Tourism Industry Effects On Uae Economy Tourism Essay

Nowadays, many countries try to diversify their countries’ incomes and do not focus on few sources. Economists emphasize on the bad impacts of the intensive usages of natural resources on countries that only depend on natural recourses as the main source of income. Therefore, most of the countries look for new source of revenues to increase their countries’ GDP (Gross Domestic Product). Tourism industry became an important sector that contributes (give some figure if you can get) in many countries GDP around the world. United Arab Emirates is one of the oil economy that is diversifying from depending on oil and gas contribution to other sectors. (give reference of Abu Dhabi Vision 2030, they have discussed about this objective) UAE makes great efforts to develop its tourism sector to play a significant role in the country’s economy growth. There are many activities which participate in developing the tourism industry in UAE such as creating tourism authorities (give name such as….), organizing festivals (give some name.eg. Formula 1 also attract tourists), participating in international events and involving trade to advertise about UAE tourism.

UAE is a federal government which consists of seven emirates. It is ruled by H.H. Sheikh Khalifa Bin Zayed Al Nahyan and Sheikh Mohammed Bin Rashid Al Maktoum Vice President. Abu Dhabi is the capital of the United Arab Emirates. All of the seven emirates contribute on the development plans and GDP income. UAE free market attracts many investments either from inside or outside the country and creates an ideal place for business. Political stability and free trade policy with no income (personal and corporate) taxes make UAE an excellent place for financial investments. UAE’s GDP rate is increasing yearly as shown in the following graph which proves the country’s healthy economy.

Source: TradingEconomic.com; The World Bank Group (give full reference such as Year, place etc.)

From the 21st century there was an increase in the UAE economy dependence on variety of sectors like manufacturing, trade, and tourism. The UAE was on the highest 32nd on the World Economic Forum’s Global Competitive Index for 2006-2007 and took 29th place on the networked Readiness Index in the same Forum (United Arab Emirates, Ministry of Economy, 2007). In 2008, Travel and Tourism sector’s contribution to the UAE GDP ranks it to be on the top of the 11th countries of the Middle East with an amount of 22.6% and rate of 13.5% according to the World Travel and Tourism Council (Staff Report, 2008). As a result of this achievement, UAE keeps on developing more tourism projects. One month ago, news declared that UAE will put $234 billion on the future tourism projects which may lead to 85% of tourism investment in the region by 2018 (AlArabiya, month ? 2010). Also, the numbers of tourists raise 16% (from —— to ——– give figure if it is available) comparing to last year according to Abu Dhabi Tourism Authority since UAE is one of the countries that has a rapidly increase number of tourists.

Establishing Tourism Authorities

Although there is no independent ministry for tourism in the UAE, UAE Ministry of Economy and Federation of UAE Chamber of Commerce and Industry participate in developing the tourism sector in UAE through provide many facilities and services that encourage tourist to visit the country. Therefore, many of the international hotels, firms are encouraged to open new branches for their firms around UAE Emirates. The number of tourism authorities in the UAE increases because many of the Seven Emirates believe in a vision to make their emirates to be the most attractive cities for tourists. Abu Dhabi Tourism Authority, Dubai Department of Tourism and Commerce Marketing and Sharjah Commerce & Tourism Development Authority are examples of tourism authorities that have established in different cities. Sharjah Commerce & Tourism Development Authority was established in 1996 to be responsible for arranging activities related to commerce and tourism locally as well as internationally. It develops a strategic plan to achieve the Emirate’s goals by using all kinds of media to show Sharjah as historical attractive place and at the same time a place for leisure and entertainment activities. It also enhances the Emirate participation in local and international tourism exhibitions (Sharjah Commerce and Tourism Development Authority, 2010). Dubai Department of Tourism and Commerce Marketing is the second by establishing date in UAE. It was founded in 1997 to promote, plan and evaluate the tourism activities in the Emirate. DTCM is responsible for advertising Dubai as attractive place and increasing the number of tourist to Dubai. It controlled 18 offices around the world which facilitate investments in hotels, departments and exhibitions in Dubai. Providing training and high standers skills for employees in the tourism sector under the supervision of expertise in the field is another role for DTCM (Dubai Department of Tourism and Commerce Marketing, 2010). Since Abu Dhabi entered the tourism sector lately, its Tourism Authority was established in 2004. Nowadays, many tourists’ eyes are on Abu Dhabi as a good place for tourism because of the great efforts of the Abu Dhabi Tourism Authority. ADTA cooperates with private and public organizations in the Emirate that are involved in tourism field. Conferences and exhibitions organizer work together with ADTA to develop the city tourism view. There are many physical constructions process to support the city tourism. Working on Abu Dhabi shore and Islands to build international tourism investments are things Abu Dhabi Tourism Authority responsible for. Al Saadiyat Island is one of Abu Dhabi huge projects that will play an important role in the promotion of Abu Dhabi tourism. This project will bring many of the international museums to the land of Abu Dhabi like Louvre (Abu Dhabi Tourism Authority, 2010).

