The growth of the hospitality industry in the UAE was initiated a few decades ago by the government by developing several contemporary and sophisticated hotel complexes and now the country can boast of one of the finest hospitality sectors in the world.
More and more international and local chains of hotels, resorts, etc. are built every year which provide a higher standard of service. This hospitality sector plays a major role in selecting a place for holding international and regional events such as conferences, seminars, festivals etc. The hospitality sector of Abu Dhabi is considered as one of the fastest growing industry in the UAE and contributes almost 4.8% of the country’s GDP.
The Current Hospitality Scenario in Abu Dhabi
The hospitality sector continues to be bullish as the hotel revenue rose almost 73% to Dh 1.8 billion ($490 million) in Q4 of 2018 from Dh 1.08 billion during the last quarter. There was also an increase in the number of hotel rooms in Abu Dhabi and their occupancy rate according to the Department of Tourism and Culture Abu Dhabi. The length of stay also saw an increase from 2.3 nights to 2.7 nights in comparison to the last quarter.
This increase was caused due to the increase in the investment in the hotel industries and also the increase in the number of businessmen and entrepreneurs entering the market. The celebration of the new year and the celebration of the various national and international events played a big role in attracting tourists in huge numbers. The opening of the reputed art museums such as Louvre Abu Dhabi and the Guggenheim Museum and the recent opening of the Warner Bros. World in Abu Dhabi is also a reason the tourists are attracted to Abu Dhabi to spend their holiday in Abu Dhabi. Most numbers of tourists in Abu Dhabi are from the countries of India and China according to the recent study by the Department of Tourism and Culture.
Reasons for the Growth of the Hospitality Sector in the Middle East
The Middle East, specifically Dubai and Abu Dhabi are considered as GCC’s leading cities in terms of the growth in the hospitality sector. They are not just growing in terms of tourists and infrastructure but also in terms of the employment and business in the public and private sectors. Various opportunities present themselves in the hospitality sector which allows you to benefit by starting a business in UAE, such as:
1.Increase in Tourism
It has many natural islands, beautiful beaches, diverse landscapes etc. which attract a lot of tourists. The increase in the number of chains of international hotels and resorts has also resulted in the growth of the tourism sector. The advancements in the technology have made Abu Dhabi an important hub for medical tourism.
People from all walks of life live together in harmony in Abu Dhabi. Also, there are tourists from all over the world present which makes it a very open and multi-cultural city.
Abu Dhabi is the capital city of the UAE and is located on a small island. It is connected to the mainland via 3 multi-lane motorway bridges. It is easily accessible by airways, land and sea. It takes less than 2 hours to drive from Abu Dhabi to Dubai and is considered as the gateway between the east and the west as it is located at a very strategic location. Since it is the capital of the country, it houses the Abu Dhabi Emiri family and the president of the UAE and is one of the most important cities in the UAE.
Abu Dhabi is considered as one of the safest cities and has outperformed cities like Vienna and Tokyo to be voted as the safest city in the world. The city has a strict customs system which all tourists have to go through and the Abu Dhabi International Airport has a number of security checks and inspection systems to enhance the security of the city.
5.Various Malls, Events and Festivals
Abu Dhabi has a tropical desert climate, due to this most of the time is spent indoors in malls and convention centres. Here malls and conventions are not only limited to shopping and serve every purpose such as meeting with friends, a refuge from the sun, etc. The various events not only engage the local population but it attracts a lot of attention from foreign countries.
6.Role of the Government
To promote and market the destination and its brand, the Abu Dhabi Tourism Authority has opened several international offices in the United Kingdom, Germany and France, with plans to open many others in the coming few years. Also, the Abu Dhabi Economic Vision 2030 will have a great impact on the tourism and hospitality industry in Abu Dhabi city.
The above reasons are the main ones which make Abu Dhabi a great tourist destination and a haven to start a business in the hospitality industry. Also, the focus on tourism and the Abu Dhabi Economic Vision 2030 will create a positive impact on the economy of the country and increase the influx of tourists. Currently, tourism in Abu Dhabi is one of the largest and fastest growing economic sectors. Keeping in mind that it is slowly trying to shift from the revenue created from selling oil and other petrochemical products, the Emirate is investing large amounts of funds and energy into this sector to ensure that Abu Dhabi becomes one of the world’s most attractive places for high-end tourists.
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How does medical tourism help in the growth of the Abu Dhabi’s hospitality industry?
Millions of tourists visit Abu Dhabi for medical purposes as the medical industry is uplifted with the use of modern technology. Thus, contributing to the growth of the hospitality sector.
How does the increasing number of events contribute to the hospitality sector in Abu Dhabi?
There are many conferences, and conventions held in Abu Dhabi. The city is considered one of the top locations for MICE tourism all over the world and thus affecting this industry.
How is the government focusing on the Abu Dhabi hospitality companies?
The government is trying hard to shift its focus from the hydrocarbon sector to the non-oil sector. Due to this long-term vision of the government, many initiatives have been taken up by the government which aims to create a positive influence on the visitors and tourists to the country.
How is the location of UAE advantageous?
The favorable location of the United Arab Emirates is a very big factor in attracting tourists. As the UAE acts as a connecting link between the three continents of Europe, Asia, and Africa, Abu Dhabi can easily access tourists from all three continents and also access the markets of the three continents.
From which two countries do Abu Dhabi gets the greater number of visitors?
Most numbers of tourists in Abu Dhabi are from the countries of India and China according to a recent study by the Department of Tourism and Culture.