dubai business tourism

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• Published: 05 November 2020

COVID-19 impact and survival strategy in business tourism market: the example of the UAE MICE industry

• Asad A. Aburumman 1  

Humanities and Social Sciences Communications volume  7 , Article number:  141 ( 2020 ) Cite this article

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• Business and management

Today the industry of meetings, incentives, conferences and exhibitions, commonly known under the name of MICE, contributes to economic diversification and actively stimulates the rational use of cultural-historical and natural recreational resources. As of 2019, the total contribution of the tourism sector to the GDP of the United Arab Emirates (UAE) equalled 11.5 per cent. More than 2.3 million visitors cited business as their main purpose of travel to Dubai in 2019, marking a two per cent increase compared to 2018. Thus, the UAE MICE industry was among the global leaders before the COVID-19 pandemic occurred. As a result of severe quarantine measures, the majority of destinations all over the world introduced COVID-19-related travel restrictions that were valid until May 2020. In the UAE, like in any other country, the coronavirus pandemic affected every industry, and especially the MICE one. Even though the consequences of COVID-19 have been multiply analysed by many UAE researchers, its global and local impact on the MICE industry, as well as the strategies for MICE companies’ survival, are described insufficiently. This study aimed to investigate the COVID-19 impact on both the global and the UAE MICE markets and identify a competitive survival strategy for tourism companies on the example of those operating in the UAE. The research revealed that under the conditions of harsh travel restrictions and closed borders, the UAE MICE industry is faced with a sharp reduction of demand. Emirati Airlines, hotels, and other tourism-related businesses have experienced significant material losses. In particular, the drop in scheduled departure flights comprised 82%. The multiplicative analysis performed in the course of the study identified the 5P marketing strategy and an outsourcing method as an optimal solution for MICE companies’ survival and recovery. The study results can be used by MICE businesses or researchers using specific company and market data for developing strategies aimed at overcoming COVID-related crisis and increasing the competitiveness of MICE companies in particular and the market as a whole.

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Introduction.

The development of MICE industry (meetings, incentives, conferences and events) contributes to economic diversification, stimulates the rational use of cultural and natural-recreational resources, and enables a balanced growth of the whole tourism sector (Manzoor et al., 2019 ; Astakhova, 2019 ). For the United Arab Emirates (UAE), the tourism sector is especially important as a driver of national gross domestic product (GDP). As stated by the Dubai Annual Visitor Report 2019, at the end of 2019, tourism was responsible for contributing an impressive 11.5 per cent in GDP value. Furthermore, according to the World Travel and Tourism Council’s Cities Report, Dubai’s tourism sector was ranked one of ‘Top 10’ strongest economic share generators (Dubai’s Department of Tourism and Commerce Market, 2020 ).

More than 2.3 million visitors cited business as their main purpose of travel to Dubai in 2019, marking a two per cent increase compared to 2018 (Dubai Department of Tourism and Commerce Market, 2020 ). According to the Dubai Annual Visitor Report, in 2019, Dubai held 301 meetings, conferences and incentives organised by Dubai Business Events, thereby bidding for 595 events in 2020. In the year 2019, Dubai World Trade Center (DWTC) welcomed its record 3.57 million delegates, which declared the visitation growth of up to four per cent from the previous year. Such an increase was driven by 349 MICE and business events, 97 of which were large scale with over 2000 attendees. Since 2019, international participation in DWTC events grew by 15 per cent (equivalent to 1.2 million visitors), underlining the strong benefits the world businesses see in coming to Dubai with the aim of sharing knowledge, networking and accelerating their development (Dubai Department of Tourism and Commerce Market, 2020 ). Last year, the business tourism events accounted for 3.3% of GDP, which amounts to USD 3.57 billion (Dubai World Trade Centre, 2019 ). The business tourism was a key element in stimulating the national economic growth and in the nearest future was supposed to reach intense development, making the UAE among the central players in the global MICE industry (Rogerson, 2017 ; Dubai Tourism, 2020 ). However, the introduced quarantine ruined these plans.

The COVID-19 pandemic has led to more than 4.3 million confirmed cases and more than 290.000 deaths worldwide. It raised fears of an impending economic crisis and recession. Social distancing, self-isolation, and travel restrictions have reduced the workforce in all sectors of the economy and have led to the loss of many jobs (Nicola et al., 2020 ; Tsindeliani, 2019 ).

