Changing Trends of Tourism Industry in DubaiPresentation Transcript * 1. Changing Trends ofDubai Tourism Industry Pooja Kalloor Swapna Malekar * 2. Objective Dubai Tourism Ecosystem Perception of Dubai amongst Tourists Understand different types of Tourism – Business, Retail and others Challenges of Dubai as a Tourist destination * 3. Destination Dubai Safe Compact Connectivity Affordable Luxury Special Events Cruises * 4.
Key Performance Indicators WEF’s T&T Competitiveness Report 2011 UAE ranked Regional rank –139 countries 30th 1st Destination Air transport – Government’s Marketing 4th support – 8thCampaign – 1st Rules & Affinity for T&T Regulations – – 25th 38th * 5.
Key Performance Indicators MasterCard Index of Global Destination Cities 2011 Growth of Dubai ranked 9th – International 132 cities International Visitors – 6th. Visitors. 7. 9m 17. 3% Growth of International Regional Ranking InternationalVisitor Spending – – 1st International Visitor Spending – 18th. $7. bn Visitors 3rd. 24%Regional rank 3rd Regional Rank – Regional Ranking Growth rate of Growth of – 1st International International International visitor visitor spending visitors spending 3rd * 6. Tourism Industry in Dubai’s Economy 6% empl oyme nt Direc t– 21% Indirect – 35% * 7.
From a Desert to a Dream * 8. Birth of Tourism Industry 1992 –1960 – Dubai Dubai 1971 1985 – FinanInterna – Port Emirate cial tional Rashi s CentrAirport d Airlines e 1966 – 1977 1989 – 1996 – DPC – Dubai Dubai discov Jebel Tourism Shoppin ered 4 Ali Board g offshor Port Festival e fields * 9.
Birth of Tourism Industry 2010 – 2010 – Burj Definitely Khalifa & Al Dubai Maktoum Campaign 2001 – Dubai International Summer Airport 1999 – Surprises Burj Al Arab1997 –DTBrenamedto DTCM * 10. Dubai Tourism Ecosystem * 11. HotelsAirport Tourism Airlines Retail * 12. Hotel Occupancy Hotel Apartment Hotel Room90%80%70%60%50%40%30%20%10%0% * 13. Growth of Hotel & Hotel Apartments Hotel Hotel450 Apartment400350300250200150100 50 0 * 14. Number of Guests Hotel Guests Hotel Apartment Total10,000,000 Guests Guests 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 ,000,000 1,000,000 0 * 15. Number of Guest Nights Hotel Guest Hotel Apartment Total Guest30,000,000 Nights Guest Nights Nights25,000,00020,000,00015,000,00010,000,000 5,000,000 0 * 16. Average length of stay Hotel Hotel Apts. Total5. 04. 54. 03. 53. 02. 52. 01. 51. 00. 50. 0 * 17. Guests by Nationality • UAE : Only country contributing 10. 4% of total guests. Avg. length of stay at 2. 1 days. Arab • AGCC : As of 2010, contribute 13% of total guests. % increase in guests – 30% only. Avg. length of stay is 2. days. • 161% growth since 2001. South Asia is major contributor of guests. Asia • China : 2nd highest growth of 1454% since 2001. continual rise in guests. • India, Philippines, Singapore and Indonesia • Growth – 382% since 2001. • USA : Approx. 70% of guests from theAmericas Americas come from USA. Growth at 416% since 2001. • As of 2010 28% contribution to total guests. Highest Avg. length of stay at 3. 5Europe days. • UK & Germany : Relative decline post recession. * 18. Highlights1-star forms the highest no. f hotels5-star hotels have highest no. of rooms. Highest occupancy seen in 5-star hotels at73%Bed Occupancy highest in 5-star hotels at 80%Arabs, Asians, Africans, Europeans andAmericans prefer 5-star accommodationRecession changed the dynamics of nationalitywise visitors * 19. Airlines • Emirates Airline launched. Oct 1985 25th – First flight to Karachi • Boeing 737 and Airbus 300 B4. • Placed order for 243 aircraftsExpansion since 2001 worth USD 60 billion. • 2008 – Emirates dedicated • Terminal 3. 15 A380s – Fleet – 170. largest in the world.
Current • Destinations – 115 • Countries – 60 • Shanghai, Amsterdam, Prague,Destinations Madrid, Basra, Al Medinah, Dakar * 20. Dubai AirportDubai International Dubai World Airport (DXB) Central (DWC) 4th busiest Opened in June 2011 3 Terminals Phase 1 – Cargo operations 60 mppa Completion in mid 2020s Rise to 75mppa -> dedicated Capacity – 160mppa and 12 A380s Concourse 3 opens million tonnes of cargo * 21. Dubai Airport Passenger Traffic Passenger Traffic (in Thousands)600005000040000300002000010000 0 * 22. Retail Dubai DubaiDSMG – Shopping Summer Gold Souk 1998 Festival – Surprises 1996 One World.
On Dubai One Family. Big Fun for InternationalShoppin One Festival Little Ones Gold Trade g Mall route 2011 – Dh. Group 15. 1 billion All indoor Biggest activities at physical re- Modhesh distributors 70% of total Fun City of Gold revenues Dh. 3. 37Over 40 billion, 2. 2 malls Low profit – Sales grow million high volume 10-over 50% visitors (2009) * 23. Dubai Duty Free Single Largest Airport Retailer in the World Investment Corporation of Dubai : Sole Owner of DDF 2010 : Revenues of 1. 3 billion Accounts for 5. 4% of airport shop sales, 3. % of global duty free and travel retail sales. They hired people from Ireland, with DDF being the worlds single largest airport retailer. It has toppled Seoul and Heathrow and then toppled Africa and Kenya. Chocolates and Perfumes are consumed the largest in DDF. * 24. Types of Tourism * 25. SpeciaLeisur Busine l Cruise e ss Events * 26. Tourist BreakupBusines s 32% Leisure 68% * 27. Leisure Tourist Breakup Holiday 3% 3% 4% Visit Friends and 4% relatives4% Shopping 27% Beach break8% Stopover To see Dubai 10% Cruise Passenger 21% 16% Weather Leisure events * 28.
