ArabianMoney.Net

First with Financial Comment from Arabia

Archive for the ‘Travel’ Category

Tourism will lead the economic recovery in Dubai

leave a comment »

Yesterday three large cruise liners were docked at the new Port Rashid terminal that opened in January this year. Perhaps around 5,000 day trippers got off these ships to explore Dubai.

At the same time hotel occupancy in the city is sharply up on the depression of a year ago. Beachfront hotels are running close to capacity again. Only the room rates are down by an average of 14 per cent on a year ago.

Cheaper meal deals

Restaurant promotions have also brought back the local diners who had become disgusted with the high food and beverage prices of the boom years. Many local credit cards bring substantial discounts in restaurants now.

No doubt trade has also picked up in the Dubai ports and free zones this year. But the turnaround is probably not as dramatic as in the tourism sector. This time last year the Atlantis Hotel on The Palm, Jumeirah was practically empty except for security guards, now the hotel is heaving with tourists.

The opening of the Burj Khalifa, the world’s tallest building, in January has certainly helped. This brought a wave of positive publicity after the negative press of the Dubai debt crisis in December.

But there is an old saying that no publicity is bad publicity, and Dubai is certainly well known these days. Indeed, it appears that as hotel rates have fallen people who could not afford Dubai before have decided to come and see what all the fuss is about.

Impressing visitors

Yesterday ArabianMoney met a couple of visitors from The Arcadia docked in Port Rashid and showed them around. They seemed dazzled and amazed by the infrastructure now available in Dubai. It is not just the best in the region but world-class.

People who live and work in Dubai probably become rather immune to the city’s charms and tend to focus on their daily problems. It is sometimes good to be reminded by visitors about the quality of what has been built here.

Perhaps after all the investment in tourism over the past decade, and the fabulous new airport facilities and Emirates Airline should also be included, it should not be surprising if tourism is the sector that leads the economic recovery in Dubai.

Advertisements

Written by Peter Cooper

March 30, 2010 at 8:02 am

Posted in Culture, Hotels, Travel

Emirates and Eithad debut in Tokyo and BA goes on strike again

leave a comment »

When the history of aviation is written in future years time this week will be remembered as the one in which Emirates Airline and Etihad opened their first-ever flights to Tokyo while British Airway cabin staff went on strike for a second time.

Cabin crew from Lufthansa and Alitalia are also planning strike action as the legacy carriers from Europe embark on what any business observer would have to acknowledge as suicide during the worst global economic downturn since the 1930s.

Tokyo debut

Abu Dhabi’s airline Etihad will operate five non-stop flights to Tokyo a week. The maiden Etihad flight arrived a day ahead of Dubai’s Emirates first flight into Tokyo’s Narita airport that will also offer five flights per week.

Direct flights from the two major cities of the UAE to Japan means the start of a whole new hub service for the Japanese capital routed through the UAE. There is also the associated prestige and publicity attendant on direct flight services.

Trade and trading relationships between the UAE and the world’s second largest economy are strong with $29 billion in trade annually. There are some 350 Japanese companies and 3,500 Japanese expatriates living in the UAE which is a hub for multinational distribution in the region.

Both airlines are also hoping to attract more high-spending Japanese tourists to visit Dubai and Abu Dhabi that have an impressive inventory of new luxury hotels and shopping malls as well as new cultural attractions.

What a contrast with the European airlines whose staff see themselves as royalty flying the world to indulge in long-stop overs with their friends also flown in at subsidized rates.

Younger staff

The future clearly lies with the Gulf carriers with more market orientated employment policies. That means giving young staff short contracts, and investing in modern aircraft rather than staff perks.

It also means getting on with expanding the airlines across the globe and not allowing customers to be upset by strike action by cabin staff who seem to have forgotten that they are only their to serve the airline and not vice-versa.

European legacy airlines have a tough enough job ahead of them competing in a globalized aviation market without their staff stabbing them in the back.

Written by Peter Cooper

March 29, 2010 at 7:56 am

Posted in Aviation, Hotels, Travel

Hotel Review: Desert Islands, Sir Bani Yas Island, Abu Dhabi

leave a comment »

Once the UAE ruler’s own private game reserve, the Sir Bani Yas Island about 200 kilometres to the south-west of Abu Dhabi has been skillfully transformed into a major tourist attraction with the opening of the Desert Islands Resort and Spa by Anantara last October.

In the 1970s Sheikh Zayed bin Sultan Al Nahyan first decided to turn this barren island off the UAE coast into a green playground for thousands of animals, including the rare Arabian oryx. He planted more than two million trees and even irrigated a mountain in the centre of the island, turning it green.

Wildlife park

After his death it was decided to open this unique ecological experiment to visitors. It is a remarkable combination, part bush land, part zoo. There are thousands of gazelles, numerous species of deer, several hundred oryx, 40 giraffes, hyenas, eight cheetahs and a whole host of smaller birds and animals.