Due to the lack of a vaccine and very limited treatment options, non-pharmaceutical interventions occurred to be the primary strategy to contain the pandemic. Unprecedented global travel restrictions and appeals to stay at home have caused the most critical disruptions of the global economy since World War II. Given the international travel bans that affect more than 90% of the global population and widespread restrictions on public gatherings and community mobility, tourism largely ceased in March 2020 (Gössling et al., 2020 ). Since the quarantine introduction, millions of jobs in the global tourism sector were lost due to flight, event and hotel cancellations (Siddiquei and Khan, 2020 ).

Given that international arrivals exceeded 1.5 billion for the first time only in 2019, the long-term evolution of tourism is proved to be greatly dependent on a decade of growth since the global financial crisis. Though, this last period of unhindered business tourism development has suddenly come to an end with the COVID-19 (Brouder, 2020 ).

Accompanied by quarantine in most countries and closed borders worldwide, COVID-19 pandemic heavily hit the MICE industry. The majority of domestic and international airlines were forced to cancel their flights due to severe quarantine measures and a lack of passengers, as people were frightened (Hoque et al., 2020 ).

The MICE industry was undermined by government efforts to contain and combat the pandemic. Borders were closed, trips banned, social and business events cancelled, and people were ordered to stay in their homes. By taking these actions, governments around the world sought to strike a balance between maintaining their economies and preventing dangerous levels of unemployment and deprivation. They tried to respond to public health imperatives to prevent the health systems’ collapse and mass deaths (Higgins-Desbiolles, 2020 ).

After months of unprecedented disruptions, the United Nations World Tourism Organization (UNWTO) reported that the tourist sector begins to revive in some areas, especially in the Northern Hemisphere. At the same time, travel restrictions remained valid for most global destinations, and business tourism continued to be among the most affected sector of all (World Tourism Organization, 2020a ).

Although Dubai’s tourism sector announced reopening the city for international tourism on July 7, 2020, people worldwide were still afraid of travelling. Consequently, the numbers of international arrivals in Dubai were far from those before March 2020 (Dubai Tourism, 2020 ).

Today, as the COVID-19 pandemic continues and the second wave is forecasted by epidemiologists, political and business leaders are wondering if the recession in the markets and the economy truly signals a recession; how serious the COVID-19 recession will be; what will be the growth and recovery scenarios, and whether there will be any lasting structural impact from the unfolding crisis. However, all the forecasts and indices will not disclose the virus trajectory, the effectiveness of containment measures, and the reactions of consumers and companies. For now, there is no single figure that can reliably reflect or foresee COVID-19’s economic impact, especially on the MICE market dependent on international travel and public events (Carlsson-Szlezak et al., 2020 ). Even though the pandemic has been on the run for several months only, the global and market-related losses are huge. Nevertheless, now it is extremely difficult to assess them due to the lack of sufficient statistical data and unwillingness of some companies, industries and countries, especially the developing ones, to disclose the level of economic decline (Stock, 2020 ).

Despite the existence of numerous studies dedicated to COVID-19 and its estimated effect on economies and industries, poor attention was given to the global and local impact of coronavirus disease on the MICE industry and to strategies for MICE companies’ survival. The MICE industry of the UAE is chosen as a case study due to its leading position at the global MICE market before the pandemic-related crisis occurred.

The aim of the study is to investigate the global and local impact of COVID-19 on the MICE industry and identify a competitive survival strategy for MICE companies taking the UAE business sector as an example.

With the purpose of achieving the goals set, the following tasks were formulated:

Assess the effect of coronavirus pandemic on the global tourism market and MICE industry in the UAE;

Select indicators of economic efficiency to compute the profitability of MICE companies in the UAE;

Suggest a strategy for MICE business survival in the context of outsourcing in a globalised economy heavily influenced by COVID-19 (on the example of the UAE).

Literature review

Business trips and business tours are somewhat similar in terms of event tourism education (Holloway and Humphreys, 2019 ). The difference lies in the very essence of the event, but the mechanisms are generally the same. The fact that Abu Dhabi and Dubai are among the most important business centres of today increases the role of business tourism and its share in the country’s tour production (Zhamgaryan, 2017 ). Numerous conferences, business congresses, and diplomatic visits constitute the major drivers of business tourism (Sovet et al., 2016 ).

Literature on the use of tourism infrastructure and tourism management distinguishes the following principles that most countries rely upon:

Tourism and product topologies, territoriality research.

The presence of private and public travel companies and agencies.

Resources and recreational opportunities, tourist flows and service offers.

Independent choice of tourism agencies.

Communication with a client through outsourcing in business tourism creates an opportunity for world leaders in this industry to quickly grow and solve multiple problems, including the global ones caused by COVID-19 pandemic.