Business Tourist Breakup 5% 2% Business Meetings 9% MICE 35% FIT22% Air and Ship crew Business Project 27% Education & Training * 29. Business TourismDubai World Trade Center (DWTC)Dubai International Convention & Exhibition CentreDubai Govt. & Dubai Events and PromotionsEvent Management companiesAverage of 3 events per day in Dubai. Each exhibitor brings a team of 4-7 members for aperiod of 1 week. * 30. Special Events Tourism Arabian Travel GITEX Arab Health MarketDubai World The Hotel Gulf Food Cup Show Exhibition Dubai International Boat Show * 31.
Cruise Tourism • March 2001 • 15 minutes drive from Dubai InternationalDubai Cruise Airport • Named world’s leading cruise port 5th time at Terminal World Travel Awards 2011 • Serves two Ocean-going cruise ships • Combined capacity of 7000 passengers • Global Marine Terminal Operator • Expansion of Port Rashid by end of 2012 to DP World cater to five cruise ships. • Eventual goal of seven cruise ships and 625,000 passengers by 2015 • 2009 – 2010: 30% growth in tourist traffic. 60,000 to 390,000 passengers • 2011: 135 ships, 375,000 visitors Growth • 58% by end of 2015 • Abu Dhabi, Qatar, Jordan, Oman investing heavily in Cruise terminals * 32. Summary Definitely ITB, Berlin, G Dubai DTCM 2011 ermany Campaign – 2010• Dept. of • Participated • 22nd • Destination Tourism and in 25 consecutive Marketing Commerce exhibitions year. • Contempora Marketing worldwide • 10,000 ry marketing• 18 overseas and 10 exhibitors techniques representati workshops from 180 – social ve offices as part of countries. edia, ratin their 108,000 gs, reviews marketing trade plan. visitors. 78 • Spain, India, companies participated Switzerland, from Dubai Istanbul, Uk raine, Baltim ore, Beijing, Singapore etc. * 33. Other Types of Tourism Special Needs Green Tourism * 34. Key Findings * 35. Sudden growth of Hotels in 2004 Terrorist attacks of Sept 2001 in USA Dubai marketing itself on global scale in 2001-2002 Reputation building campaign as a safe tourist destination. Opening up of New Markets Dubai Reinvented itself Real boom in tourism for Dubai came in 2003.
Destination Marketing * 36. DTCM & Emirates Airlines DTCM played a major role in promoting Tourism Road shows, sales trips : Destination Marketing Emirates Airlines did destination marketing for Dubai even before DTCM. Familiarization trips in 2002 (to promote Dubai as a safe destination after the 9/11 attacks ). DTCM supported this. Brussels market opened Up to 2 million people/year Copenhagen (Scandinavia market) opened up. After Sept 2001, the demographics of the visitors changed. * 37. Tourist Visa misuse People on a Business visit :Tourist visa.
Vast difference in the statistics presented by the Visa and airport authority and the statistics shown by the hotel authorities. No system in check. Abuse of ‘Tourist Visa’ : Business Visa difficult to acquire. * 38. Self-Sufficiency People from neighbouring Emirates and countries visit Dubai Self-sufficiency for Dubai. Healthy sign Insulation from the economic turmoil in the rest of the world. * 39. Arab Springs Israel Bombing, Egypt uprising, Tehran etc. People send their families and kids to Dubai since it is considered it is, a safe tourist destination.
Positive impact overall due to Arab spring on Dubai Dubai : safe from this instability. * 40. Public Beach -Dubai Scarcity of public beaches in Dubai. If 1 % of the total population decides to use the public Jumeirah beach on any given single day simultaneously, they won’t be able to do so, since there is not enough beach available! City Hotels and Beach Hotels * 41. Real Estate Bust Real Estate Bust in 2008-2009, it intends to lift up now in a marginal way. Around 430 projects half completed.
Real estate prices will continue to go down for a few more years. Government will have to demolish them at some point of time. Dead buildings * 42. Collaborating In 1999, IBM, around 4000 tourists were expected for a conference. Lack of hotel apartment to put up with 4000 guests. 16 Israelis: Special Treatment Government agencies and other private organizations joined hands to get this done. * 43. Sustainable Tourism Mirdiff city center – Conservation of Energy Internal Tourism DSS – Generates Revenues in an Off Peak season * 44. Challenges * 45.
Not enough competitionDubai promotes Open Skies policy (to ensure sufficientcompetition in the logistics cluster)Competition between shopping and tourism sector is still low. Emaar Malls, another government owned entity controls 49%of the retail space in Dubai. Emirates Airlines and FlyDubai, both government owned, stillcontrol 62% of the Dubai Airport. Only the Hotel sector is competitive, with 47 internationalbrands present despite Jumeirah Group’s prominence. * 46. DTCM lacking DTCM has led the international efforts to promote Dubai’s tourism sector.
However little has ben done by DTCM to promote broad based collaboration by the players in the Tourism sector. Efforts of DTCM domestically : 1996 : Dubai Shopping Festival 2001 : The Summer Suprises 2009 : Keep Discovering Dubai campaign 2010 : Definitely Dubai Campaign Necessity to work together * 47. Global economic slowdownThe financial crisis of 2008 and the overall global economicslowdown : impact on the number of tourists entering Dubai. Dubais tourism industry suffered in the second half of 2009 and thefirst half of 2010.
Hotel Occupancy rates fell to an all time low, with many projectsgetting cancelled and postponed due to recession and downwardeconomic condition. The dirham is pegged against the dollar, the decline of euro andpound against the dollar is putting pressure on the tourism industryin Dubai. * 48. Visa RulesImpact of lenient tourist visarules in neighboring countrieslike Qatar on Dubai. Visa and immigration rules moretourist friendly in order to attractand retain the tourist population. * 49. CompetitionStiff competition from less expensive places like Lebanon andEgypt.
