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There are more than 200 national economies involved in the competition of destination market and as of 2006 worlds governments have exceeded its expenditures US$1,480 billion to make their states as destination brand (Balakrishnan, 2008). This literature review aims to identify and examine the positive impact of the tourism in Dubai with especial perspective of hospitality industry. Historically Dubai is significant tourism destinations for world class comfort to tourists (Steiner, 2010) and tourism in Dubai has further impacted the hospitality industry in Dubai. It is reported that tourism is an integral part for economic growth of Dubai (Lee & Jain, 2009) as this industry accounts for 1.2 per cent of total GDP and the combined impact is expected to total 11.6 per cent in 2005 (Ryan & Stewart, 2009) and the development made in Dubai is helping the government to attract more tourist to travel to Dubai (Henderson, 2006). This study has aim to identify tourism as growing industry in Dubai while also discussing the increasing importance of the sector and its positive impact on the hospitality industry caused by increasing promotion of tourism.
The Importance of Growing Tourism Industry in Dubai
Tourism as an Industry
Tourism is comprised of individuals' activities to travel and stay outside their usual permanent places for one consecutives year (Steiner, 2010). In the broader term the industry of tourism means all socio-economic activities that are directly or indirectly involves the provision of services to tourists (Henderson, 2006). According to the World Tourism Organization's Standard Classification of Tourism Activities, different other sectors are also associated with the development of tourism industry including lodges, transportation means, food and beverage, culture and entertainment and finance (Ryan & Stewart, 2009).
Tourism Industry in Dubai
The latest report of World Travel and Tourism Council has highlighted Dubai as the most world-class destination for tourism and also reveals that the industry of tourism in Dubai has grown to 14 per cent annually (Stephenson & Knight, 2010). Over 100 tourism and leisure projects are underway and now the tourism sector accounts for almost a quarter of the Emirate's annual GDP. To examine this figure there is need to evaluate the tourism industry in Dubai. Dubai is the capital city of the UAE and one of the fastest developing cities (Walker, 2009). With number of remarkable and outstanding tourists' spots, Dubai has been the most popular destination for tourists. In addition, Dubai is also considered as hub of all tourism activities in Gulf while economy of Dubai majorly depends on tourism (Henderson, 2006). Since large number of tourists and travelers from different part of the world through Dubai for leisure purposes, this tendency of tourists has naturally led to increase the demand for the services of hospitality industry and providing different job opportunities in Dubai (Richard, 2008). However, the industry of tourism and hospitality is already well developed as a result of large number of travelers visiting the city the government is strategizing to more develop these industries (O'Connor, 2010). Moreover, the strategic implementation made by the government for the development of tourism has remarkably impacted the hospitality industry and this impact has been observed as positive (Weiermair & Mathies, 2004).
Development in the Tourism Industry in Dubai
The industry of tourism is an important part of Dubai's economic growth as result of increase flow of foreign cash into the country (Boniface & Cooper, 2009). Dubai possesses a significant position in the world tourism and to maintain this position the government of Dubai has strategized to more develop and boost other agencies and industries related to tourism such as hospitality, banking and finance system and transportation (Marcus, 2010). The government realized that in order to reshape the industry the government has to signify the wholesome approach for development of Dubai (Henderson, 2006). To Walker (2009), the development of Dubai as tourist destination and business center has attracted the hospitality operators. Moreover, Dubai also allures the tourists for its shopping malls, architectural buildings and Islamic architecture, the government also focuses on the above sectors of the city so that it could maintain the sustainable interest and attention of the tourists for travelling. In the development of hospitality industry the hotels and resorts are developed as major part that helps to promote the tourism in Dubai (Eisen, 2008). The plan of Burj Dubai in Dubai has globalized its hospitality services by expanding its lodging brand globally to key destinations in the Middle East (Dunbar, 2009).
Impacts of Tourism in Hospitability Sector of Dubai
Social and Cultural impacts
It may be possible that tourism influences the social and cultural aspects of life in specific area depending on the strengths of cultural and religion. The relationship between the hospitality sector and the tourists can be considered as the main factor affecting a community as tourists may not be sensitive to domestic customers, traditions and standards. The positive impacts on the area include the benefits which include:
Domestic community can mingle with individuals from the different backgrounds with distinct lifestyles which might lead through the demonstration effect towards the development of enhanced lifestyles and implementations.
Wide range of cultural and social events available for domestic people which include exhibitions, entertainment etc.
Enhanced facilities for sports and leisure developed for the tourists which might be in use by domestic people
Encouraging the youth exchange programs, voluntary work overseas, etc.
Under the light of above key points, it can be said that Dubai is one of the best tourist destination (Stephenson, 2010) where the establishment of tourism has positive effects on social and cultural life of the region (Balakrishnan, 2008).
The main source to the success of Dubai is the ability and prediction of good opportunities, along with the avoided saturation of tourism industry by creating more beaches, tourist activities etc. The tourism in hospitality sector within Dubai is increasing at a faster pace without showing any sign of decline. The hospitality industry is helping in satisfying the demand of tourism in order to compete across the world effectively. The bulk of tourists are accounted for approximately twenty percent of hotel guests and during 2007, hospitality industry of Dubai received 92,328 tourists from China which was approximately a thirty five percent increase per year. The economic effect on the hospitality sector in tourism of Dubai includes the increased employment level (Sharpley, 2008) with the increasing development of hotels, increased revenue in terms of tourists' arrivals in Dubai.
In most general terms, the environment has the significant and prominent effect on the tourism in hospitality industry within Dubai. There have been major hotel developments in Dubai which widely include the Palm, Dubai Tower, Burj al Arab hotel etc. Moreover, Dubai has evolved into the major shopping destination along with the Arab traditional culture which is intended to be expanded (Sharpley, 2008). The tourism within hospitality sector means to provide a comforting and soothing environment to the tourists while staying in hotels of Dubai. The planning structure of Dubai has been working on this perspective and brought various improvements in hospitality industry which attracts tourists on wide scale every year (Lee & Jain, 2009). The positive impacts on environment in Dubai within hospitality industry may include increased income for preservation of various facilities, encouraging the conservation of features etc. Moreover Dubai land is considered to be the largest theme park across the globe which is twice the size of Disney land existed in Florida.
This literature review examined the tourism industry in Dubai and found that with increasing rate of tourists the government of Dubai has taken initiations to more develop the sectors and industry associated with the tourism industry (O'Connor, 2010). Moreover, in the review it is found that hospitality industry is the most impacted sector and this impact has been observed as positive. Dubai offers tourists a fascinating adventure along with five-star leisure facilities, attractive beaches, Arabian hospitality and cultural blend of old and new cultures (Dubai, UNITED ARAB EMIRATES. 2005).
However, there are other sectors that provide growth to tourism but hospitality has become backbone of the tourism as mostly tourists are attracted traveling to Dubai due to its well developed and appealing hospitality. It is found that tourism has greatly affected social, cultural, economic and environment aspects of hospitality. However, the changes caused by constant development in the tourism has given new opportunity to different fields of life, development of hotels, shopping malls and others have expanded the Arab traditional culture. As a result of such development social and cultural life of Dubai is also impacted and due to increasing tourism domestic community gets an opportunity to mingle with people from different backgrounds. Since wide range of cultural and social events is arranged in Dubai it leaves a positive impact on the local people of Dubai. Moreover, increasing growth of tourism has also impacted the enhanced facilities for sports and leisure spots developed for tourists.