To survive, tourism agencies need to make efficient use of all reserves (Kuznetsov and Kizyan, 2017 ). Ensuring survival through competitiveness is a dynamic process aimed at long-term gain. The main goal of managing corporate competitiveness in the MICE industry is to create sustainable competitive advantages that can recover the position of MICE agencies and enable their financial performance in the post-pandemic environment (Nukusheva et al., 2020 ).

Existing studies on competitiveness in the tourism industry emphasise the importance of infrastructure and support services for environmental sustainability (Croes, 2010 ; Jovanović and Ilić, 2016 ; Kastenholz et al., 2012 ; Mihalicˇ, 2013 ; Reitsamer and Brunner‐Sperdin, 2017 ; Zehrer et al., 2016 ). Managing tourist behaviour also contributes to sector competitiveness (Reisinger et al., 2019 ). Previous researchers relied on a survey of tourism experts and key tourism stakeholders (Andrades and Dimanche, 2019 ). Some scholars made use of a mixed (quantitative-qualitative) method to measure competitiveness of a given industry in Iran (Boroomand et al., 2019 ). Others have developed their own industry competitiveness indices. For instance, some authors used data from the Travel and Tourism Competitiveness Index produced by the World Economic Forum in a global analysis of industry competitiveness (Gómez-Vega and Picazo-Tadeo, 2019 ; Nazmfar et al., 2019 ), while others addressed alternative sources of information (Gu et al., 2019 ; Lopes et al., 2018 ).

Using structural equation modelling to the impact of tourism industry recovery and growth on environmental sustainability proves the presence of environmental degradation (Pulido-Fernández et al., 2019 ). The results of PROMETHEE and GAIA analysis from the competitiveness study of Portuguese tourist destinations revealed local competitors with their strengths and weaknesses. Among effective indicators are a sound tourism infrastructure and the potential of tourism destinations to grow through the adoption of public policies or private initiatives (Lopes et al., 2018 ).

The competitiveness of the MICE industry is considered with regard to subjective assumptions about competitiveness and significance of single indicators for sustainable development (Safarova, 2015 ). For example, Porter developed a universal model of micro-level competition. Poon’s framework for tourism competitiveness is built on innovative processes, quality, and privatisation. The WES model is a macroeconomic framework that takes into account tourism policies. In Dwyer’s model, the price component is recognised as a major component. The Crouch-Ritchie model integrates a whole range of tourism competitiveness factors, systematising global forces that pose challenges and open opportunities for tourism (Mazurek, 2014 ). The comparative study of Slovenia and Serbia tourism sectors using a modified IPA matrix identified the areas for improvement and actions for closing the gap between importance and performance of the MICE industry (these relate to the creation and adoption of innovative products) (Dwyer et al., 2016 ).

Materials and methods

With the purpose of analysing the impact of COVID-19 on global and the UAE MICE market, quantitative and qualitative analysis methods were used to evaluate the following data (in relative and absolute values):

World GDP growth rates for 2019, 2020 and 2021;

UAE GDP growth rates for 2019, 2020 and 2021;

International tourist arrivals for 2019 and 2020 (globally and by country);

Global international tourist arrivals from 2000 to 2020;

Global international tourist receipts from 2000 to 2020;

Employment loss in the travel, tourism and aviation industries in 2020;

Losses in travel, tourism and aviation industries in 2020;

Scheduled departure flights in January–December 2019 and January–July 2020 (globally and by country).

The following sources were used to retrieve the above data:

Previous studies;

Reports of the World Bank;

Reports of the World Tourism Organization;

Reports of the World Travel and Tourism Council;

Reports of the OAG company;

Reports of Dubai Corporation of Tourism and Commerce Marketing;

Reports of Dubai Department of Tourism and Commerce Marketing;

Reports of Dubai World Trade Centre;

Statista Global Business Data Platform;

Official website of UAE-Consulting company;

Reports of the Oxford Analytica consulting firm.

The current analysis framework includes indicators that are interconnected to achieve a more accurate characterisation of the quality of decision-making. The DuPont System of Analysis is designed to compute the Return on Investment. This multiplicative model is frequently used by managers to assess the impact of quantity, price, and nomenclature on the revenue, as well as to analyse the structure of marginal profit, cost, and coefficient ratios (DuPont model, 2015 ). This study integrates the DuPont analysis model with the gross profit from the sale indicator to measure the profitability of MICE companies. The gross profit from the sale helps to assess the impact of the travel service cost on the company’s profitability, improving the overall result of economic analysis. The modified formula has the following form:

Where P MICE represents the MICE company’s profitability (in %);

NP represents the net profit from the sale, USD;

IS represents the income from the sale, USD;

GP represents the gross profit from the sale, USD;

NI represents the net income from the sale, USD.