Qatar has been touted as the next tourist destination. Dubai also faces tough competition from well-establishedtourist destinations likeAustralia, Malaysia, Maldives, Caribbean, SouthAfrica, Thailand, and Turkey. * 50. Ecological ImpactDubais extensive diversification Tourism program Negativelyaffect the bird sanctuaries and eco reserves. The Jumeriah coastline : ErosionUpset the delicate ecological balance of the region andincreased erosion of the coastline. Unrestricted construction and man made islands in and aroundDubai Disturbed the flow of water around these islands * 51.
Rising Cost of the HotelsDubai ranked highest globally in terms of average room rate in October 2010, withan average of $375 during the month. To lure travellers some hotels in the emirate have begun offering special packagesand discounts of 30% or more. Since Dubais currency is pegged against the dollar that means that hotel roomsovernight have almost become 20%-25% more expensive for that consumer set. Companies adopting essential travel only policies. One result of declining occupancy is that hotels may start to go after certainsegments that they traditionally may not have targeted * 52. Survey Analysis ResultsFactor Analysis 53. Tourist AttractionLeisure Safety & Infrastructur e Weather Cultural Experienc e Cosmopolita n Shopping nature /Retail * 54. Survey Result AnalysisNeed Gap Analysis * 55. Dubai Weathe Duty r Overall Free Shopping Experience Gold Beach Souk Desert DSS Dubai Special Shopping Night Life Festival Events Tourist Safety Attraction s Resorts & SpasExpectations and Perception Expectations andare same Perception are different * 56. FutureTrends * 57. Dubai has plans to expand its current airport infrastructure to include Concourse 3 dedicated to A380s by 2018, forecasting to serve 90M passengers with an investment of $7. Bn. It has plans of building Dubai World Central International Airport – Al Maktoum by 2030, hoping to cater 120M passengers. Also, according to UN World Tourism Organization (UNWTO), the number of tourists visiting the Middle East is expected to grow by up to 9% in 2012. * 58. Image Rebuilding Trend From the last 7-8 years, Dubai has stepped down from an image of an exclusive rich place to a place which caters to everybody. There is better collaboration to be seen between the different Emirates on tourism. Creation of Federal authority of tourism.
More diverse markets like South America and Africa are expected and should be seen in Dubai. The trend is towards more of Leisure tourism, Business Tourism, Sports tourism and Special Interests Tourism. * 59. Collective Marketing is needed for the region to boost the overall demand (similar to Scandinavia’s marketing under the ‘Go Scandinavia’ slogan) For tourists with connecting flights or with Cruise stopovers, 5 to 12 hour tours similar to Singapore’s Changi Airport ‘s tours, discounted hotel rates for tourists staying up to 24 hours can be some future trends to be seen for Dubai. * 60.
Family Tourism on its way * 61. DecliningFunctioning of DTCM * 62. ContinuedInvestment innew hotelsdespitelevelling off ofdemand. * 63. SWOT Analysis – Dubai * 64. Strengt- Favourable location as a global Weaknehub hs ss No regional collaboration- Abundance of cheap immigrantlabour Cultural Restrictions- High Quality of Air, Road and Sustainable TourismPort Infrastructure No National Tourism- Collaboration between the Boardgovernment agencies- Nil Political turmoil Opportunity Threat Collaboration between s different Emirates (UAE) Competition from other regions Targeting of Medium Spenders * 65.
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NEW YORK, April 23, 2013 /PRNewswire/ — Reportlinker. com announces that a new market research report is available in its catalogue: The Future of Airlines in the UAE to 2017: Market Profile http://www. reportlinker. com/p01161348/The-Future-of-Airlines-in-the-UAE-to-2017-Market-Profile. html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Airline Synopsis This report provides an extensive analysis of the airlines market in the UAE: It details historical values for the airlines market in the UAE for 2007–2011, along with forecast figures for 2012–2016 •It covers key trends and barriers in the travel and tourism industry in the UAE • It provides market data on tourism demand factors and tourism market indicators for the travel and tourism industry in the UAE • It provides a detailed analysis on the key trends, market size and forecast and key performance indicators in the airlines market in the UAE • It outlines the competitive landscape along with the leading players operating in the airlines market in the UAE
Summary “The Future of Airlines in the UAE to 2017: Market Profile” is the result of extensive research on the travel and tourism industry covering the airlines market in the UAE. It provides detailed analysis on key trends and issues, market size and forecasts, key performance indicators and competitive landscape in the UAE airlines market. The report also includes an overview of the UAE travel and tourism industry covering key trends, barriers to tourism and tourist attractions with a detailed SWOT analysis of the tourism industry in the UAE.
Review and forecast data for tourism demand factors and market indicators has also been included in the report. This report also provides an overview of the leading companies in the airlines market in the UAE. Scope The report provides in-depth market analysis, information and insights, including: • A detailed coverage of the travel and tourism industry in the UAE • A comprehensive analysis of the airlines market in the UAE • Profile of the top airlines operating in the UAE
Reasons To Buy • Gain insights into the travel and tourism industry covering the airlines market in the UAE • Take strategic business decisions using historic and forecast market data provided in the report • Identify key trends and issues, key performance indicators and competitive landscape in the airlines market in the UAE Key Highlights As tourism flows to Asia Pacific continue to rise, are ASEAN countries set to reap the rewards?
A study commissioned by the World Bank to facilitate the integration of the ASEAN travel and tourism industry into the broader economy has come up with a detailed analysis of the strengths, weaknesses, opportunities and threats (SWOT) of the status quo. This is the first study of its kind since ASEAN tourism has only been seriously promoted for the past two decades. Thus, its findings have tremendous relevance to other regional and sub-regional groupings as they embark upon similar initiatives. ASEAN’s objective is to strengthen the interdependence of its member economies and encourage its members to adopt “Prosper Thy Neighbour” policies.
Over the years, ASEAN heads of state have passed a number of resolutions and statements affirming this direction, e. g. the ASEAN Vision 2020, the Vientiane Action Programme (VAP) 2004–2010 following both the Hanoi Plan of Action (HPA) 1999–2004, the Initiative for ASEAN Integration (IAI) and the Roadmap for the Integration of ASEAN (RIA). Eleven priority sectors of integration have been identified and included in the ASEAN Framework Agreement for the Integration of Priority Sectors, signed in Vientiane in November 2004, along with the VAP.
