DUBAI TOURISM INDUSTRY UPBEAT – KEY PERFORMANCE TRENDS 2016
- September 22, 2016
- Posted by: RKonnect
- Category: Hospitality & Tourism
Dubai – The Next Global Tourist Destination Hub
Dubai has come a long way to evolve as a truly global tourist destination enabled through its robust tourism industry. With an annual tourist inflow of over 14.2 million, Dubai has been the 4th most visited tourist destination in the world in 2015, after London, Paris and Bangkok. Tourism and hospitality has been one of the torchbearers of the economy, contributing near around 20 per cent towards Dubai economy with tentatively 7 annual growth rate. Dubai expects to welcome more than 15 million tourists in 2016.
Key Performance Data – Dubai Tourism Industry
Dubai – World’s 4th Most Visited Destination & Still Counting
In the times to come, Dubai will further enhance its investment in the tourism sector aligned with its preparation for World Expo 2020 and bigger economic objectives. By 2020, it is planning to attract 20 million annual visitors with a CAGR of 7%. As part of its preparation, the Dubai plans to add 35,000 new hotel rooms by 2020. Presently, it has a total inventory of 65,000 hotel rooms with an Average Daily Rate (ADR) of USD 243.7 in 2016, a 2.3% increase compared to 2015.
The government of Dubai has planned over 50 large-scale government initiatives to boost its tourism growth. This includes mega tourism attraction projects such as IMG Worlds of Adventure and Dubai Parks & Resorts with annual visitors being in tune of 4.5 and 6.7 million respectively. Dubai government is also initiating various policy wide changes such as introducing tourist VISA on arrival for Chinese visitors to give strong push to the tourist volume.
Dubai Tourism Sector – A Major Avenue to Invest
Driven by ambitious plans, wide scale initiatives and continuously increasing inflow volume, Dubai’s tourism industry will remain one of the key avenues for investment amongst international & regional investors. Large volume of investment is expected into hotels, hotel apartments, resorts, restaurants and travel management ventures. Similar bullishness should prevail in retail ventures, wherein the dynamics are closely linked with tourism business.
Investment Opportunities – Dubai Tourism Industry
The business environment in Dubai and UAE is very conducive for investment as the country offers some of the most affluent consumers in the world along with business friendly regulations and zero income tax for businesses and individuals. Due to strong economic growth projected, Dubai could be considered as the most lucrative destination for future investments.