| 16 Mar 2010 |
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UAE Tourism Sector Back in Action
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DUBAI - As the global economy slowly recovers from the worst recession that rattled tourism markets across the world, the UAE's focus is now back on the hospitality industry.
While the past two years have witnessed a severe stagnation in incoming tourist numbers, new trends have begun to indicate that the UAE's tourism sector will bounce back and even reach the peak it saw in 2007, the memorable boom period.
"Though the global economic crisis had affected the tourist inflow in late 2008 and early 2009, tourists from all over the world have begun exploiting the reduced prices and availability of rooms," says Hakim Al Budoor, Chairman of Net ToursNet Tours
, one of the pioneers in the UAE's tourism industry.
"The market has begun to look more promising since October, when the second season of the year started. Rooms are now available at reduced prices, which is sure to lead to a 35-40 per cent increase in business in the current season compared to the same period last year, from leading markets such as UK, Germany, India Russia and GCC," he told Khaleej Times.
However, the flow of MICE (Meetings Incentives Confernces Events) business has reduced in the last few months. "But, we expect positive trends in this area too, as many companies are merging now. Naturally this will lead to merger conferences for close networking between the officials of the involved companies. So, we expect more incentive travellers to visit the UAE in the near future," he said.
Underscoring the vast tourism potential UAE holds, he said: "Dubai has much to offer to the world, from culture and tradition to modern monuments and adventures. In another three years our tourism sector will bounce back and by the end of 2010 and beginning of 2011, we will definitely be coming back to normal".
Net ToursNet Tours, which currently has a turnover of Dh100 million, expects an increase of 20-30 per cent in its revenue this year. "There is a huge increase in local customers than last year. The occupancy rate in hotels is at 60-70 per cent now, which is enough for a bright outlook in the coming months" said Budoor.
He also points out a noticeable difference in the spending habits of tourists compared to the previous years. "They (travellers) cut cost in many areas, and we have begun to notice their propensity towards budget hotels and packaged offers".
Advantage DubaiThe tourism industry in Dubai has several elements working to its advantage. This includes the opening of new hotels in the emirate as well as the promotions announced by big hotel chains with Dubai links, bringing in customers of varying demographics. What's more, The Department of Tourism and Commerce MarketingDepartment of Tourism and Commerce Marketing (DTCMDTCM) is opening up new markets coupled with Emirates AirlinesEmirates Airlines now flying to nearly all destinations across the World.
"Dubai will continue to be the fantasy destination. It is going to be more in demand in the coming years," Budoor said.
In Budoor's opinion, Dubai has to come up with more novel marketing campaigns at this juncture to boost its tourism potential further. "Awareness should be created about new concepts of hotels, especially about resorts coming up in Palm Island and south of desert. Many people are not aware about the availability of such facilities. But, tour operators are trying hard to create awareness among the tourist enthusiasts".
New StrategiesNet ToursNet Tours has planned many changes in its marketing strategies to cope with the changing times. "We are just upgrading some of our itineraries with new concepts for hotels and destinations. We plan to create new itineraries for new markets and we are also reviewing the packages for the new buyers,"
said Budoor.
As a pioneer in the tourism industry in the region, Budoor highlighted that, "there is more strength in combined packages. Dubai is in demand as a half destination. It is a starting and ending destination for cruises. This is because of the availability of flights to all destinations due to the presence of hundreds of airline companies in Dubai, which is a good connection to all destinations and countries".
He said that repeat visitors are one of the major strengths of Dubai's tourism industry. "Dubai is always on the map. Many people visit Dubai repeatedly to see the changes. We also receive a steady flow of new people coming in to Dubai. This was not so before. International tour operators are increasing their allocation for Dubai. There is more demand every day. In the future, we will have stronger demands," said Budoor.
20th AnniversaryNet ToursNet Tours has just completed its 20 years in the industry. "There was not so much competition when we started with a chartered flight from Helsinki with 130 people back in October 1989. Then, Scandinavian countries became our regular markets. Those days tourists preferred to go to mountains and deserts in addition to city tours, souqs, museum, Jumeirah mosque and government markets,"
said Budoor.
He recalled that there was only 25 per cent occupancy rate in hotels at that time. "There were very few hotels like Hyatt Regency and Chicago Beach. Net ToursNet Tours started with just nine staff, and now we have more than 160 employees. Those days we just had three 4-wheel drive vehicles and two buses, whereas now our fleet includes hundreds of vehicles," he said.
About his plans to celebrate the 20th anniversary, Budoor said: "there is no time to party."
However, Net ToursNet Tours will be announcing a slew of new packages and concepts to mark the anniversary.
"This year we hope to bring in 60,000 to 70,000 overseas travellers to the UAE," says an optimistic Budoor.
Acknowledged as a recipient of the UAE Superbrands status for five consecutive years since 2004, Net ToursNet Tours continues to hold a strong market share in inbound tourism, outbound packages and in the MICE industry. During the year 2008, the group further expanded its business in the GCC region establishing Net Destinations and Net Holidays.
"Our next destination is Asia and East Europe, and we have big plans out there," Budoor said.
By Jeejo Augustine
© Khaleej Times 2010
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