For the best sightings guests are conveyed in safari vehicles for a 7am drive. The island is also ideally suited for activities like kayaking, snorkeling and mountain bike riding, all included in the room rate at the excellent Desert Islands Resort and Spa complex.

This brand new hotel is built to the highest five-star standards with 68 rooms and six villas. Rooms are very spacious with all the usual luxury features and fine bathrooms. They also have private terraces and access to the swimming pool at ground level.

Service is very good at this boutique hotel and staff are soon addressing you by name. The pool area is beautifully arranged for privacy and relaxation with a substantial bar and restaurant, although the beachfront is presently cut-off by huge concrete breakwaters that will be partly removed in the future.

Great food

A second restaurant flows from the hotel interior onto a large ground floor terrace, and is pleasantly shaded. This restaurant offers a wide range of international cuisine both a la carte and from a buffet. Barbecues on the terrace are a specialty and very popular.

The hotel attracts quite a lot of local visitors from Abu Dhabi, who particularly like the lavish spa with its sea views from the treatment rooms; the double room even has a jacuzzi on the terrace. For the energetic there is a huge gym and tennis courts.

If you are coming from Dubai then the drive is over three hours and it probably makes sense to stay three rather than two nights. Fortunately at the moment the hotel is offering a three nights for the price of two package with buffet dinner and two activities. You can also fly from Abu Dhabi.

Written by Peter Cooper

March 28, 2010 at 8:09 am

Posted in Hotels, Restaurants, Travel

New Dubai airport to open June 27th for cargo only

leave a comment »

The first runway of the new Al Maktoum International Airport, near to Dubai’s massive Jebel Ali Free Zone, will open on June 27th for cargo planes only and will have an initial capacity of 250,000 tonnes.

This is the first phase in the creation of what will ultimately be the world’s largest airport, and understandably in the circumstances of the Dubai real estate crash the project is now moving ahead more slowly than before the crisis.

Big ambitions

Cargo capacity will be expanded to 600,000 tonnes as a first step. But this is part of the $33 billion Dubai World Central development and the full airport will handle 160 million passengers per annum and 12 million tonnes of cargo from 18 cargo terminals.

Between 2022 and 2030 the Maktoum International is planned to become the new hub for Emirates Airline. The existing Dubai International Airport is being expanded to handle 90 million passengers. But room to expand on the site is limited. Last year the airport handled 41 million passengers.

The Jebel Ali airport site has actually been earmarked for a couple of decades. Its position next to one of the world’s largest container ports is ideal for cargo transfers.

Clearly the phasing of this greenfield, actually sandy desert, development will depend on the pace of expansion of the aviation sector in Dubai, and any constraints placed on it by the availability of credit and the growth of global travel.

Past precedent

But ArabianMoney can recall when Dubai airport handled less than 10 million passengers, and articles then scoffed at the idea of a 30 million target. Dubai has always planned into the future and used a high-return business model based on zero-cost land, low-cost labour and state-of-the-art technology.

It would be foolish to think that what has worked in the past will not deliver results in the future. Recessions and debt crises come and go. The right business in the right place at the right time will always succeed.

Of all the mega projects to emerge from the boom of the 2000s actually the Maktoum International Airport is probably the most economically viable and will be the biggest success in the long-term, just like the Jebel Ali seaport that it so conveniently serves.

Written by Peter Cooper

March 24, 2010 at 10:07 am

Six new Palm Jumeirah hotels over the next 12 months

leave a comment »

Dubai will open up to six new beachfront hotels on the Palm Jumeirah over the next 12 months, inevitably adding to room price competition and forcing down rates but securing the emirate’s position as the sunshine holiday capital of the Middle East.

The iconic Atlantis Hotel which opened 18 months ago is currently the sole hotel on The Palm Jumeirah Island. It is about to face some strong competition from new luxury hotels.

Luxury hotels

First to launch in the second quarter will be the 410-room Zabeel Saray by Rixos, a development that includes 38 residential villas. Then in October the 293-room, six restaurant Royal Amwaj from Movenpick will open with an all-in guest dining package available (pictured above).

Movenpick director of business development Guy Epsom told ArabianMoney the hotel had received a very good reception at the recent ITB hotel exhibition in Berlin with travel agents saying there was big demand for Dubai now that room prices are down.

The One&Only The Palm is also due to open in October, a 100-unit, Arabic-themed, low-rise development with an over-water restaurant and spa. Last hotel to launch this year will be the Jumeirah Al Fattan.

2011 openings

Still to come in 2011 are the 320-rooom The Emerald Palace Kempinski, opposite the Golden Mile and delayed for two years after the global financial crisis, and the massive Fairmont Palm Jumeirah with associated serviced apartments.

