s economy. Al Muhairi was also optimistic Many of the companies that for the rest of the year. operate in the tourism sector fall “With a final quarter ahead of us within the category of small and that is packed with major events, medium business enterprises (SME), including the Abu Dhabi Grand Prix, which supports Abu Dhabi’s stated Abu Dhabi Art, the Seatrade Middle goal of diversifying its enterprise East Forum and the Aerobatic base and creating more jobs. Tourism Show, we could see the best results is also seen as a way to boost foreign of the year yet,” he said. currency earnings and improve the Looking ahead, Abu Dhabi’s international profile of the emirate. tourism numbers should keep rising This strategy appears to be as major projects are finished. In one working as Abu Dhabi’s tourism way, it could be argued that Abu sector has had a record year so far, Dhabi is attempting to emulate the with August being the best month Bilbao effect where the Guggenheim Tarak Parekh Tarak Illustrations by The Economic Review | 21

Museum became the catalyst that contribute to its economic growth.” put the Spanish city on the world Has this ‘build it and the visitors map. But that would be wrong on will come’ approach proven many levels as Abu Dhabi is already successful in other destinations well known internationally, it has beside Bilbao? Keez Hartzuiker, a flourishing economy, and it is CEO of Roya International, said definitely not relying on just one “While the ‘build it and they will project to boost tourism numbers. come’ approach seems a riskier one A prime example is Saadiyat, to take given the costs associated, a natural island 10 minutes drive there is no doubt that this model from downtown Abu Dhabi. In has proven successful in numerous its essence, Saadiyat is a multi- cities before. Some examples would faceted island destination offering include Las Vegas and Macau. a great variety of attractions to Both cities were largely manmade different people. A business hub for and, in spite of a lack of natural international commerce; a relaxed geographical or historical elements, waterfront home for residents; a have become references in tourism cultural magnet for arts aficionados; and been successful in maintaining the home of dazzling architectural year-round activity.” icons; and a pristine beachfront This approach has also worked tourism destination. in creating new tourism segments, The centrepiece of Saadiyat is according to Tea Ros, Managing While the ‘build the Cultural District, which will Director of Strategic Hotel it and they will open with in Consulting. She cites the growth of 2015, followed by Zayed National medical tourism in Thailand, which come’ approach Museum in 2016 and Guggenheim was driven by building new, high- seems a riskier Abu Dhabi in 2017. end hospitals. The government’s one to take Ahmed Al Fahim, Executive investment into developing the Director of Marketing, Cleveland Clinic Abu Dhabi on given the costs Communications, Sales and Leasing indicates a clear associated, there at the Tourism Development & interest in the medical tourism sector. is no doubt Investment Company (TDIC), said: A unique aspect of Abu Dhabi’s “The development of the Cultural tourism push is the high degree that this model District will contribute hugely to of government involvement and has proven the development of Abu Dhabi backing in creating the necessary successful in as regional centre for culture, and tourist infrastructure. The TCA, it is aimed at transforming the which is 100 per government-run, numerous cities emirate into a hub of world cultural has many responsibilities, which before. exchange. The museums will include managing the emirate’s breathe life into the art and cultural tourism sector, marketing Abu scene and attract visitors, exhibitors, Dhabi internationally, attracting collectors and performers from investment, and developing around the world. This new aspect museums such as the Louvre of Abu Dhabi will, without doubt, Abu Dhabi. TCA is the sole 22 | Feature Tourism

shareholder of the TDIC, the balance supply and demand,” master developer of major tourism Hartzuiker says. destinations such as Saadiyat The scale on which the TCA Island. By creating investment and TDIC function is made partnerships and joint ventures, clear by , which TDIC’s developments are helping will eventually be home to an Abu Dhabi realise the emirate’s estimated 145,000 residents with considerable tourism potential. a full complement of leisure In most countries the government and tourism facilities, as well as is overshadowed by the private civic and cultural institutions. sector, which plays a more active The 27 square kilometre island role in tourism development and will have seven districts and a investments, according to Ros. developed area of 2,600 hectares “The high degree of government when work is completed. involvement may be an advantage, Saadiyat Beach is one such provided that there is a well-defined district with its nine kilometres strategy, marked direction and clear of unspoilt coastline, which will communication and distribution be home to nine five-star hotels of responsibilities between various and luxury residential properties. parties,” she says. The Saadiyat Beach Golf Club was “Working closely together inaugurated in 2010, while last year and allowing for government St Regis Saadiyat Island Resort, involvement will help pace the Park Hyatt Abu Dhabi Hotel and growth of infrastructure, strengthen Villas, and Monte-Carlo Beach the city’s branding as well as Club opened. New hotel and spa projects from hotel groups such as Shangri-La, Rotana and UAE-based Abu Dhabi: developer Bin Otaiba Investment Hotel Establishment Statistics Group are in the pipeline. January to August 2013 Figures Sustainability, maintaining the Source: TCA Abu Dhabi beauty of the emirate and marketing this beauty are an important part of the TCA and TDIC’s remit. 13% The TDIC works closely with increase in guests to 1,755,730 Environment Abu Dhabi (EAD) and ensures that all contractors working on its projects have an environmental management 25% plan before commencing increase in guest nights to 5,480,742 work on site.

