MCI Entrepreneurship & Tourism Study Trip Asia

1. Dubai – a star in the
east?
Critical discussion of the development of Dubai and its
tourism

2. Dubai

3. Dubai has a lot on offer...

4. Everything seems to be
possible in Dubai

5. Some of Dubai‘s superlatives...
Balakrishan, M.S. (2008): Dubai – a star in the east, p. 80.

6. Dubai‘s development
 Development?
 Definition: The process of economic and social
transformation that is based on complex cultural
and environmental factors and their
interactions.(www.businessdictionary.com)
 „Dubai has identified
tourism, transport, trade, construction and financial
services to the key drivers of its economy in its 2015
Strategic Plan“ (Balakrishan, M.S. (2008): Dubai – a star in the
east, p. 70.)

7. Rapid economic and social
transformation...
Balakrishan, M.S. (2008): Dubai – a star in the east, p. 70

8. Tourism in Dubai
 Tourist numbers have more than doubled since 1999
(Balakrishan, p. 79)
 Growing hotel industry
 Occupancy rates have increased from 66,8% in 1999 to 82% in 2007
(Balakrishan, p. 79)
 Strategic location connecting the Asian and European worlds
 Offering a „kaleidoscope of attractions“ (Definitelydubai.com, 2012)
 Five of the largest malls in the world
 Offering tourism experiences for everybody through the constant
planning of new sights and monuments (Mohammed Abdullah
Janahi, 2012)

9. Development of Dubai
 Some things to think about...

10. 1. Dubai‘s economy
 Dubai‘s landmark Burj Khalifa was initially supposed to be called
Burj Dubai, but Abu Dhabi provided about $25-billion in bailout
funds for Dubai in the past year, because of its crushing debt
load -> renamed as it was actually financed by the government of
Abu Dhabi (http://www.theglobeandmail.com/report-on-
business/dubais-burj-khalifa-built-out-of-opulence-named-for-its-
saviour/article1208413/)
 In 2009, almost half of Dubai‘s GDP was due to the construction
and real estate sectors -> sectors which crashed during the crisis
in 2008. Prices sank dramatically, and lots of companies were
struggling to pay their debts
(http://www.tagesschau.de/wirtschaft/dubai208.html)
 Lots of unfinished construction areas in Dubai

11. Dubai‘s economy

12. 2. Tourism would not be possible without
expatriates working in the service sector
 82% of Dubai‘s population are expatriates (Balakrishan, p. 73)
 Taxi drivers, waiters, chefs, Souk...
 Although the economy depends on their labour, only in the last
decade they were allowed to own properties and get residency visas
 „A majority of the cheap labor is male and live without their families“
(Balakrishan, p. 68)
 In contrast, high unemployment rate among Emiratis (Balakrishan, p.
68)
 2015 Vision: GDP per capita of US $44,000 but expatriates earn
less than US $ 700 per month (Balakrishan, p. 70)
 -> Tourism would not be possible without expatriates although it is
one of the major drivers of Dubai‘s economy

13. 3. Environmental issues...

14. Sustainable?

15. Claiming to promote
sustainable tourism but...
 Dubai has the third highest water consumption of the
world (Balakrishan, p. 76)
 Proud to offer skiing in the desert
 Public transportation
 „The Palm“ and „The World“
 Plans to focus on „nuclear power“ (Mohammed
Abdullah Janahi, 2012)
-> different understanding of what we would call
sustainable tourism

16. 4. Dubai‘s Positioning

17. Dubai‘s Positioning
 Dubai sees itself as a destination offering everything to
everybody (e.g. families)
 The positioning consists mainly in offering overwhelming
experiences („the tallest among the tall“)
 Constantly need to outperform themselves and to exceed the
imaginable
 Very proud of their records, but easy to copy: „“short-lived
differentiators“ -> better to build on the promise of something
more concrete
 „A home of luxury brands: „Live the luxury“ <-> but the majority of
Dubai‘s population earns less than US$700 per month

18. 5. Branding

19. Branding
 „Destinations are products with a heavy dependency on services
which act as a destination differentiator, increasing brand value“
 „Branding must often start with the people of that destination“
 „Pride is considered one of the greatest motivational factors“
 „Positive associations with the destination experience and its
people will (...) increase the brand image of the destination“
(Balakrishan, p. 66)
 „Dubai has identified its key stakeholders well“ (Balakrishan, p.
77)?
 „An additional refocus on ALL residents will create a greater
feeling of pride, loaylty and unity“ (Balakrishan, p. 77)

20. The brand „Dubai“
 Slogan „Definitely Dubai“ -> no brand recognition
 No emotional experience linked to the brand
 „Dubai has yet to decide what will be the key image
differentiator“ (Balakrishan, p. 81) -> Camels can be
found in many countries
 Need to build stronger associations attached to Dubai

21. 6. Dubai is still a transit
destination
http://www.hdwallpapers.in/walls/emirates_dubai_burj_al_arab-normal.jpg, 2012, online

22. Dubai is still a transit
destination
 According to Balakrishan (2008), no significant
increase in average guest nights since 1999.
 2012: the average length of stay increased up to 3.6
days, up by 12 per cent compared with the previous
year
(ttp://www.khaleejtimes.com/DisplayArticle09.asp?xfile=data/theuae/201
2/March/theuae_March206.xml&section=theuae, 2012, online)
 Not a long-stop location -> more a transit destination
for stopovers
 A fact Dubai has to work on

23. 7. Information
 „A key constraint of this study is the availability of sufficient
information which is still limited in the UAE“ (Balakrishan, p.
83)
 The Palm and its habitants? Celebrities? A successful
project?
 Occupancy rates of hotels?
 Dubai Media Incorporated (http://www.dmi.gov.ae/default_en.asp)
 Cultural issue?
 -> Impact on credibility

24. Conclusion
 Dubai has developped remarkably during the last
decade and has...
 the ability to offer unique experiences to tourists
 But all that glitters is not gold:
 Sustainability
 Expatriates vs. Emiratis
 Has to work on its brand image and
 Its credibility