DRMumbai: Bustling Dubai wants to achieve 20 million tourist arrivals by 2020 and has embarked on a strategic approach announced in 2013 to create a sustainable tourism number. On his recent visit to India, Dubai Corporation for Tourism and Commerce Marketing (DCTCM) CEO Issam Kazim took time off to interact with Destination Reporter.
Dubai Tourism CEO Issam Kazim, says emerging markets with large target audiences like India and China are a priority apart from Nordic countries, Japan and Korea.
Millions of dollars’ worth of investments is being poured into creating new attractions like theme parks, growing hotel inventory across price points and promoting Dubai in top 20 source markets worldwide. Tourism is the number one export for Dubai.
In February this year at the World Government Summit, Sheikh Mohammed bin Rashid Al Maktoum, Dubai Ruler, Prime Minister & Vice President of the UAE, had launched the 10X initiative to foster innovative ideas in the public sector that will propel Dubai as a futuristic city 10 years ahead of its peers. A group of young ministers have been deputed to lead the program.
“Our investments into tourism infrastructure and destination marketing are all aligned to this grand vision,” affirms Kazim.
Oil prices have been at an all-time high leading to geo-political and socio-economic factors playing spoilsport more in traditional source markets. Hence Dubai is looking at emerging markets with large target audiences like India and China.
“We have a customized approach to communications in each market and do not believe in a cookie-cutter approach,” says Kazim. “We target FITs, families, groups, newly-weds, honeymooners, young couples with children, senior citizens, millennials, niche travel segments like cruise and sports, and MICE with specific tailor-made campaigns. Our product mix is so varied that it is easy to create experiences and packages that appeal to each market segment.”
In Asia, Dubai sees tremendous potential for growth, especially in India and China. China clocked 147 million outbound travellers in 2017. It is estimated that Chinese outbound travel will grow to 175 million by 2020. Dubai is conducting multiple roadshows in China to increase its share which grew 9 per cent in H1 2018 touching 4,53,000 visitors.
Russia, which has always been a strong market for Dubai, is the fastest growing – 74 per cent in H1 2018 at 4,05,000 visitors. The Emirate is also looking at the Nordic countries, Japan and Korea to achieve its numbers.
Many GCC destinations are aggressively marketing in India. For the past three years India has remained the number one source market for Dubai contributing 13 per cent of overall numbers. It is also the first source market to cross the 2 million visitor mark. “Continuous strengthening of our trade relations and growth of aviation industry, both in India and UAE, have helped,” concurs Kazim.
Dubai has simplified visa regulations step by step, first for cruise passengers with multiple entry visa; visa on arrival for Indians with valid US visa or green card; and free transit visa for 48 hours. “These are steps in the right direction,” feels Kazim. “We are trying to ultimately secure visa on arrival on both sides.”
Though there is excellent air connectivity between Indian cities and Dubai, the flights are running full. If Dubai has to grow its numbers from India, airline capacities have to be enhanced further. “Dubai has an Open Sky policy but India does not,” he complains. “We are working on the bilaterals to increase flight capacities.”
Dubai welcomed 1.2 million tourists from India in H1 2018 which is a mere 3 per cent growth from last year. “If you look at the number of Indians transiting through Dubai, it shows we have so much untapped potential there,” agrees Kazim. “The transit visa is free now for the first 48 hours and can be easily extended for another 96 hours at a nominal fee of AED 50. If we can send out the right information to our trade partners in India, transit passengers, especially first-timers can be easily tempted to break their journey and explore Dubai. Once they experience Dubai, they are most certain to return as repeat visitors with family and friends.”
In order to address the perception that Dubai is an expensive destination, the Emirate has focused on growing its hotel inventory, especially in the 3 and 4-star category as well as holiday homes and serviced apartments. Dubai Municipality has waived off the 10 per cent municipality fee for the first five years for 3 and 4-star hotel investments. “We have grown from 60,000 to a 1,00,000 hotel rooms already and many more hotel projects are in the pipeline. This will make Dubai much more accessible and feasible for travellers irrespective of budget. In spite of hotel rooms being added substantially, the occupancy is still averaging between 70 and 80 per cent which is quite healthy.
“We have added four Rove hotels (Emaar Group’s affordable hospitality brand) and the plan is to have 10 of them by 2020,” informs Kazim. “All these new projects are coming up on the cultural side of the city. Jumeirah’s Zabeel House is also following a similar strategy,” he concludes.