Each of these priority sectors is developing a roadmap for economic integration, with detailed and specific measures to be implemented from 2005 to 2010, with active involvement from the private sector. These priority sectors are (1) agro-based products; (2) air travel; (3) automotives; (4) e-ASEAN; (5)electronics; (6) fisheries; (7) healthcare; (8) rubber-based products; (9) textiles and apparels; (10) tourism; and (11) wood-based products. Tourism has a strategic role to play in ASEAN economic growth as well as in enhancing the rich and diverse heritage of the region.
The ASEAN leaders at the Eighth ASEAN Summit in 2002 signed the ASEAN Tourism Agreement for ASEAN Co-operation in Tourism. This agreement covers various areas, including the facilitation of tourism investment within the region. International visitor arrivals to ASEAN countries totalled more than 50. 8 million by the end of 2005, reflecting an increase of more than 4. 8 percent since 20041 (see Table 1). The region has remained resilient in attracting improved international arrivals, and ministers from ASEAN member countries have expressed the importance of the industry working together toward a common goal.
There is a general view, however, that barring some of the internal and external shocks that have affected visitor arrivals, much more can be done to boost visitor arrivals to, within, and from ASEAN. As a result, the World Bank commissioned a Japan-based consultant to conduct a SWOT analysis of the ASEAN region, particularly in the contexts of promoting an integrated single destination, increasing intra-ASEAN travel and developing world-class products. The findings are as follows, with some slight editing for clarity and with additional information provided by the PATA Strategic Intelligence Centre. STRENGTHS Well-established tourism in member countries: Singapore, Malaysia, and Thailand already have high annual visitor arrivals. * Political awareness: The importance of tourism is well recognised among many ASEAN countries, as highlighted through ministerial ASEAN meetings and summits. * A full-time ASEAN Secretariat already exists to coordinate cooperation and integration efforts. * Safety: ASEAN member countries have traditionally been considered safe and visitor-friendly. * Well-developed business sectors: e. g. Singapore, Malaysia, Thailand and Indonesia are also being joined by emerging economies, such as Vietnam, Lao PDR and Cambodia. Well-developed entertainment options: Countries already offer shopping, nightlife activities, etc. * Well-developed linkages to external markets are in place. * Greater Mekong Subregion (GMS) alliance: ASEAN integration should lead to synergistic effects. * Access: e. g. GMS countries may not necessarily require air travel. * Member countries have unique destination images. * World-class airports facilitate travel: e. g. Singapore Changi and Kuala Lumpur International Airport, as well as the region’s newest airport, Suvarnabhumi International Airport in Bangkok, set to open later in the year. Diverse tourism resources within the region range from nature to culture, religion, sports, and health and wellness. * Seasonality patterns are similar for all ASEAN member countries, which is conducive to multi-country tour patterns. * Some member countries have widespread English language capability. * Well-developed intra-ASEAN tourism already exists. Short-distance travel potential is well suited to the regional population’s income. WEAKNESSES * Countries are at different levels of inbound and outbound market maturity. * Countries are at different levels of manpower standards. Possible competing strategies are in play: e. g. more than one country aspiring to be a strategic hub, or countries competing to be world leaders in particular attractions. * Poor infrastructure in some countries. * Progress may be slow due to extra levels of policy-making, i. e. ministries of tourism/commerce and ASEAN, which may also conflict. * Most existing collaborative networks among countries are weak. * Infrastructure improvements tend to fall outside of ASEAN initiatives. * Under-developed market intelligence remains unresolved. * Poor information and communications technologies (ICT) persist in some countries.
Some member countries still focus on visitor arrival numbers, with less attention to tourism yields and dispersion. * There is inactive collaboration with national flag carriers and discrepancies exist. * Marketing campaigns are not integrated and lack a consistent message in building tourist destination images. * Trade and investment need to be considered, as well as inter-firm linkages. * Visas are required for travellers from outside the region. * Some source markets are niche-oriented and do not align well with a multi-destination approach. Preference given to visit one country: A recent survey suggests that the majority of visitors to the GMS visit only one country at a time. Only around 30 percent of tourists visit at least two countries, and 80 percent of visitors to Thailand visited only that country. * National priorities in marketing often override regional objectives. * Time-consuming transit delays occur between countries. * The ASEAN name is not well-known in long-haul markets. * Each country conveys a similar image as a tourist destination; e. g. they have similar tourism resources, such as beaches, rainforests and cultural assets. Some countries do not have offshore tourism marketing offices. * Evidence of poverty in some countries is generally unattractive to international tourists. * Market characteristics of some external countries are not well-known, e. g. China (PRC) and India. * Not all member countries are attractive to neighbouring tourism. OPPORTUNITIES * Proximity to large and growing Asian markets, such as China (PRC) and India, and high-expenditure markets, such as the Middle East, Japan, Chinese Taipei and Korea (ROK), could be beneficial. * Mekong tourism development initiatives could have benefits to ASEAN, e. g. nfrastructure improvements. * ASEAN packages could have more variety, such as city, ecotourism, etc. * Liberalisation: Ease of visa requirements and government regulation of airlines could be helpful. * Business tourism: ASEAN member countries have close economic relationships with non-ASEAN countries, e. g. India, Japan, China (PRC) and Australia. * Develop the meetings, incentives, conventions and exhibitions (MICE) market. * Special interest tours: Vietnam, for example, is promoting flower tourism in Japan. * The ASEAN region is suited to hub travel trends. * World-class events could be leveraged. Two-way tourism could be better promoted. * Intra-regional travel could be increased for leisure, business, study and MICE. * Visiting friends and relatives (VFR) tourism: Economic migration within ASEAN countries activates VFR tourism. THREATS * Unstable political conditions in some countries impact tourism development. * Regional crises, e. g. terrorism, avian flu and tsunami, discourage tourism. * Contagious disease and its media coverage may affect international travel demand. * Lack of crisis management readiness persists in some countries: Risk management contributes to a positive revival of tourist destinations in many cases. Safety and security are not consistent; conversely, unnecessarily negative travel advisories are also troublesome. * Currency fluctuation continues to be a risk. * Ongoing ethnic and religious conflicts are potentially problematic. * National tourism organisations (NTOs) lack the resources to manage cooperation agreements. * NTOs lack ownership in plans which have donor assistance. * Proliferation of high-level political objectives without frontline implementation indicates a lack of stakeholder-driven strategies. * ASEAN campaigns have not always been highly successful, e. g. ASEAN hotel and tour ‘passes’. Full integration is threatened by less-mature countries having weaker voices. * Economic and development gaps divide developed countries and least-developed countries in the region. * The ASEAN campaign is dependent on contributions from NTOs, which tend to be low. * Other regional strategies: e. g. the GMS initiative, which also promotes a single destination, and though synergy may be gained, there may be conflicting strategies or exhaustion of resources from individual member countries. VISA LIBERALISATION It is generally recognised that the ASEAN region is its own best source market.
