DUBAI HOSPITALITY SECTOR SET FOR REMARKABLE GROWTH IN NEAR FUTURE
- May 16, 2014
- Posted by: RKonnect
- Category: Hospitality & Tourism
Dubai’s tourism and hospitality sector is set for a remarkable growth in the near future. The effect of tourism on Dubai and UAE’s economy is twofold. Firstly, it helps the emirate earn large revenue through its tourism exports. Secondly, the booming sector is considered as one of the key components of the emirate’s overall economy as it is closely interlinked with other alternative sectors such as real estate and retail industry.
In our previous report, we have discussed that with an estimated objective of realizing an annual tourist influx of 20 million, Dubai will witness a near around 12 percent growth in the coming time in terms of its annual tourist inflow. Similarly, aligned with its long term tourism objective, the Emirate is expected to add another 66,000 hotel rooms in next 5-7 years. Such positive sentiments have been also witnessed in the recently concluded events such as Arabian Travel Market (ATM) and Arabian Hotel Investment Conference (AHIC).
Besides mega events and an overall euphoria towards the sector, the recent time has also witnessed announcement (or endorsements) of some of the key projects, which can be instrumental in reshaping the structure of the dynamic tourism and hospitality landscape in Dubai and UAE.
Some of those projects are briefly researched below as follows:
1. Dubai Water Canal Project: The construction work has commenced on Dubai Water Canal Project that was unveiled in October 2013. This also indicates that Dubai Government is committed towards completing the announced infrastructure projects. The Water Canal project is estimated at AED 2 billion and it involves construction of massive 16 lane flyover on Sheikh Zayed Road, under which the canal will flow in phase one along with construction of six lane bridge the second phase which involves constructing of six lane bridges above the canal on Jumeirah and Al Wasl.
The overall project which will be completed by 2017 will have numerous luxury housing, 4 hotels, 450 restaurants and retail space associated with it. Not to mention beautiful marinas and cycle pathways, which once complete will be a great boost to tourism, retail and real estate sector in Dubai, UAE.
2. Dubai Safari Park: The AED 150 (USD 40.8) million worth ambitious project will be spread across an area of 120 hectares and will include a zoo, that will have Arabian Village, Asian Village, African Village and Safari Village apart from botanical garden, educational and veterinary facilities, resort and a golf course. Located on the opposite side of the famous Dragon Mart in International City, it was initially planned in order to shift the existing zoo, which is based in Jumeirah. However, given the range of offerings, it will be a much larger project contrast to the existing zoo.
Expected to be finished by 2015, the project also has an artificial Wadi consisting of water falls and boating facilities. The Wadi, zoo and other tourist attraction can add up tremendous value to the tourism in the Emirate. Besides, offering an entertaining package to the incoming tourists, it will also attract a large volume of visitors from other Emirates, which so far prefer visiting the Al Ain zoo in the neighboring Abu Dhabi, believed to be a better alternative to the one at Jumeirah. Interestingly, the project executed under Dubai Municipality will also use effective green technologies, reaffirming Dubai’s commitment towards sustainable development.
3. District One, Mohammad Bin Rashid District: Works is on in the AED 30 (USD 8.2) billion Mohammed Bin Rashid City, which is expected to be finished by 2018. One of the major announcement done for the project was unveiling the District One Project, the 4 million square feet mixed use project, which will occupy nearly about 7.5 percent of the overall project. District One will involve 14 KM long manmade beaches, 1500 luxury villas along with various sports, retail and leisure attractions.
Overall, the Mohammad Bin Rashid District will have over 100 hotels, World’s largest shopping mall, film studio and a vast amusement park, besides large number of retail and residential units. Interestingly, it will also have a large open green space, once again indicating greener and eco-friendly dimensions of the latest projects happening in Dubai.
4. Blue Water Island: Construction work is rolling out in full swing for the AED 6 (USD 1.63) billion Blue Water Islands, which will have the tallest ferris wheel in the world called Dubai Eye besides Souq, 5 star hotel and various residential and retail units. Green signal has also been given to an AED 500 (USD 136) million bridge which will konnect Jumeirah Beach Residence (JBR) with the island. Once complete the Blue Water Island is expected to attract over 3 million visitors.
In addition, Dubai is also planning to heavily invest in international markets through its state owned enterprises. Recently, His Highness Sheikh Mohammad, Prime Minister of UAE and Ruler of Dubai, has endorsed Jumeirah Group’s hotel expansion plans, worth AED 8 (USD 2.2) billion, in eleven countries across the globe, in the form of 4300 new rooms.
Impact of Tourism Projects on Dubai Economy
Bigger integrated domestic projects coupled with expansion plans in the international markets demonstrate Dubai’s ambitions of achieving growth and influence, through a sustainable and diversified route. These projects are part of Dubai’s long term strategy of achieving economic excellence and vibrancy through the help of large scale tourism projects, which will not only ensure large tourism revenue in the near future but can also further invigorate the booming retail, real estate and construction industry in the emirate. In addition, such larger than life projects should also add tremendous brand value to the image of the Dubai, in front of the international communities of investors, businesses, entrepreneurs and think tanks, thereby attracting them towards itself in big volume. No doubt, the emirate is one of the finest examples of prudent and visionary strategic acumen.
This report has been compiled by Research Konnection Team, a Dubai based Market Research and Consulting House with a focus on capturing finer details of various sectors in UAE. Our emphasis is always on the right suggestion rather than good ones.
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