The study applies a statistical method to collect data on the MICE industry competitiveness and behaviour of consumers (data to develop a forecast). With this method, managers can more efficiently make decisions on business recovery and competitiveness strategies. The dependence between the number of service offers and factors of the MICE industry is expressed via the production function model. This model is built around the number of people employed and the outsourcing strategy spending.

It should be noted that since no reliable data on the MICE industry recovery are available to date, some figures necessary for calculations were used from the pre-pandemic period. As soon as actual data are available, more accurate calculations can be made.

Results and discussion

Covid-19 impact on global and country tourism market.

According to the United Nations World Tourism Organization (World Tourism Organization, 2020 b), as of May 2020, 100% of destinations worldwide had travel restrictions associated with COVID-19. The pandemic has significantly impacted every sector of the travel and tourism industry: airlines, transportation, cruise lines, hotels, restaurants, attractions (such as national parks, protected areas and cultural heritage sites), travel agencies, tour operators and online travel organisations. Small and medium-sized enterprises and micro-firms, which include a large informal tourism sector, account for about 80 per cent of the tourism sector, and many of them may not survive the crisis without substantial support. This will lead to a domino effect in the entire tourism supply chain, affecting livelihoods in agriculture, fisheries, creative industries and other services. The loss of jobs in the MICE industry has a disproportionate effect on women, youth and the indigenous population. Women-owned and operated MICE companies are often smaller in size and have fewer financial resources to counter the crisis. Women hold such frontline positions in the tourism industry as housekeeping and front desk staff, which puts a particular risk to their health (Twining Ward and McComb, 2020 ).

According to the World Bank, the world GDP is expected to decline by 5.21% in 2020 (the decrease in 2019 comprised 2.38%) and grow by 4.16% in 2021. The dynamics of GDP of the United Arab Emirates will comprise −4.5% (compared to 1.7% growth in 2019), followed by the estimated increase by 1.4% in 2021 (World Bank, 2020 ).

In 2019, the direct, indirect and induced impact of travel and tourism industry accounted for 10.3% of the global GDP (USD 8.9 trillion) and 330 million jobs, or 1 in 10 jobs globally. As a result of the COVID-19 pandemic, in 2020, the global travel and tourism market is predicted to see a loss of 121 million jobs worldwide and USD 3,435 billion in global GDP (World Travel and Tourism Council, 2020 ).

According to the data of the World Tourism Organization ( 2020a ), the United Nations agency taking charge of the promotion of responsible, sustainable and universally accessible tourism, as of June 22, 2020, the global fall in international tourist arrivals comprised 44% compared to 2019 (Fig. 1 ).

Source: developed by the authors based on data adapted from the World Tourism Organization ( 2020a ).

As shown in Fig. 1 , the most significant decrease in terms of international arrivals in January–April of 2020 experienced the Asia and the Pacific region (51%) followed by Europe (44%) and the Middle East (40%). The decline in international arrivals in the Americas and Africa equalled 36 and 35%, respectively (UNWTO, June 22, 2020).

In early May 2020, the UNWTO has outlined three possible scenarios for the MICE industry which indicate a potential decrease in the total number of international tourists from 58 to 78%, depending on when travel restrictions are lifted. Since mid-May, UNWTO has identified an increase in the number of destinations announcing measures to resume tourism. These include the introduction of enhanced safety and hygiene measures and policies aimed at developing domestic tourism (World Tourism Organization, 2020b ).

Geographically, the regions with the biggest relative drop in international tourist arrivals during January–April 2020 are Europe, Australia and New Zealand, and Western, Southern and Southeastern Asia (Fig. 2 ) Footnote 1 .

Source: developed by the authors based on data adapted from the World Tourism Organization ( 2020c ).

According to Fig. 3 , the largest absolute decrease in international tourist arrivals experienced Spain (10.8 million), followed by Thailand (7.3), Turkey (4.4), Singapore, Mexico, Italy, Vietnam (3.6 million each), Austria (3.2) and the United States (3.1) Footnote 2 Footnote 3 .

Despite several countries have positive values of international tourist arrivals (the United Arab Emirates, Belgium, Ireland, Jamaica, Guyana, Cayman Islands and Vanuatu), the data available in UNWTO report for them is for February 2020, when COVID-19-related travelling restrictions were not so severe. The same goes to a number of other countries with low decrease results (Aruba, Bhutan and Martinique).