From a business perspective the opening of so many hotels in one location is clearly going to be a major marketing challenge. But at least the Palm Jumeirah Island is among the best known places in the Middle East and has already benefited from huge global publicity, good and bad.

Actually it is probably the European sunshine destinations that will feel the most heat from this competition. Dowdy old hotels with poor maintenance are struggling to keep pace with the super luxury offerings from Arabia, and can only compete on price which undermines their profitability.

All-in dining package

Movenpick is being clever by offering an all-inclusive dining and beverage package – Club Gulf rather than Club Med. This will go a long way to counter the impression of Arabian hotels as overcharging for food and drink. But doubtless all this new competition is going to force down bar and restaurant prices in the future.

For holiday makers there are going to be some great deals as the Dubai hospitality sector takes another leap forward, albeit not such a profitable one as in the boom years.

Written by Peter Cooper

March 24, 2010 at 8:39 am

Alcohol back on the menu in Dubai restaurants

leave a comment »

In a rapid U-turn the Dubai Municipality has reversed a ban on alcohol in food served in local restaurants and said there had been ‘a misunderstanding’. On Sunday an official had told several local media that the ban was being enforced and the story made headline reading in Dubai.

Now there has been a clarification that states only that restaurants are required to declare the presence of alcohol in food on their menus in Arabic and English, and that regulations necessitate the separate preparation of such foods in kitchens.

Lunchtime investigation

Hotels were certainly confused by the news stories. ArabianMoney ordered a red wine sauce on a steak in the Rib Room at the Emirates Towers Hotel and met with no problem. The manager said the hotel had not received any order to stop serving food made with alcohol and would not do so until it saw a written instruction.

Chefs led by Uwe Michaeel, president of the Emirates Culinary Guild and director of kitchens at the Radisson Blu Dubai Creek where he has been working for over 15 years, objected to having to prepare dishes without alcohol. This is a standard ingredient for many famous Western and Asian specialties and would have limited the range of Dubai cuisine.

As it is Dubai is a multicultural melting pot with Indians probably just in the majority. The local population is 90-95 per cent expatriate and diluted further by the presence of large numbers of tourists. Dubai vies with Egypt as the region’s biggest tourist destination.

Multicultural city

Even regional tourists choose Dubai for its relaxed and tolerant lifestyle, and the reaction to the alcohol in food ban is a reminder that the city has built its wealth and reputation on its multi-cultural approach.

The official religion of Dubai is Islam but only a minority of residents are Muslim. This helps to explain why Dubai remains such an open and tolerant, multicultural society and has become the hospitality centre of the Middle East as well as the location of choice for multinational companies and banks.

Having spent hundreds of billions on its infrastructure over the past decade Dubai is not about to risk its future prosperity for the sake of a ban on boeuf bourguignon or any similar misunderstandings.

Written by Peter Cooper

March 23, 2010 at 9:43 am

Dubai tightens up on public morality with no alcohol in food

with 3 comments

Dubai restaurants have been banned from using alcohol in cooking, even when the existence of alcohol is warned on the menu, in the latest minor tightening up of public morality in what remains a Muslim society despite the overwhelming numbers of non-Muslim expatriates and tourists.

On the same day that this story surfaced, The National also reported that no new licenses are to be issued to massage parlours until further notice after ‘dozens were found engaging in illegal activities’. In Dubai it is already illegal for women to massage men – something quite normal in Doha and Abu Dhabi which might be seen as stricter cities for public morality.

Revolting chefs

The chefs of Dubai are up in arms at the restrictions on the use of alcohol in cooking which is common for many popular European and Asian dishes. They hope the ban might be relaxed in return for better labeling.

It is hard to say whether sterner public morality is some kind of condition for financial support from more conservative neighbors, or just a normal reaction to deteriorating moral standards. It could be just a reflection of a harsher economic climate and less tolerance for others.

The notorious Cyclone Club was closed several years ago, for example, when its lewd reputation became an intolerable embarrassment. Then again the opening of a new mosque in the Meadows and Springs this month is just a normal part of city life, not the start of a shift to militant Islam.

Delicate balance

However, in a multi-cultural society the harmony of the local community requires a delicate balancing of moral standards. There is no question of imposing one religion on all citizens and the rights and beliefs of everybody have to be taken into account.

The rules on behavior in public places have been in focus recently with a non-married couple jailed for one month for kissing in a restaurant at 2am in the morning. It is always difficult to draw a line on public morality but many Westerners thought the penalty inappropriate. They wondered about the woman who reported the incident, out with her young children way past their bedtime.

That Dubai appears to be undergoing a slight reversion to conservatism might be welcomed by many appalled by some of the excesses of the economic boom. But the city has made its wealth from tolerance and diversity and nothing should be allowed to threaten this legacy. Getting chefs to change their menus is a step backwards.

Written by Peter Cooper

March 22, 2010 at 10:49 am