Economics of UAE Essay Example | Topics and Well Written Essays - 2500 words - 1

Economics of UAE - Essay Example In the middle of 1980s, formation of major organizations began that came to force the growth of the Dubai tourism group. During 1985, the state developed Emirates Airlines, using Dubai airport like its major center. During 1989, the Dubai Tourism Board remained established thus focusing on worldwide advertisings and posing Dubai like not only a business center but also an alternative objective. It was during 1997 when it changed to the Department of Tourism and Commerce Marketing (DTCM) (Baumgarten, 2010:98). The DTCM being the owner of the tourism industry, together with the aid of several major institutions and organizations of the group, conducted the initial yearly Dubai shopping celebration in 1996. During 1997, Jumeirah Group remained developed like a hotel organization industry. The industry currently has a portfolio of the great end hotels in the whole globe. These organizations fastened their development of the group, and by 2000, 3.4 million tourists’ remains visitin g Dubai every calendar. Towards the start of the millennium, Dubai’s tourism group started developing at an almost quicker speed. Not at all witnessed previously ideal estate schemes introduced Dubai international awareness. The Burj-Al-Arab, that started operation during 1999 was the initial 7 star hotel in the globe. The Palm Island schemes, commenced in 2002, remained the initial of that type. Foreign currency remained received in Dubai as rich tourists visited to live at its classic hotels, or to buy a few of its worthy waterfront assets. Between 2006 and 2010, the figure of hotel beds increased at a yearly proportion of near to 10%. Improving distribution caused hotel renting to shift from 82.2% in 2007 to 66.8% in 2009. The size of Dubai’s Global Airport remained expanded during this time. Analysis Size, ownership and employees The tourism industry owned by the DTCM is expected to develop with almost a 15% of the nation’s GDP in the next ten years and have a value of Dh 277.8 billion (US$75.62bn) yearly. However, the 2007-2009 financial disaster remained specifically a shock on Dubai’s tourism group, as its concern on great destination expatriate tourists left it at risk when international demand declined. Accommodation in hotels reduced to 19% from 2007-2009 and income for each accessible cube reduced from $235 in 2007 for a night to $163 for a night in 2009. During 2010, nevertheless, the group started reestablishing; renting increased by 3%, and income for each accessible cube went up by $35 for a night. Ideal GDP increase for travel and tourism economy was -17.8% in 2010. Despite the previous changes, the now scheme path will witness Dubai developing its hotel cube size by higher than any other town in the globe (Scott, 2010:76). The tourism industry in Dubai has shown increased growth in the number of people employed each year with the figure rising from 166,000 people to 173,000 people, and its expected to grow up to 236 ,000 people in a year in the coming ten tears. Currently 98 million people have employed in the industry. Structure of the industry The tourism industry in UAE constitutes a very competitive market structure with very many airlines in the nation. The competition leads to creativity and innovation in a bid to compete in the market for long. During 2010, Dubai’s hotels had the greatest income for each accessible cube in the globe costing $198 and Dubai attained position 10th in the globe considering the renting rate of 78.6%. During 2008, Dubai remained recognized like