Cool as a cucumber
Dubai has stood out as the sole ‘oasis of calm’ amidst recent political turbulence across the region, which has proved to be great news for tourism to the emirate
While crisis and political turmoil in the Middle East brought tourism to a shuddering standstill in many of the region’s travel hot spots this year (take Egypt as a prime example) —Dubai appears to have emerged from all the chaos not only unscathed, but positively radiant.
Recent data from Ernst and Young revealed that the first six months of this year saw Dubai hotel occupancies increase to 82%, up from 79% over the same period last year — the highest in the Middle East.
Meanwhile, Dubai International Airport handled 4.7 million passengers in July — an increase of nearly 10% on the same month last year, and a new record for monthly traffic, and year-to-date traffic reached 29.3 million, up 9% on 2010. The airport now hopes to overtake Hong Kong as the world's third busiest airport by the end of the year.
Market experts agree that while political turmoil spread from Egypt across the Arab world, Dubai has been viewed as an ‘oasis of calm’, and as a result tourists have been flocking to the emirate.
David Thomson, regional general manager, Jebel Ali International said: “I hate to say this but [the political turmoil] has probably benefited us in many respects. Certainly this summer we have seen many enquiries from Spain and Italy which would traditionally go to Egyptian Red Sea resorts of Sharm el Sheikh and Hurghada."
He added: “Dubai has really benefitted from years and years of the government marketing Dubai globally. That message about Dubai being a great place to come for the family, being safe with low crime, spread constantly by DTCM for the last 10 years is really paying dividends now.
"When you see these things happening in Tunisia and Egypt etc, Dubai is immediately seen as the safe alternative.”
Mövenpick, VP sales & marketing Middle East, Toufic Tamim agrees, adding that a major benefit has been the influx of Chinese tourists who lengthened their stay in Dubai after cancelling out of Egypt: “This market had booked two- and three-night stopovers — but since the unrest, Chinese tour operators and local DMCs have sold Dubai as a final destination with four to five nights, so we have benefited from this.”
Even the summer season, traditionally a difficult, low period for Dubai has been described by one operator as “exceptional”.
Richard Devadasan, manager - M.I.C.E, SNTTA Emir Tours said: “This summer has been exceptional with increased visitor numbers from the past year and things are looking up for the city.”
New openings
And there’s more good news on the horizon for Dubai tourism as the latter part of the year will see a rash of new hotel openings, which the experts see as another measure of the “health” of the market.
“More and more scheduled new hotel projects are nearing completion with clear opening dates,” said Devadasan. “More than anything else, I think it beneficial for the end-user to make a choice from a bigger pool of offerings.”
In terms of new openings, the Palm Jumeirah is finally beginning to take shape in its original format, as a new beach destination for Dubai.
While 30 low-rise, themed resort hotels had originally been planned for the Palm back in 2001, the onset of the recession meant that following the show-stopping Atlantis Hotel launch three years ago, that remained the sole hotel on the development, alongside a few sadly empty building sites and dusty roads.
But today, One&Only The Palm and Jumeirah Zabeel Saray have already added to the credentials of The Palm Jumeirah, and Rixos opens its Palm property in December, with residences set to follow.
In addition, Mövenpick’s Royal Amwaj is taking allocations from December. According to Toufic Tamim, the resort has already been accepted as a welcome addition to the Dubai hotel inventory.
“This has been in the making for four years and many tour operators recognise the market for honeymooners and FITs, as well as the regional audience who will appreciate the water element with villas on the lagoons. In addition, the proximity of Atlantis will be a draw,” he said.
Next year, Fairmont will debut with a brief to twin group and leisure business, avoiding reliance on one sector: “We will have a robust kids’ club, as well as a great suite product and 36,000 sq ft of meeting space,” said Fairmont’s vice president for regional hotel sales Kent Cooper.
“The delays have been good in that things have been built up around us, and we are now seeing a cluster of hotels on The Palm at trade shows that helps incentivise big groups who might spread their business across several hotels.
"This meets the needs of the MICE sector and avoids the compression factor in the city.”
Also to come is Mövenpick’s Oceana Resort, the Sofitel Spa resort, the Habtoor Island Resort and Spa and Hilton.
Confusion still surrounds an ETA Star project involving Taj Hotels & Resorts — the Grandeur Residences were due to open this year followed by the Taj Exotica next year, but the Indian hotel group has declined to comment on the status of this project.
