Tourism as Economic Diversification – Options for British Investment 

Clear Vision – 2030 Plan

The 2030 policy plan of the Government of the Emirate of Abu Dhabi, which is the largest of the seven emirates which make up the United Arab Emirates and home to the country’s capital city, is a landmark document in broader government circles. It  establishes a clear, co-ordinated and comprehensive statement of the Government’s desires for the social, cultural and economic development of Abu Dhabi to the year 2030.

The longer term intent for Abu Dhabi is the creation of a secure society and a dynamic open economy.

This intent is supported by nine key pillars including a large empowered private sector, knowledge based economy, transparent regulatory environment, strong diverse international relationships, resource optimisation, premium education/healthcare and infrastructure, international and domestic security, maintenance of values/culture and heritage and an ongoing contribution to the UAE Federation of which Abu Dhabi was a founding member.   

The policy plan clearly identifies tourism as one of Abu Dhabi’s prime development focuses and an economic diversification engine.

In 2004 Abu Dhabi Tourism Authority was established to spearhead the realisation of the emirate’s tourism potential primarily through creating, in alliance with industry, a world-class sustainable destination of distinction. To further accelerate the realisation of this vision the authority a year later set up its wholly-owned Tourism Development & Investment Company (TDIC) with an infrastructure development mandate. 

Tourism is recognised as a ‘fit’ for Abu Dhabi because of its capacity to deliver multiple benefits and strengthen the policy vision’s nine pillars. The direct economic outcomes are the more obvious, foreign exchange, direct and indirect economic development and job creation, while other dimensions include social development, promoting exchange, fostering tolerance and understanding through engagement, aiding in the preservation and celebration of local and cultural traditions and enhancing Abu Dhabi’s appeal as a place to live, work and play for local residents and expatriates.

Progress to Date – Achievements in 2008 with year-to-date 2007 comparison

♦        1.5 million guests ( +4%) 
♦         4.7 million guest nights (+10%) 
♦         US $4.3 billion revenue (+50%) 
♦         84% occupancy 
♦         Average length of stay 3 nights

We have achieved strong year-on-year double-digit annual growth since ADTA’s creation.

Strong performance has been fuelled by significant inbound capacity growth and the ongoing emergence of Abu Dhabi as a global aviation hub. In 2009, some 69 destinations were directly linked with Abu Dhabi.

Abu Dhabi attracts visitors from a wide portfolio of markets with the UK being our most significant non Arab market reflecting the strong historic relationship between the two. Abu Dhabi’s long term marketing commitment to the UK is represented by ADTA’s dedicated London office.

 ADTA’s 2010 objectives are to realise:  

·        1.65 million hotel guests

·        21,600 hotel rooms

·        4.7 billion AED expenditure

·        Expand international presence

·        Global marketing campaign roll-out

·        Expanded events portfolio (World Green Tourism Congress/larger gourmet festival and new international triathalon event)

·        Leveraging of new infrastructure including the Qasr Al Sarab desert resort and Manarat Al Saadiyat exhibition centre on Saadiyat Island

·        Consolidation and expansion of MICE sector

·        Growth of  leisure tourism

·        Aggressive tactical marketing programme

 Cultural Tourism 

·     Signature projects, such as the Guggenheim Abu Dhabi and Louvre Abu Dhabi planned for Saadiyat Island are well documented and remain the activity focus

·     Expansion of cultural events calendar

·     Cultural and historic legacy will continue to be conserved, interpreted and presented to residents and visitors

  
Cultural developments play a crucial role in the 2030 plan. Tourism is an obvious beneficiary with social, economic and environmental objectives weighing of equal importance. As an example, while the attraction of regional and international visitors is of great importance, our cultural legacy and the new institutions being created will also help local residents to connect with and celebrate their past, as well as being enriched by exposure to ancient and modern treasures from the eastern and western worlds. Cultural developments are underpinning our distinctive competence as a destination and are already recognised as being a destination differentiator.

Island developments

Announcement of the Government’s intent to invest in globally significant island projects, such as the Saadiyat and Yas islands, signalled commitment to a future in which tourism would have a major role, created excitement, a sense of self belief and investor confidence. More recently they have become an integral part of the Abu Dhabi story and frankly a great way to communicate Abu Dhabi’s long-term plan. They have generated international awareness of Abu Dhabi as a destination culminating in the emirate being named, late in 2009, as one of the top 10 places to visit in 2010 by the influential Lonely Planet travel guide. 

More recently, in the case of Yas Island, home to the Yas Marina Circuit which hosts the Formula 1™ Etihad Airways Abu Dhabi Grand Prix, they have clearly demonstrated the planning, logistical and delivery capacity of the emirate. This is now perceived as a place where things can and do happen in record time but with a quality and commitment that set new benchmarks. Scenes of the sun setting over Yas Island were broadcast around the world during the inaugural Grand Prix in November 2009 creating mesmerising images of a new destination that captivated millions of potential travellers. 

As the largest sporting event yet held in the emirate, the Grand Prix also delivered economic results and the role played by national volunteers was evidence of the diversification model in action. Steadfast deadlines clarified the mind and saw the delivery of seven new hotels a nearly 20% increase in supply at one time.

The hospitality industry’s role in helping to realise the Abu Dhabi plan:

The hotel sector is a critical part of our tourism industry and visitor experience. Much more than a place to lay a weary head, hotels help sell the destination by attending trade exhibitions, supporting inbound trade and media familiarization trips, become the centerpiece of events, such as the annual Gourmet Abu Dhabi culinary festival, building the MICE sector and are the key to opening up destinations to a wider market, the new Qasr Al Sarab (Mirage Palace) retreat in the Liwa Desert is a case in point.

Increasingly the hotel sector will also become active participants in the tactical marketing and growth of the emirate’s leisure tourism.

Will the economic downturn side track development of Abu Dhabi’s tourism infrastructure?

The development of the showpiece Yas Island was a clear signal that the economic downturn will not side track development plans. Other iconic projects, including the museums on Saadiyat Island, are proceeding as planned. This approach of ‘staying the course’, is not based on blind optimism. Plans have been revisited, some schedules and targets have been adjusted based on sound review of economic fundamentals. This process will continue to be followed. 

The future:

The next five years will be an incredibly exciting period as Abu Dhabi consolidates and cements its position as a world destination of distinction.

We have already made rapid progress emerging from relative obscurity in record time. Over the next five years we will consolidate our developing positioning as a sustainable global cultural and business tourism destination with a distinctive modern Arabian style supported by solid preservation of the emirate’s traditions and heritage. The emergence of major cultural institutions on Saadiyat Island will take Abu Dhabi to the next level as a visitor destination. 

British Involvement in Abu Dhabi

Today British businesses and professionals from a wide range of sectors are making a valuable contribution to the realisation of Abu Dhabi’s Plan 2030. They are deployed in numerous sectors including: auditing, hospitality, banking, legal services, government services, management consultancy services, defence, education, media, energy, healthcare, engineering, real estate, technology, transportation and travel and tourism.

On the ground examples of  British engagement in the Abu Dhabi story abound from the large community of professionals contributing to all facets of the emirate’s economic, social, legal and environmental development to high profile projects, epitomised by  Lord Norman Foster’s commissioning to design the planned Zayed National Museum on Saadiyat Island.

The story is ongoing with investment running into billions of pounds, still in the pipeline.