A key requirement for economic integration is ease of travel among ASEAN countries, similar to that within the European Union. Hence, the ASEAN Framework Agreement on Visa Exemption which was signed in Kuala Lumpur on July 25, 2006. This is in line with the ASEAN Tourism Agreement, signed on November 4, 2002 in Cambodia on the facilitation of intra-ASEAN travel, and the ASEAN Framework Agreement for Integration of Priority Sectors, signed on November 29, 2004, which commits ASEAN member countries to providing visa exemption for intra-ASEAN travel by ASEAN nationals.
The ASEAN Framework Agreement on Visa Exemption lays out a set of general principles and guidelines toward establishing and/or renewing bilateral agreements among member countries on visa exemption for their respective citizens travelling within the ASEAN region. At the same time, the wording of the agreement includes a number of ‘escape clauses,’ which indicate that it could be some time before the agreement becomes universally applicable. For example, Article 1 states: “Member Countries, where applicable, shall exempt citizens of any other Member Countries holding valid national assports from visa requirement for a period of stay of up to 14 days from the date of entry, provided that such stay shall not be used for purposes other than visit. ” The key words here are “where applicable”. They are repeated n Article 7, which says “Member Countries, where applicable, shall negotiate and conclude separate bilateral protocols to implement this Agreement as soon as possible. The implementation of such bilateral protocols shall come into force on the date as mutually agreed by the respective Member Countries. ”
In essence, the agreement leaves it up to the individual governments to negotiate the visa waivers bilaterally. However, that is clearly necessary given the disparity in economic development between the various countries and the need to avoid potential problems regarding illegal migration from developing to developed countries. There is now movement toward the proposed development of an ASEAN Business Travel Card and the introduction of a special ASEAN Tourism Professional (ATP) permit, which would facilitate the temporary movement of tourism professionals.
This would allow shorter time-frames for granting visas for temporary movement, accomplished through electronic means, transparent application processes, simplified renewal and transfer procedures, and recourse mechanisms to ascertain the status of an application and reasons for rejection. STRATEGY TO ACCELERATE THE INTEGRATION OF TOURISM SERVICES AND AIR TRAVEL IN ASEAN A strategy paper produced by the ASEAN Secretariat notes that in addition to visa regulations, tourism is highly dependent on other factors, such as financial services, health services, and air, maritime and road transport.
The 37th ASEAN Economic Ministers’ Meeting (AEM) in Vientiane in September 2005 agreed that the “integration of tourism and air travel can be done at an even faster pace”. The Ministers further agreed “to identify additional measures to accelerate integration in these two services sectors,” and instructed relevant officials to work toward the formulation of these measures. Liberalisation of the airline industry in ASEAN is well under way to improve quality of service, lower air fares, and make airlines more competitive. Note: the strategy paper was crafted before oil prices hit US$75 a barrel. ) To fast-track the integration of the air travel sector, the ASEAN Transport Ministers’ Meeting, held on November 17, 2005 in Vientiane, tasked the Senior Transport Officials Meeting to consider Singapore’s proposals to further improve the content and timelines on the Measures for Passenger Air Services Liberalization under the Roadmap for Integration of the Air Travel Sector. Singapore’s proposals included the following main suggestions: Accelerating the timeline for Unlimited (or No Limitations on) 3rd and 4th Freedom Traffic Rights for scheduled passenger services between all ASEAN capital cities to December 2006, from the original December 2008 timetable; * Expanding coverage to all ASEAN cities for Unlimited (or No Limitations on) 3rd and 4th Freedom Traffic Rights for scheduled passenger services by December 2008, instead of only for ASEAN capital cities; * Expanding coverage to all ASEAN cities for Unlimited (or No Limitations on) 5th Freedom Traffic Rights for passenger services by December 2010, instead of only between ASEAN capital cities.
Additionally, the proposals called for: * Development of an ASEAN Multilateral Agreement on Air Services, for conclusion in due time; * Development of a conceptual framework for the establishment of a Single Aviation Market in ASEAN. THE FREEDOMS OF THE AIR First Freedom: To fly over another country’s airspace First Freedom over-flight rights have historically been the least controversial because they do not pose any competitive threats to national carriers of the countries concerned.
However, due to strategic military concerns, these over-flight privileges have not been easy to secure in some rare cases. Airlines typically pay for the rights to over-fly another country. For example, the U. S. charges foreign airlines US$35 per 100 nautical miles that they operate through its air space. Second Freedom: To make a technical stopover in one country en route to another Like First Freedom rights, Second Freedom rights do not pose any commercial threat to national airlines.
In fact, these rights generate revenue for the stopover country through fuelling and handling services provided by the airports involved. A good example of a Second Freedom stopover is Anchorage in the US, where many airlines flying between Asia and North America make refuelling stops, without picking up or discharging passengers. Third Freedom: To carry traffic to a second country. Fourth Freedom: To carry traffic back from a second country Taken together, the Third and Fourth Freedom rights are what constitute a round-trip journey from one country to another.
These rights are typically granted on a reciprocal basis by the two countries concerned. For example, Thailand and Singapore might agree to grant one another’s airlines a total of six frequencies per day between the two countries, with a right to pick up and discharge passengers at points of origination and destination. Fifth Freedom: To carry traffic between a second and third country Of the different freedoms, Fifth Freedom rights are historically the most politically contentious as they involve at least three governments rather than the usual two.
