The growth has been to a great extent Tourism in : The Sunrise Sector driven mostly by tourists from the GCC, China and the MICE (Meetings, Incen- B Rajesh Kumar tives, Conventions and Exhibitions) sectors.

Associate Professor B Rajesh Kumar The revival in tourism which has Institute of Management Technology significantly contributed to Dubai’s eco- P.O Box:- 345006. nomic recovery can be attributed to the Plot UG-02, DIAC, Dubai, UAE. initiatives taken jointly by Department Mobile: 971502308202 of Tourism and Commerce Market- Email: [email protected] ing, and the Tourism industry. One of the major reasons for Tourism has become a popular global Currently there are 555 hotels of a boom in tourism could be attributed leisure activity. In 2010, there were various types in Dubai of which 62 to a massive tourism campaign in the over 940 million international tourist belong to five star categories. In 2011, overseas media particularly through arrivals, with a growth of 6.6% as approximately 159 conferences and world television channels. Their road compared to 2009. International exhibitions were held in Dubai of shows and various programs like “kids tourism receipts grew to US $19 billion which approximately 79 were held in go free” have generated more demand in 2010, corresponding to an increase the . 15 were for the market. in real terms of 4.7% held in DICC. This year there were 19 cultural and festival shows in Dubai. Dubai has emerged as an important The significant tourist inflow has The region accounted for 66 sporting tourist destination in the global become a significant part of the local events which included camel and tourism map. The region has become economy. Tourism contributes about to horse races. There are 43 shopping an epicenter of attraction for business 11.6% of Dubai’s GDP. The region has centers in Dubai. There are over 63 people, tourists and shoppers. The emerged as a regional tourism hub and overland safari companies operating statistics reveal the growing relevance it can be stated that leisure has sur- in Dubai. 85 embassies are located in of the region. About 8.5 million passed business as a primary motive for the UAE. tourists had visited the region in visitors. Dubai has also emerged as an 2010. There was also an increase in international sporting venue. hotel capacity which remained at an In 2010, the United Kingdom, India, average of 70%. Cruising in the region Iran, Saudi Arabia and the United The cruise industry has boosted the is also experiencing growth. Dubai had States became the top five source inbound tourism by bringing in a new hosted 390,000 passengers in 2010. markets for Dubai’s tourism industry. segment of holiday makers into Dubai. The region expects 625,000 cruisers by Geographically Dubai is well positioned 2015. Dubai cruise terminal can host The revival of the sector could be as a cruise destination with its tourism up to 7000 passengers and 3 ships at attributed to various factors. The infrastructure facilitated by an excellent one time. The number of tourist guests market has witnessed correction with flight network from around . increased by approximately 10% in the emergence of budget airlines and 2010 compared to the previous year. budget hotels in the region that has helped balance the tourist mix.

Source: www.dubaitourism.ae, Department of Tourism and Commerce Marketing Table 1: Five Star hotels in Dubai -2011 Statistics

MIDDLE EAST JOURNAL OF BUSINESS - VOLUME 7 ISSUE 1 MIDDLE EAST JOURNAL OF Business • VOLUME 4, ISSUE 1 15 Factors critical to tourism destination The tourism industry in Dubai faces the It has been often stated that there are development include stability in socio challenge of rising cost of its hotels. opportunity costs and financial risks economic and political domain, the The decline of the euro and the pound associated with more emphasis on tour- government tourism policy, accessibility, against the dollar would put pressure ism. Tourism is partly responsible for amenities and attractions. Dubai scores on Dubai’s tourism as dirham is pegged the unprecedented construction and well on all these aspects. against dollar. Dubai’s attraction as a real estate bubble in Dubai. Excessive tourist destination may decrease on expansionist tourism programmes have account of high costs especially for negative ramifications. It could adverse- Dubai acts as a regional entrepot and travelers who come along with the ly affect bird sanctuaries and nature promotes itself as the commercial and whole family. Dubai also faces competi- reserves with rich ecosystems. financial nexus of the Gulf region which tion from less expensive destinations is clear from the initiatives undertaken such as Lebanon and Egypt .Qatar is to develop free trade zones and indus- also gaining prominence in the tourism The Coast constitutes about trial parks. Dubai is seen as a compara- map. half the total coastline and is intensively tively liberal and cosmopolitan society occupied by both residents and tourists. with 80 % expatriate population. Dubai It has the most popular beaches and can count on as being one of the safest Dubai market is yet to capture signifi- numerous hotels, water sport centers, cities in the world. cantly the thriving health tourism mar- parks. Population growth and growing ket of Asia. With rising health care costs, tourism industry may upset the delicate medical tourism has become a boom- ecological balance of the region which Government has a key role in initiating ing industry especially in Asia. Countries will lead to increased erosion of coast- and sustaining tourism. With respect to such as India, Thailand and Singapore lines and pollution. At the same time it tourism policy of the government, tour- offer medical care for just 10% of the is noteworthy to point that legislation ism was positioned at the centre of the price that it would cost for similar exists in an endeavor to safeguard pro- diversi?cation programme alongside procedures in the US. The challenges tected zones. Road traffic has increased construction. faced by this sector include quality and exponentially resulting in congestion cost considerations. Despite the rising and atmospheric pollution. With respect to accessibility, the growth number of hospitals with accreditations, of tourism is closely tied to the ad- still UAE has to go a long way to estab- lish its reputation as a cost effective and Overall the success of Dubai becomes vances in transport and easy access a classical case of providing insights of by air which is a prerequisite for any safe destination for medical treatment. In this context it is noteworthy to point how a state with an imperfect supply country to emerge as a leading interna- of conventional natural and cultural tional destination. Dubai has focused on to the collaboration that Emirates have established with Harvard Medical attractions emerged as one of the best developing the region as the strategic international tourist destination. air transport hub for the Middle East School to operate Dubai Healthcare city and Far East. Dubai also markets itself as is in the right direction. a cruising hub and destination on lines Dubai’s tourism is also hampered by the of the Singapore model offering tough fact that it offers few mid priced hotels. competition to the crowded Caribbean Now the focus of high rolling tourists and Mediterranean region. Dubai has have shifted towards all inclusive positioned itself in Western markets as packages. an exotic but safe beach tourism loca- tion with diversions of shopping and The demand for business and leisure assorted culture and natural heritage travel is affected by economic move- attractions. More focus ought to be on ments and eroded by political instabil- developing the cultural leisure experi- ity. The economic recession in 2008 am- ence in the context of natural and cul- ply demonstrates this fact with respect tural heritage attractions. In the context to the case of tourism in the region. At of promotion, Dubai’s attractions and the same time, the political instability amenities are facets of the destination due to the uprisings of the Arab Spring brand communicated in a number of in many parts of the Middle East will act marketing exercises. The region has as a catalyst in enhancing the image of indeed benefitted from active tourism Dubai as a world class tourist promotion around the world. Dubai’s destination. attractions centre on its 64 km coastline and resort hotels. Events are presented and packaged as attractions. Challenges Dubai faces competition from estab- ahead lished competitors such as Australia, the Caribbean, Malaysia, Maldives, Mauritius, Seychelles, South Africa, the Canary Islands, Thailand and Turkey.

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