The shisha cafes, chic shops and swanky new buildings springing up in Dubai highlight the close link between the rich mix of cultures and cuisines and work ethics that blend local mores with modern touches.

But the perception that food and beverages may be overpriced, while muted at present, may become stronger.

Mohammed Khamis bin Hareb, operations and marketing director, Department of Tourism and Commerce Marketing (DTCM), noted tourist arrivals actually went up during, and especially after, the Iraq war, defying the regional trend. By implication, Dubai - and its prices - are still attractive for tourists.

"Official first-quarter figures this year show the number of hotel guests in city establishments actually posted a 5.16 per cent increase, compared to the corresponding period of last year."

Further, even in the Far East's SARS-affected cities - against which Dubai has often been measured - regular brewed coffee would still cost $3 to $4 in four-star hotels. In Dubai, however, some hotels, such as Four Points by Sheraton in downtown Bur Dubai, offer coffee or tea on demand to guests.

Hotels gain nothing by lying about their occupancy rates.

Even during the Iraq war, the Millennium Airport Hotel said occupancy rates had eased only 10 per cent. And while June was expected to be a fairly quiet month, during the first 10 days have seen occupancy running at 100 per cent.

"In May, we had 98 per cent, and 88 per cent in April, because of the war. But once the holidays kick in throughout the GCC, we expect 100 per cent occupancy throughout July and August," says its general manager, Simon Moore.

The post-war optimism is rife throughout the sector, with hoteliers noting Dubai has rebounded very quickly. Even if Dubai is winning the race to woo all kinds of tourists, officials tasked with promotion tourism are not taking things easy.

As bin Hareb pointed out, the department has also been promoting the summer extravaganza, Dubai Summer Surprises 2003, in regional and international roadshows.

Next will be the IMF and World Bank meet in September.

Dubai's tourism industry has been fairly effective in sustaining what it has started. In many ways, it is being run like one corporation, where both the pubic and private sectors work together to pool their resources in a planned manner.

"It is always beneficial to work in co-operation when objective and goal are same - promoting Dubai. This way, the desired results are achieved much faster, rather than working with a few organisations individually," explained bin Hareb.

Gulf News