Organizing Festivals & Exhibition

UAE Tourism Sector is growing and developing rapidly as a result of the government efforts to make the country one of the attractive countries around the world. Tourism Authorities in the country play a vital role in planning and organizing festivals, exhibitions and conferences to promote UAE position in the international tourism. They also don’t participate in events that are related to the tourism field, but as well in other events that may present UAE positively. For example, Abu Dhabi Tourism Authority participates in the Hannover Fair one of the largest industrial exhibition in the world as part of its promotional plan of the city and the country. This Fair helps to open some tourism business with to the city. The Authority also organized exhibitions and festivals such as Abu Dhabi international hunting and Equestrian Exhibition, Abu Dhabi Film Festival and Formula One Race which is an excellent opportunity to attract international tourists to visit UAE and Abu Dhabi. Also, there are many upcoming events that the authority will organize this month like World Green Tourism Abu Dhabi, Abu Dhabi Junior Golf Championship and Abu Dhabi International Motor Show (ADIMS) (Abu Dhabi Tourism Authority, 2010).

Dubai government as well makes distinguish efforts to support UAE position in the international tourism world. DTCM organized many festivals that become well known to people around the world like Dubai Film Festival which introduced Dubai to the world through inventing the most global and famous actors to present their work. Dubai Shopping Festival is an important event that not only encourages the financial investments in Dubai, but also strengths the tourism business of the city. GITEX (Gulf Information Technology Exhibition) also participates in the development of the tourism sector in the country. This Exhibition brings firms and people who are interested in technology to Dubai to present the latest inventions enhancing the city tourism side. Another significant event that is organized for entertainment and tourism purposes is Global Village. It is an event where countries from around the world come together to trade in one place. This village is opened yearly in Dubai with an increase number of local and international visitors. Each Emirate of the United Arab Emirates tourism can be seen from different perspective. For example, Sharjah is known of its cultural tourism because of the government’s concern for museums and cultural activities and events. Sharjah World Book Fair is an important event that is held annually introducing people to famous publications. It also conducts workshops and introduces different writers and critics to people.

On the other hand, UAE held many international conferences on business, medical, educational and technological topics in which it received many approvals for the conferences success. These countless conferences result to put UAE on the top of the preferred countries to hold conferences. UAE was ranked the fifth of the best destination for holding conferences as stated in The Country Brand Index which was announced in the World Travel Market in London (BusinessIntelligence Middle East, 2007).

Trade & Tourism

UAE strategy to develop the tourism sector involves arranging many activities that lead to potential positive consequences. For instance, participating in international exhibitions, festival and conferences directs the world to make a successful business with UAE. Many famous firms and hotels are opening their branches in most attractive side of the country. Also, the number of tourists has been increased recently. In the Dubai, there is 70% increase in hotels occupancy from last year (Kapur, 2010). Abu Dhabi hotels also show a raise in guests’ number. For example, in August, the increase rate was 15% comparing to the same month last year (Deputy, 2010). If we talk about the recent event that happened few days ago in Abu Dhabi “Formula One”, we can expect the huge profits hotels may receive from high number of guests from around the world. This event also enhances the business relationship with other countries which may results to new financial investment. As a result of tourism flourishing, UAE Economy develops and achieves good reputation. Therefore, UAE GDP is expecting to grow 2% by 2010 comparing to 1% increase in 2009 (UAE Interact, 2010).

Conclusion

It is clear as discussed above, that UAE government tries to have different resources for supporting its economy and GDP. It is sequentially not depending on oil and gas revenues, but it is looking for other resources like investing in tourism industry. UAE made huge efforts in developing the tourism and making the country one of the distinctive country in tourism field. It arranged and participated in international exhibitions and conferences presenting the country identity in many fields such as educational, political, technological, economical fields. In my point of view, UAE Tourism will keep blooming and participating with an increase rate in the country GDP according to the country strategic plan. It is really interesting to see these growing numbers of tourists from over the world visiting UAE and establishing valuable opportunities for international business. Since UAE is well known country with its tourism and economic sector, it has to maintain these achievements by keeping up the good business relationship with other countries. Also, UAE must think of an approach to develop other sectors to push them up to be one of the competitor countries with many flourishing sectors around the world.