For example, for Thai Airways to fly a route from Singapore to Indonesia, Thailand would need Fifth Freedom rights from both Singapore and Indonesia. Use of Fifth Freedom rights by an airline of a third country is often seen as encroaching upon the “home market” traffic of the two countries that have granted the rights; thus, some governments seek to restrict the percentage or number of seats that an airline can sell on a Fifth Freedom sector. Sixth Freedom: To carry traffic through one’s home country to a third country
Because Sixth Freedom traffic neither originates nor terminates in the home market of the airline concerned, some governments contend that this traffic is actually a special category of Fifth Freedom traffic and should be subject to them same restrictions. Airlines that are in the best position to exploit Sixth Freedom rights are those that have their hubs in geographically advantageous places, such as between major source markets and destinations. Seventh Freedom: To carry round-trip traffic between a second and third country, without connecting through the home country
Within most areas of the world, the granting and exercising of these rights is very rare. This distinguishes them from Fifth Freedom rights whereby the airline’s route – but not the traffic – both originates and terminates outside the home market. However, Seventh Freedom flights are quite common within the European Union(EU). Finnair (Finland), for example, operates a stand-alone route between Copenhagen (Denmark) and Oslo (Norway). Outside of Europe, however, Seventh Freedom routes are quite rare.
Eighth Freedom: To carry domestic traffic within a second Country Like Seventh Freedom Rights, Eighth Freedom rights are also extremely rare outside of the EU and are typically reserved for only the national carriers of the country concerned. However, many airlines are currently seeking these rights in exchange for more liberal Fifth Freedom rights. Source: PATA 2001. ” Understanding the Freedoms of the Air: A Framework for Airline Capacity Regulation. ” Land and sea transport are also being looked at in a similar light.
In terms of tourism-related land transport, ASEAN is seeking technical support from Japan to implement the agreed plans from the Vientiane Action Programme (VAP), namely, “the harmonisation of road signage for the ASEAN Highway, to include the requirements for tourism purposes and road safety. ” However, it is likely that this will be a resource-consuming process. Meanwhile, for tourism-related sea transport, ASEAN will endeavour to identify new cruise tourism corridors/areas, enhance cruise promotional activities, and improve cruise port and shipping infrastructure, including security.
Other identified areas for promoting the integration of tourism into ASEAN economies include: * Tourism investment: ASEAN member countries need to identify any investment gaps and impediments, as well as develop strategies to assist the tourism industry and attract further investment. * Liberalisation of the tourism sector: The ASEAN strategy paper suggests that member countries may consider increasing the foreign equity participation for the tourism sector to 49 percent by 2006, 51 percent by 2008, and 100 percent by 2010.
At the same time, they should ensure that liberalisation creates fair conditions of competition for growth of all member countries’ tourism services and effective safety nets for Cambodia, Lao PDR, Myanmar and Vietnam (CLMV countries). * ASEAN tourism promotion and marketing: In today‘s crowded marketplace, building and maintaining brand value is the key to destination and business success. The strategy paper says that while a clever advertising theme or an ingenious marketing plan is important, member countries should also consider the creation of an ASEAN brand identity, encompassing total destination management. To succeed, ASEAN needs to clearly differentiate themselves from competitors, consistently deliver on their promises, and simplify choices for customers in order to deliver a memorable and enriching brand experience at every critical point of contact with ASEAN destinations. * Tourism standards: ASEAN tourism standards for a wide range of tourism sub-sectors (e. g. hotels, restaurants, tour operators, guides and transportation services) are currently being planned for development by 2010.
At that time, ASEAN would be positioned as a quality destination with enhanced service quality, and would have the ability to create a positive image and promote the competitive advantage for ASEAN tourism on the world market. * Human resource management: A proposed strategic plan for the preparation and implementation of mutual recognition arrangement (MRA) should be underway by mid 2006, following the scheduled completion of the ASEAN Minimum Common Competency Standards for Tourism Professionals (ACCSTP) framework, which covers 33 job titles in the hotel and travel services industry.
The ASEAN MRA for Tourism Professionals should be introduced by 2007 instead of 2008. To support the ACCSTP and the establishment of a Regional Qualification Framework and the Recognition System, a common tourism course curriculum for ASEAN member countries should be identified and introduced. CONCLUSION Due to the collapse of the World Trade Organization talks, regional and sub-regional co-operation is expected to become a hot topic for discussion. The roadmap being charted by ASEAN countries has considerable relevance to other regions across the Asia Pacific region, especially throughout South Asia and Northeast Asia.
Over time, these regions and sub-regions will move toward closer integration, yielding tremendous benefits for all. The Member Countries of the Association of Southeast Asian Nations (ASEAN) are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam http://www. traveldailynews. com/columns/article/20490/a-swot-analysis-of-asean Travel and Tourism in the UAE to 2017 Timetric, March 2013, Pages: 156 * ————————————————- Description * ————————————————- Table of Contents ————————————————- Companies Mentioned * Enquire before Buying * Send to a Friend Tourism is a key pillar in the UAE’s strategy to reduce its dependency on oil revenue. The country’s tourism strategy works in partnership with its strategy to develop cities, primarily Dubai and Abu Dhabi, as major airline hubs. As the UAE lacks natural and cultural resources, it has built its tourism sector around luxury living, shopping, exhibitions, sports and high-profile construction projects such as the Jumeirah Palm, an artificial palm-shaped archipelago.
The investments paid off, as tourism now forms 13. 5% of GDP. However, in line with the global economic slowdown, the UAE suffered a major decline in tourism in 2009, and while the country has made up for the loss, recovery has been slow. To boost tourism over the forecast period, the country has announced a string of high-value projects such as Mohammed Bin Rashid City, which consists of 100 hotels, the world’s biggest shopping mall and a Universal Studios theme park, and the Jebel Ali complex, which will feature five theme parks and a replica of the Taj Mahal.