And it’s not just ‘new Dubai’ that will receive some exciting new launches this year. Jumeirah will be opening its first property on the 'other side' of the Creek — Jumeirah Creekside Hotel in Garhoud; and Spanish brand Melia is making its first foray into the Middle East with Melia Dubai, a luxury “urban resort” in Bur Dubai, close to Port Rashid.
A diverse destination
As new hotels open their doors, DMCs say Dubai is evolving as a destination in general. “Dubai has become a more “complete” destination catering for a wider range of guests, and the diversity of services helps boost inbound traffic,” says Luc Delcomminette, vice president, Arabian Adventures.
Delcomminette believes that Dubai no longer has a reputation as being solely a “luxury destination” which is “often out of reach”, but can now attract all sorts of business ranging from groups and incentives with moderate budgets, to larger conferences and cruise lines.
Visitors are also increasingly seeking something more from their experience says Delcomminette. “Increasingly, a good proportion of guests are looking for experiences other than run-of-the-mill tours and excursions. Clients are asking for environmental or socially-responsible options and programmes with a strong influence on local culture.”
This developing trend led Arabian Adventures to launch its new ‘Exclusive Collection’ — a bespoke brand that offers guests such activities as being a conservationist in the desert for a day, visiting private stables, or tailor-made activities on the sea or in the air.
Despite these opportunities, many in the industry argue that Dubai is still badly lacking a mega attraction in order to move up the next level of global tourism.
“Already we are seeing interest from families for innovation and interest beyond the beach," said Toufic Tamim. "If there was some large-scale attraction we have the market for it with feed from Emirates Airline. It could swallow 10,000 plus rooms easily.”
Maintaining standards
DMCs warn that with increasing numbers of tourists coming into the destination, it is crucial standards are maintained so that Dubai maintains its reputation as a trouble-free, high-quality tourism destination.
“Maintaining the quality of services and experiences may become a challenge as there are more and more tourists visiting the destination and more competition due to the growing numbers of hotels and service providers — but the quality of service should not be impacted," argues Delcomminette.
“It is important to continue offering such experiences, align pricing strategy to promote the destination at the right level to meet guests’ expectations whilst keeping sight of development at other destinations."
Devadason agrees: “It is crucial that we don’t fall short on delivery and ensure the reputation of service standards that we have as a destination, only gets better.”
How to sell
Calendar of events
The new Dubai Events & Promotions Establishment has launched the Dubai Calendar, an official reference point for festivals, exhibitions, cultural and sports events to keep hotels, operators and airlines informed of what's going on in Dubai.
Events this month include:
Shoppiesta: Eid Concert
31 Aug - 4 Sept
Dubai Duty Free Seniors Cup
10 September
www.dubaicalendar.ae
Star treatment
DTCM has announced the launch of a new hotel classification scheme that will broaden the existing system to accommodate the growth of the emirate’s visitor profile. One major addition will be a new budget hotel category, outside of the one to five-star ratings, while new criteria in the classifications will include resorts, guest houses, timeshare, youth hostels, self-catering and university campus accommodation.
Hotel watch
Coming up in dubai 2011
Jumeirah Creekside Hotel
Located at the older end of Dubai, this is Jumeirah’s first hotel on the ‘other’ side of the creek. The property will target the MICE market with 26 meeting rooms and a ballroom.
Opening date: Q4 2011
Al Ghurair Rayhaan by Rotana
Located in the heart of Deira, the hotel is linked to the new extension of Al Ghurair mall. The alcohol free brand will target the GCC market.
Opening date: 1 November 2011
DoubleTree by Hilton Dubai
The 344-room property in Al Barsha is the first DoubleTree by Hilton in Dubai. The hotel will include 164 serviced apartments, four meeting rooms, a health club and outdoor pool.
Opening date: Q4 2011
Mövenpick Hotel JLT
One of only three internationally branded fully serviced hotels in Jumeirah Lake Towers, the property will target the corporate, MICE market as well as long-term rentals.
Opening date: Q4 2011
Meliá Dubai
Spanish brand Meliá makes its entry to the Middle East with Meliá Dubai, a five-star 164-room 'urban resort' in Bur Dubai, The hotel features five restaurants and a full service YHI SPA
Opening date: 12 October 2011