10% 1 2 3 0.12 increase in average length of stay to 3.12 days 08% increase in occupancy level to 68%

increase in revenue 17% to AED 3.31 billion The Economic Review | 23

In the Western Region, Sir Bani and real estate industry,” says the is being developed as TDIC’s Al Fahim. The projects on a leading nature-based tourism “In recent years, we’ve noticed Saadiyat and destination. This nature and that international travellers who wildlife reserve is currently home come to Abu Dhabi and the region to the five-star Desert Island Resort are first and foremost looking for a aim to enrich & Spa by Anantara, as well as cultural experience. These tourists people’s lives Anantara Al Yamm Villa Resort want to walk away with a unique with its 30 luxurious beachfront experience, enjoy an adventurous whilst meeting villas. In the near future, the island trip and have an interesting story the needs will also host Anantara Al Sahel to tell by the time they’re ready to of a rapidly Villa Resort, which will afford leave,” he says. guests a rare view of grazing sand The further development of Abu growing , as well as Arabia’s elusive Dhabi’s cultural offering is sensible tourism and mountain and . given the wealth of history and real estate In addition, Qasr Al Sarab heritage in the emirate, according to Desert Resort by Anantara in the Ros. However, she believes that this industry. Liwa desert has been designed should not come at the expense of with a clear focus on Arabian culture other areas of tourism. and heritage. This destination “Abu Dhabi also has excellent reflects the history and traditions opportunities to diversify its of the region while offering tourism offering to appeal to tours through the archaeological families, adventure travellers and sites, as well as traditional tourists interested in nature and desert activities throughout the an unspoiled environment. The spectacular Empty Quarter. diversification efforts should not “Our portfolio of projects be mutually exclusive but rather embraces all aspects of Abu promoted hand-in-hand,” says Ros. Dhabi’s heritage and culture while preserving its natural beauty and resources. The projects on Saadiyat and Sir Bani Yas aim to enrich people’s lives whilst meeting the needs of a rapidly growing tourism

The Bilbao Effect The ‘Bilbao effect’ (also known as the a holistic plan. It created a new subway line ‘Guggenheim effect’) refers to the cause and and an airport. New residential, leisure and effect relationship that occurred when a single business complexes were built in town while world-class project became the catalyst for the riverfront was renovated. The icing on the reviving an economically distressed, post- cake was the construction of the Guggenheim industrial city in Spain’s Basque country. It Museum Bilbao and additional cultural was the opening of architect Frank Geary’s investments as a means of diversifying the masterful Guggenheim Museum in 1997 that economy and reducing unemployment. catapulted Bilbao onto the world stage. The Guggenheim Bilbao began drawing When it was decided in the 1990s to spend international visitors almost immediately after $228.3 million on a modern art museum, its opening. In its first three years, almost four critics objected to squandering so much million tourists visited the museum, helping public money on something so irrelevant to generate about €500 million in economic and exclusive. But Bilbao did not construct activity. While the Guggenheim Museum the museum simply for the sake of having an Bilbao was a costly venture, its return on iconic building; it was one answer in a quest investment (not including the value of the to address a number of serious problems permanent art collection) was complete as such as high unemployment, the demise of early as seven years after opening. Figures traditional industries, poor public transport show that since the museum’s opening, the and urban deterioration. city has received an average of 779,028 new The city tackled these problems through yearly overnight stays. 24 | Feature Tourism

Abu Dhabi: Hotel Establishment Inventory As of August 2013 Source: TCA Abu Dhabi

Abu Dhabi Establishments Rooms 5 Star 33 9,779 4 Star 24 5,353 3 Star 24 3,699 2 Star 4 361 1 Star 6 437 Total Hotels 91 19,629 Deluxe 17 2,536 Superior 18 1,859 Standard 20 1,276 Total Hotel Apartments 55 5,671 Total 146 25,300

Positioning itself as the primary them landmark developments with The current cultural destination in the Middle the ability to draw in further tourists. East is a shrewd move by Abu “Provided that the air lift – focus on the Dhabi, says Hartzuiker but, “further primarily driven by the growth of top segment diversification may be essential to Etihad Airways – can support the means ensure the emirate individuates growing number of tourists, there itself from developing destinations is strong potential for the continued that there in its direct proximity”. growth of tourism arrivals.” is a strong The recent upswing in Abu However, it is not just the growth opportunity Dhabi’s real estate market has of tourism numbers that is important, had a positive effect on tourism but also how long they stay. to develop projects. Rising investor confidence, “As Abu Dhabi segues from mid-market availability of liquidity and attractive being a secondary destination to and budget financing options have opened the becoming a leisure destination in door for more projects. its own right, longer stays, often hotels, as well “Our projects and developments associated with leisure guests, can as boutique offered for sale and leasing have be foreseen for the city’s future,” and lifestyle been in high demand from potential says Hartzuiker. tenants and homeowners, as well One issue could be the likelyhood concepts. as investors,” says Al Fahim. “We of oversupply in the upscale and expect this demand to increase in luxury segment of the hotel market the next couple of years – especially in the short-to-medium term. when new projects come to life However, both Ros and Hartzuker on Saadiyat. They will not only agree that this will stabilise over add more value to the destination time provided tourism arrivals and attract interest from potential continue to grow. investors and residents, but will The current focus on the top also increase the footfall of visitors segment means that there is a strong and tourists to the island.” opportunity to develop mid-market “The tourism fundamentals in and budget hotels, as well as Abu Dhabi are currently strong,” boutique and lifestyle concepts. says Ros. “The emirate’s tourism “To successfully compete as a offering and infrastructure is world-class destination, the emirate constantly improving and a number has to be able to provide a wide of new hotels have opened, many of range of hotel offering,” says Ros. ◆