Number of Dubai tourists seen surging to 15m by 2010

DUBAI — Tourism is an important component of Dubai economic diversification drive towards non-oil economic growth. The number of tourists visiting Dubai is projected to reach15 million by the year 2010, according to a report by Dubai Chamber of Commerce and Industry (DCCI).

By A Staff Reporter

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Published: Wed 6 Jul 2005, 10:17 AM

Last updated: Thu 2 Apr 2015, 4:36 PM

In 2003, the hotels and restaurants sector contributed about 5 per cent of Dubai non-oil gross domestic product (GDP). Partly, tourism is driving the growth of Dubai construction sector. Dubai standard classification of economic activities does not explicitly mention tourism as a separate economic activity, but the hotels and restaurants sector can be used as a proxy for tourism. This is because tourism needs good infrastructures such as roads, airports, hotels, apartments and man-made attractions.

According to statistics provided by DCCI, it is estimated that 73 per cent of employment in Dubai hotels and restaurants sector is generated by large sized businesses, those with 100 and more employees 23 per cent by medium sized businesses, those with 10 to 99 employees and 4 per cent by small sized businesses, those with less than 10 employees.

Regarding turnover, it is estimated that 66 per cent of the turnover of Dubai hotels and restaurants sector is generated by large sized businesses, 23 per cent by medium sized businesses and 11per cent by small sized businesses.

The revenues of all classes of hotels have been growing, except the listed hotels. The calculations have shown that the total revenue of Dubai hotels has been growing by an annual average rate of 21per cent, during the period 2000-2004. The fastest growing revenue is that of the one star hotels, with a rate of 31per cent. This is followed by that of the four and five star hotels, with rates of 26 per cent and 23 per cent respectively. The revenues of the two and three star hotels grew by 14 per cent and 10 per cent respectively. While the revenue of the listed hotels declined by an annual average rate of 12 per cent.

According to statistics, the total revenue of Dubai hotel apartments has been growing by an annual average rate of 14 per cent, during the period 2000-2004. The revenues of deluxe and standard hotel apartments have been growing by annual average rates of 20 per cent and 13 per cent respectively while that of the listed hotel apartments have been declining by an annual average rate of 1per cent.

The rising revenues of the star hotels and deluxe hotel apartments suggest that the tourists who visit Dubai are mostly from middle to upper income classes. These classes of tourists appreciate additional services such as adequate transport means, tourist information points, and tourist attractions.

Dubai as a luxurious tourist destination needs to upgrade its listed hotels and hotel apartments to star and deluxe ones with the view of adding more value.



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