Tourism in the UAE Analysis

Table of Content

INTRODUCTION

In the recent years the UAE has invested heavily to peak up its tourism sector. Today, UAE is considered as an international tourist preferred destination. Recently, UAE tourism sector has benefited from its political stability within the Middle East region to hit high records.

This focus on the tourism sector is part of the UAE comprehensive strategy to build a diversified economy. In 2012, tourism sector contributed 14% to the UAE economy. This summary will explore the most significant non-oil sector contributing in the UAE economic growth which is tourism. It will identify the SWOT analysis of the tourism sector as well as the advantages and disadvantages. Add to that, the role of tourism sector in the UAE economic growth and the past, present and future trend of tourism.

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SWOT ANALYSIS

STRENGTHS 

  1. World-class airport facilities and lounges for example Abu Dhabi Gold
  2. High quality of road, port and air infrastructure such as Metro, Public Buses, Taxi and Marine transport.
  3. Well-developed and modern entertainment opportunities for example Shopping malls, Dancing fountain and Ferrari world.
  4. Friendly and flexible opening times for most of the entertainment and heritage places.
  5. Safety and security.

WEAKNESSES

  1. Feeble national tourism.
  2. Low regional collaboration between different emirates.
  3. Most heritage areas are similar.
  4. Art of the visits to the heritage places are too traditional.

THREATS

  1. Competition from other countries.
  2. New destinations on the marketplace that may lead to decrease the number of UAE visitors.
  3. High security regulations in the airports.
  4. Economic crisis may affect the tourism sector in the UAE.

OPPORTUNITIES 

  1. Targeting intermediate spenders through cheaper hotels, transportations and restaurants.
  2. Collaboration between different emirates.
  3. Reasonable prices for UAE flight tickets.
  4. UAE central location in the world map.

TOURISM ADVANTAGES & DISADVANTAGES ADVANTAGES 

  1. Divers UAE GDP from oil sector to other sectors.
  2. UAE became well-known on the world map.
  3. Foreign exchange.
  4. Attract more people to live and work in UAE.

DISADVANTAGES 

  1. Cultural destruction.
  2. Affect UAE nationals employment.
  3. Development of illegal activities.
  4. Serious illnesses brought by tourists.

TOURISM AND UAE ECONOMIC GROWTH

According to the World Travel & Tourism Council, UAE tourism sector is continuously growing faster than the world GDP growth average. In 2012, the global trend was 9% while the UAE trend was 14% (UAE Tourism Sector Set for More Growth in 2013).

For the last two decades, the UAE became one of the most popular destination of leisure, entertainment and business for those who are seeking the best of everything starting from the luxury hotels, business deals to its significant beaches. This shift to non-oil sectors assist in enhancing UAE economy.

TOURISM PAST, PRESENT AND FUTURE TRENDS

As part of UAE strategy to retain the inflow of foreign cash into the country, the government decided to shift from the traditional concept of oil sector focus to other non-oil sectors.

The potential to simulate UAE economy through tourism sector has played a crucial role in promoting UAE to the world and acknowledging the economic transformation locally and internationally. Currently, UAE is leading the tourism sector in the region through modern and innovative projects. In addition, UAE is focusing on attracting business exhibitions, conferences and events to promote UAE as main target in the Middle East. According to a research done by a leading tourism forum, within the coming ten years tourism sector in the UAE will increase to almost 15% of the GDP which worth Dhs 277. 8 billion annually (Big Future Foreseen for UAE Tourism).

CONCLUSION

UAE successfully divers its income from oil sector to tourism sector which assist UAE in becoming one of the international hot spots for tourism. We can see the recent result in the GDP of the country for the year of 2012. As a proof, the UAE invested a lot in hospitality to increase the outcome. In 2012 UAE drew almost 10 Million visitors. The hospitality sector in UAE increased to 67% growth as revenue to $7. 5 billion by 2016 from $4. 5 billion in 2011.

REFERENCES

  1. “Big Future Foreseen for UAE Tourism. ” The National. N. p. , n. d. Web. 20 Apr. 2012.
  2. “Changing Trend of Tourism Industry in Dubai. ” Slide share. N. p. , n. d. Web. 27 Apr. 2013.
  3. “A SWOT Analysis of ASEAN Tourism. ” Travel Daily News. N. p. , n. d. Web. 26 Oct. 2007.
  4. “Tourism in Dubai. ” Wikipedia. N. p. , n. d. Web. 27 Apr. 2013.
  5. “The Traditions as Tourism Products: Analysis of the Case of Dubai. ” RERO. N. p. , n. d. Web. 19 Dec. 2011.
  6. “UAE Tourism Sector Set for More Growth in 2013. ” Ameinfo. N. p. , n. d. Web. 10 Apr. 2013.

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