UAE tourism sector grows ten-fold within four decades

The tourism sector in the UAE has grown ten-fold over the past four decades, owing to major investments and extensive drive to diversify the oil-based economy of the UAE, an expert said.

A former Economic Adviser – Mohammed Al Asumi, mentioned that diversification of income sources is the strategic issue for UAE.

UAE is one among the world’s top ten major oil powers, and has used its immense hydrocarbon revenue to build advanced infrastructure for development of other sectors, and this helps to diversify sources of income, said an article public in the ESCCR.

Al Asumi continued that UAE has grown to be a top class tourist destination, drawing millions of tourists from across the world each year. The success of tourism sector in the UAE is evident from its contribution to the GDP, which has now grown from just one percent forty years ago, to 10.4 percent at present.

Asumi hopes that this contribution by tourism sector to GDP will grow further in the coming decades, given, the advanced infrastructure that permits development of this sector at all levels. He pointed out that UAE has an unparalleled network of hotels in the region. They draw in major players from areas of sport and culture, bringing in global events into the country.

He further said that world class amenities are also available for family and entertainment tourism, particularly at the shopping malls, heritage sites and beaches, which add diversity to tourism, attracting visitors from across the globe.

Take for instance, the DSF (Dubai Shopping Festival), wherein 50million tourists visited the venue, spending more than Dh.88bn, since its inception 14 years back.

Last year, the number of tourists visiting Dubai touched 1.1mn, while the figures crossed two million in UAE. The UAE’s airlines too, promote tourism, including the Emirates, Air Arabia and Etihad Airways. There has been increased tourist numbers recorded in the rejuvenated airports in the UAE. The tourist arrival rates have grown 10 to 12 percent annually, while the number touched 50million, according to preliminary estimates.

Finally, the government too, has launched several mega tourist projects that have helped improve the role of this sector in the national economy. Projects such as the Yas Marina Formula One Circuit, Saadiyat Island, the French Louvre Museum, have all helped in reflect the country’s interest in development of this sector, he said.

Asumi said that if the tourism sector continues to grow at this rate, it will grow to 12.1percent of GDP within next decade. This is a huge proportion, matching vital sectors such as processing industries and financial services, and will help UAE grow to be one of the three largest tourist destinations in the Middle East.

Posted on 13/1/2012

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