However, the projects face the risk of running aground due to bottlenecks in financing, a factor which could damage the country’s tourism as it relies heavily on these large-scale projects as key attractions. Synopsis The report provides detailed market analysis, information and insights, including: – Historic and forecast tourist volumes covering the entire travel and tourism sector in the UAE – Detailed analysis of tourist spending patterns in the UAE The total, direct and indirect tourism output generated by each sector within the UAE travel and tourism sector – Employment and salary trends for various categories in the UAE travel and tourism sector, such as accommodation, sightseeing and entertainment, food-service, transportation, retail, travel intermediaries and others – Detailed market classification across each category, with analysis using similar metrics – Detailed analysis of the airline, hotel, car rental and travel intermediaries industries Scope This report provides an extensive analysis related to tourism demands and flows in the UAE: It details historical values for the tourism sector in the UAE for 2008–2012, along with forecast figures for 2013–2017 – It provides comprehensive analysis of travel and tourism demand factors with values for both the 2008–2012 review period and the 2013–2017 forecast period – The report makes a detailed analysis and projection of domestic, inbound and outbound tourist flows in the UAE – It provides employment and salary trends for various categories of the travel and tourism sector – It provides comprehensive analysis of the airline, hotel, car rental and travel intermediaries industries with values for both the 2008–2012 review period and the 2013–2017 forecast period Reasons To Buy Take strategic business decisions using historic and forecast market data related to the travel and tourism sector in the UAE – Understand the demand-side dynamics within the UAE travel and tourism sector, along with key market trends and growth opportunities – Identify the spending patterns of domestic, inbound and outbound tourists by individual categories – Analyze key employment and compensation data related to the travel and tourism sector in the UAE Key Highlights – In an attempt to wean the country off its dependence on oil-based revenue, the UAE has invested heavily in tourism and other related service sectors. As a result of these investments, which center on the strategy to build Dubai and Abu Dhabi as major airline hubs and luxury destinations, tourism’s total contribution to GDP stood at 13. 5% in 2011, according to the World Travel & Tourism Council (WTTC). – While oil continues to be the UAE’s key revenue generator, the country has transformed itself into a major hub for airlines, shopping, finance, sports, adventure and hospitality.
Each of the seven emirates are competing to follow a similar strategy and this has resulted in the development of several cities such as Dubai, Abu Dhabi, Sharjah and Fujairah offering excellent tourism infrastructure. – As a large part of the country’s population is made of expat workers, domestic tourism suffers as most workers prefer vacations in their home countries. – Climate dictates the flow of inbound tourism in the UAE, with the cooler months of October to March being the busiest months. Most key events which attract a large number of foreign visitors, such as the Formula 1 Grand Prix in Abu Dhabi, Global Village, the Dubai World Cup and the Dubai Shopping Festival take place during the winter. The most favored activity for inbound travelers in the UAE is shopping. Dubai is the largest luxury shopping destination in the Middle East with over 400 luxury brands and stores. Inbound tourist expenditure rose from AED26. 3 billion (US$7. 1 billion) in 2008 to AED34. 0 billion (US$9. 2 billion) in 2012, at a CAGR of 6. 66% during the review period. The retail sector held the largest share of inbound expenditure at 28% in 2012, followed by accommodation with 25% and transportation with 22%. – Owing to the high cost of medical treatment in the country, UAE citizens travel overseas to places like Thailand and India for affordable healthcare. Most locals travel abroad during the summer months, which extend from June to September, to escape the searing heat. – Cheap petrol, a small geographical area and a lack of rail networks have made cars a dominant mode of transport in the UAE, as a result of which the domestic airlines market remains weak. Cars are preferred as traveling between emirates by air requires a two-hour airport wait, which makes the journey time equivalent to driving by car. – After years of luxury tourism, the UAE is currently recording an increase in budget travel, which has necessitated car rental companies to add more cost-effective cars to their fleets. Car rental companies in the UAE have broad product ranges, comprising both luxury and budget cars. In keeping with its image as a premium tourist destination, hotel room supply in the UAE is geared towards luxury accommodation. Serviced apartments form a major part of the room supply in the UAE owing to the rising number of expatriates and business travelers. – While travel agents are the most preferred means of booking tours, they are still not viewed as a credible source of advice in comparison to personal recommendations from friends The UAE Outbound Tourism to 2017: Market Profile Timetric, April 2013, Pages: 26 * ————————————————- Description * ————————————————- Table of Contents * Enquire before Buying * Send to a Friend Synopsis
This report provides an extensive analysis of outbound tourism in the UAE: – It details historical values for outbound tourism in the UAE for 2007–2011, along with forecast figures for 2012–2016 – It covers key trends and barriers in the travel and tourism industry in the UAE – It provides market data on tourism demand factors and tourism market indicators for the travel and tourism industry in the UAE – It provides data for review and forecast data on outbound tourism flows (by region) and outbound tourism expenditure on accommodation, entertainment, foodservice etc. in the UAE Summary “The UAE Outbound Tourism to 2017: Market Profile” is the result of extensive research on the travel and tourism industry covering outbound tourism in the UAE. It provides detailed analysis on key trends and issues and outbound tourism flows along with forecast for outbound tourism in the UAE. The report also includes an overview of the UAE travel and tourism industry covering key trends, barriers to tourism and tourist attractions with a detailed SWOT analysis of the tourism industry in the UAE. Review and forecast data for tourism demand factors and market indicators has also been included in the report. Scope
The report provides in-depth market analysis, information and insights, including: – A detailed coverage of the travel and tourism industry in the UAE – A comprehensive analysis of outbound tourism in the UAE Reasons To Buy – Understand the demand-side dynamics within the UAE travel and tourism industry, along with key market trends – Take strategic business decisions using historic and forecast market data on outbound tourism in the UAE United Arab Emirates Tourism Report Q1 2013 Business Monitor International, January 2013, Pages: 78 * ————————————————- Description * ————————————————- Table of Contents * ————————————————- Companies Mentioned * Enquire before Buying * Send to a Friend
The UAE Tourism report considers the recent performance of the tourism sector and assesses its longterm prospects. For the UAE as a whole, the tourism sector had another good year in 2011, with foreign tourists arrivals growing by 10. 5% year-on-year (y-o-y). The already burgeoning tourism sector appears to have benefited from the Arab Spring, as tourists favour the UAE over less stable locations in the region. Given ongoing instability, there is potential for the industry to benefit further from this trend. BMI anticipates a slight slowdown in the tourism sector in 2012, partly driven by extremely weak economic conditions in the eurozone (Europe is a major source region for arrivals).
