Dubai: With Christmas falling on a Friday and a stronger demand for value for money than last year, supermarkets are hoping to appeal to cautious spenders while hotels are having to be more flexible.
Foregoing lavish restaurant offerings is something retailers are hoping will be popular this year.
"A lot of people are doing a lot of get-to-gethers at home," said Kamal Vachani, managing director of Al Maya Group. "The in-house parties are going strong."
"Friday will be off anyway," added a spokesperson from Spinneys. The chain's Christmas marketing drive this year is focusing heavily on home cooking and practical gifts.
A campaign called 'The Right Ingredients for a Perfect Christmas' outlines recipes for the festive season with prices listed on the side. Such an approach is hoped to appeal to consumers worried their spending may go unintentionally over budget.
"People can approach Christmas with their eyes open," said the spokesperson. "We show the key ingredients of each recipe and how much each is going to cost."
Spinneys are also pushing practicality when it comes to Christmas gifts. Packs of ingredients with recipe cards for making home-baked treats and grocery vouchers will appeal to consumers no longer nonchalant about giving unwanted gifts.
"I think people are thinking a bit more out of the box. People want to give a practical gift that won't go to waste." Lulu hypermarket are confident tightened wallets this year will work in favour of the competitively priced stores.
"They may be cutting back on trimmings, however these sorts of festive occasions always bring out a drive to celebrate," said Nanda Kumar, spokesperson for Lulu. "That is where retailers like us will benefit because we are value for money outlets."
Lulu are pursuing a fresh turkey angle this year, as customers who trade down from hotels and restaurants want similar quality in their dining rooms.
"We are flying in fresh turkey. Last year we did this in one store but this year we have done this in most stores," said Kumar. "There is a full demand for fresh turkey."
Grocery retailers agree that although consumers are more cautious than in previous years, Christmas groceries are to some extent recession-proof. Whereas gift-giving may be more heavily affected, purchasing festive food seems more warranted.
"Whether its Eid, Diwali or Christmas -- they will spend," said Vachani.
Eating out
For those who still choose to eat out on Christmas day, hotels and restaurants in the past, which had fully booked dining rooms weeks in advance, are having to work harder this year.
Those venues which previously traded on an exclusive, well-known name, will have to qualify that with service and value for money, some say.
"People are now demanding value for money," said Russel Sharpe, managing director of hospitality experts Mezze Associates. "Originally it would be 'I am going to the Royal Mirage, or Jumeirah Beach Hotel'. Now rather than looking at location, it's what they can get."
This could involve special offers for larger groups, more inclusive deals on dining or cheaper options on set menus. People are not necessarily cutting back on spending, but are more aware they have the upper hand as the market turns more consumer-oriented in tough times for the hospitality industry.
"It's not necessarily saving money, you wouldn't mind spending the same amount at home as in a hotel," said Sharpe.
"But what is happening now is you are not putting up with the 'take it or leave it' attitude. Previously, you had no choice -- if you went to book something it was 'take it or leave it'."
Whilst hotels in Dubai are generally holding their Christmas dinner prices to same levels as last year, said Sharpe, many are downsizing on diners they will be catering to.
Smaller crowds
A restaurant that may have squeezed in 300 festive customers last year will probably choose to downsize as much as 200, he added.
Dubai's more iconic beach hotels however will do better this year at selling, he added. Those who already have guests staying on holiday will have a ready supply of diners.
"A lot of the beach hotels are full," said Sharpe. "But it's the other hotels that are going to feel the pinch. They [beach hotels] sold it at a reduced rate but nevertheless they have a captive audience there."
This week will see the final arrangements for Christmas take place, with food and beverages high on UAE shopping lists. Whether residents choose to eat out or in, similar to most industries during the downturn, it's a buyers market.
By Jane Ferguson
© Gulf News 2009
