Abu Dhabi’s tourism industry is upbeat about prospects over the coming four months and the year ahead with the second Abu Dhabi Tourism Authority (ADTA) comparative confidence survey showing cooler weather, the 2009 Etihad Airways Formula 1 Abu Dhabi Grand Prix and the FIFA Club World Cup UAE 2009, are helping to restore confidence levels.
The ATDA survey, based on the United Nations World Tourism Organisation’s (UNWTO) methodology for its global confidence index, questioned 120 local industry stakeholders. Abu Dhabi’s tourism industry registered a confidence rating of 96 – 39 points ahead of the UNWTO’s rating for the worldwide industry for January to April this year.
Over the coming 12 months events and exhibitions were identified as opportunities with other positive influencers being economic stability, reduced room prices, increased attractions and developments, better infrastructure and services and the business travel sector.
Abu Dhabi is aiming to more than double its number of hotel guests to 2.3 million a year by 2012, down from a forecast of 2.7 million earlier this year.
“As an industry we are looking to leverage these strengths to counter challenges we may face from the global financial crisis fallout,” said Mubarak Al Muhairi, director general, ADTA.
Survey participants expect the domestic UAE market to deliver strong business for the destination over the coming 12 months with Qatar and Saudi Arabia also identified as key inbound markets. Participants also reported growing confidence in business emanating from India and China and key Western markets, most notably Germany, France and the UK.
The survey also identified challenges the industry expects may impact tourism business in the coming year. These include changing business imperatives brought on by the global financial crisis, increasing competition within Abu Dhabi’s hotel market and parking issues.
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Abu Dhabi Yas Island preparing for the Grand Prix |
The authority has formed five industry development committees (IDCs) comprising leading industry players to help drive forward Abu Dhabi’s tourism agenda in line with the government’s 2030 aspirations of attaining 7.9 million visitors staying in 80,000 hotel rooms within the next 20 years.
The forum heard that Abu Dhabi’s tourism sector performed well last year achieving some 1.5 million hotel guests, which was a four per cent increase on 2007. They generated: 4.7 million guest nights, a 10 per cent rise on the previous year; delivered Dh4.3 billion in revenue, which was up by 50 per cent on 2007; an 84 per cent occupancy rate and stayed an average of three nights. Last year capped off over five years of strong, double-digit annual growth in Abu Dhabi hotel guest arrivals amounting to a 50 per cent increase over the period.
Abu Dhabi International Airport is now directly linked with 69 destinations, served by 32 airlines, with Etihad Airways consistently expanding capacity. Passenger traffic has grown significantly over the past five years, almost doubling from five million a year to nine million.
While occupancy and guest night rates for the July 2008 – 2009 year-to-date showed a drop of nine per cent, average occupancy rates are a healthy 77 per cent – still one of the worlds highest.
The domestic market performed extremely well – up by almost a third to July 2009. “A strong local economy and residents’ desire to holiday-at-home have helped hold up the business and leisure ends of the market,” explained Lawrence Franklin, ADTA’s strategy and policy director.
“Experience shows that taking less, closer and shorter duration trips are common travel responses during recessions. A destination response to leverage these trends could include a stronger focus on local and regional markets and building value-for-money short breaks.”
Looking ahead to the next four years, the forum heard that key emerging markets, including India, China and Russia, would boast higher outbound growth rates and still have room for further development. GCC markets are also expected to outperform the global pack.
Delegates also heard that significant additional room stock is being made available in Abu Dhabi.
Approximately 10,000 rooms are under construction to be delivered in the remainder of 2009 and through 2010, with a further 7,000 under construction to come on line in 2011.
ADTA is targeting 10 per cent growth in hotel guest arrivals next year then 15 per cent each in 2011 and 2012. To realise its targets it plans to leverage the 2009 Formula 1 Etihad Airways Abu Dhabi Grand Prix and FIFA Club World Cup UAE 2009 activities, launch a global marketing campaign, increase marketing collateral, spearhead multi-component trade engagement through its international offices, ramp-up co-operative marketing programmes with partners, initiate stop-over marketing and open additional international offices.
by Shalu Chandran