Indeed, growth in visitors from Europe to Dubai has been weak in recent years. Yet there are still favourable opportunities for the UAE in regional tourism growth, such as from Saudi Arabia. The tourism industry has also become a notable bright spot for the construction sector. In Abu Dhabi, the most recent data for the first nine months of 2012 show the emirate welcomed 1. 74mn hotel guests, representing a robust 15% increase y-o-y (including UAE arrivals) compared with the corresponding period in 2011. Abu Dhabi now looks well placed to achieve its target for the year of 2. 3mn guests arrivals. The number of domestic tourists – the largest group f arrivals – increased by 11 %y-o-y. Source markets which recorded the strongest growth in January-September 2012 were India (up by 31% y-o-y), Germany (+46%), Saudi Arabia (+17%), China (+78%) and Russia (+44%). In the hospitality sector in Abu Dhabi, latest figures for the period January-September 2012 show total guest nights were up by a solid 10% y-o-y. This was particularly favourable given a sizeable increase in available hotel and resort capacity in 2012. Food and beverages have generated significant revenue, accounting for US$339mn over the nine-month period, an 11% increase y-o-y. Over the last quarter, BMI has revised the following forecasts and views: BMI has edged up its annual growth forecast for foreign tourist arrivals to the UAE in 2012 and 2013 to 8. 5% and 10% respectively. – BMI’s revised projections for real GDP growth in the Middle East and North Africa (MENA) are 5. 2% (down from 5. 7%) and 3. 9% (from 4. 1% previously) in 2012 and 2013 respectively, after an estimated 3. 2% in 2011. – We expect a recovery in the eurozone in 2013 to compensate for a forecast slowdown in economic growth in MENA. – Abu Dhabi has recorded impressive growth in foreign tourism from burgeoning target markets such as China and Russia. United Arab Emirates Tourism Report Q1 2012 Business Monitor International, February 2012, Pages: 61 * ————————————————- Description ————————————————- Table of Contents * ————————————————- Companies Mentioned * Enquire before Buying * Send to a Friend Business Monitor International’s United Arab Emirates Tourism Report provides industry professionals and strategists, corporate analysts, tourism associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on United Arab Emirates’s tourism industry. Tourism Overview The tourism sector in the UAE looks set to record another good year in 2011, after a strong recovery in the previous year. In the period January-September 2011, Dubai hotels played host to 6. 4mn guests (including UAE residents), an increase of 11% compared with the first three quarters of 2010. This is a slight moderation in growth though since Q111, when the number of guests rose a solid 14% year-on-year (y-o-y). In Abu Dhabi, during the first eight months of 2011 data show a good 13% y-o-y increase in tourists (including UAE arrivals) at hotels and hotel apartments (despite a fall in arrivals y-o-y in August), to over 1. 3mn guests. Arrivals from Europe were up a marked 19% y-o-y, buoyed by a 24% increase in visitors from France, and growth of 18% and 17% in arrivals from the UK and Germany respectively. There was also a surge in arrivals from the Gulf Cooperation Council (GCC), up by 25% y-o-y, and Asia (+23%).
Of the GCC countries, substantial growth was recorded in visitors from Saudi Arabia (+56%) and Kuwait (+32%). In Sharjah, latest figures for the first nine months of 2011 show tourist arrivals (including UAE nationals) at hotels and hotel apartments reached over 1. 1mn. Based on BMI estimates, this equates to a modest increase of just under 2% y-o-y. Hospitality In 2011, there was impressive growth in the hospitality sector. Between January and September there was a 26% y-o-y increase in the number of guest nights at Dubai hotels, to about 23. 7mn. The average length of stay rose noticeably, by 14% y-o-y, while occupancy levels of hotels and hotel apartments also increased favourably, to 72% and 74% respectively.
Hotel and hotel apartment revenue rose a solid 19% y-o-y, to nearly AED11bn. In January-August 2011, in Abu Dhabi, total guest nights increased 25% y-oy, to over 4mn nights. Occupancy levels were up by 9% y-o-y to 67%, while the average length of stay rose by 12% to around three nights. Growth in domestic tourism was more muted, with a 6% y-o-y increase in the number of guests. Hotel and hotel apartment revenue in the eight-month period was up 5% y-o-y to AED2. 7bn, while average room rates dropped, improving competitiveness. In Sharjah, the total number of hotel and hotel apartment room nights sold during the first three quarters of 2011 was over 1. mn nights, an increase of nearly 16% y-o-y (presumably due to longer staying guests). The overall occupancy rate of hotels and hotel apartments was 75% (compared with 73% in 2010 as a whole). Forecast Scenario BMI has edged down its 2011 forecast and now expect annual growth in foreign tourist arrivals to the UAE to be just under 10%. A somewhat sharper slowdown is anticipated in 2012 but growth should remain relatively favourable. The outlook is based on solid economic growth in the Middle East but a weak growth scenario for the eurozone (the two major source regions). BMI has revised down its eurozone growth forecasts, this quarter, to 1. 6% from 1. 7% for 2011; to -0. 2% from 1. 2% in 2012; and to 1. 4% from 1. 9% in 2013.
BMI’s economic growth forecasts for the UK – the top source market for inbound tourists to Dubai in 2009 and 2010 – have also been revised down, to 1. 1% in both 2011 and 2012, and 1. 7% in 2013. Airlines In September, Dubai-based Emirates unveiled major new expansion plans for the US, with the launch of daily services from Dubai to Seattle and Dallas. In November, Emirates placed the single largest aircraft order in dollar value in Boeing’s history for an additional 50 777-300ER aircraft, worth approximately US$18bn (AED66bn) at list prices. In an important strategic move, at the end of 2011, the flag carrier of Abu Dhabi, Etihad Airways, increased its stake in airberlin, Europe’s sixth largest airline, to 29. 21%, becoming airberlin’s largest single shareholder. Both airlines now connect
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