The international tourist arrivals worldwide showed stable growth in 2000–2019, except for some crisis years with a slight drop: 2003 (SARS pandemic, 3 million) and 2009 (global economic crisis, 37 million). According to the worst-case scenario of the UNWTO, the decrease in 2020 can reach 1.140 billion (Fig. 4 ).

Source: developed by the authors based on data adapted from the World Tourism Organization ( 2020b ).

The global international tourism receipts also experienced constant growth in 2000–2019, with the exception of one year, 2009, when the drop was USD 88 billion (Fig. 5 ). In 2020 the decrease may reach USD 1.170 trillion as per the worst UNWTO scenario.

According to preliminary data, in the first quarter of 2020, the impact of aviation losses can reduce global GDP from 0.02 to 0.12%. Besides, if events develop according to the worst-case scenario, before the end of 2020, these aviation losses can be as high as 1.41–1.67%, with job losses about 25–30 million (Iacus et al., 2020 ).

Now, the UAE is at the forefront in terms of reducing demand for MICE services, as well as for global air travel. Emirati Airlines, hotels, and other travel and tourism-related businesses have experienced significant oversupply and must take decisive actions (Oxford Analytica, 2020 ). The Etihad Airways based in Abu Dhabi and Emirates Airline in Dubai have asked their employees to stay at home due to reduced number of flights thereby not excluding the possibility of layoffs (Siddiquei and Khan, 2020 ).

The global reduction of the scheduled departure flights comprised 2.8 million—from 3.234 million in January 2020 to 0.429 million on July 13, 2020. The anti-leaders in terms of the scheduled departure flights occurred to be the USA (−756 thousand flights), China (−363) and India (−112). For the same period, the UAE experienced a drop in 21 thousand flights, which is a comparatively small amount (Fig. 6 ).

Source: developed by the authors based on data adapted from OAG ( 2020 ).

As shown in Fig. 6 , starting from June, the situation with flights has begun to improve slightly. As to the UAE, the number of scheduled departure flights grew from 1.03 to 1.87 thousand weekly from June 1, 2020, to July 13, 2020.

In relative numbers, the deepest global fall of scheduled departure flights (compared to the same period of 2019) occurred in May 2020 and was 69% (Table 1 ). The countries with the biggest relative decrease were Singapore (97%, May), Spain (94%, April), Hong Kong (94%, April), Germany (93%, April), the United Kingdom (94%, June) and France (92%, May). The UAE had the most notable drop of 82% on June 1, 2020.

Today, more than 50 business events are scheduled for the fall of 2020 in Dubai, but they depend on the global and local epidemiological situation (Dubai Tourism, 2020 ).

Key performance indicators of the MICE industry

The computational results based on pre-pandemic data show that the long-term profitability of the MICE industry can be potentially stable and not influenced by investments in post-pandemic conditions. The rate of return on investment will decrease with a new tourism service. Competitiveness, however, has little relation to profitability ratio and hence is likely to increase.

The present findings are expected to facilitate marketing decision making. However, managers should decide on a strategy for competitiveness that will enable the reduction of MICE services cost, the increase of competitive services, and personnel training. An integrated multiplicative model of profitability that allows the assessment of the given strategy has the following form:

Where, N —cost of services provided, USD;

S —number of those employed in the MICE industry;

P —profit spent on outsourcing strategy development, USD;

i —number of new services.

The results prove the theoretical significance of the selected model (Fisher criterion is equal to 29.01; the coefficient of multiple determination amounts to 0.97; and the relative approximation error is 0.14). The correspondence between results is expressed using the criteria of truth and authenticity.

The elasticity of service provision corresponds to t 1  = 0.287 and t 2  = 0.128, assuming low efficiency. That is, with a per cent increase of profits or employees, the number of offers for MICE services can potentially grow either by 0.287 or by 0.128%, respectively. Consequently, personnel costs and working capital may have little impact on the competitiveness of the MICE industry in the UAE in post-pandemic conditions. These data were processed to develop three theoretical forecast scenarios for the sales of MICE services in post-pandemic conditions (Table 2 ).

The above forecasts based on pre-pandemic data suggest that MICE service sales can increase by 61.6% in 2020–2023. That is, the average annual number is predicted to increase by 25%, gaining USD 35 thousand in 2021. Hence, the economic growth model can serve as an effective tool for improving the tourism development strategy of travel agencies.

The calculations confirm that in pre-pandemic conditions (average tax about 39%; the minimum return 6.9%) when tourism companies used to spend 89% of their net earnings, the volume of tourism services could not be maintained and the gross value added was likely to drop by 3%. Therefore, to ensure better performance and a broader range of tourism services, the minimum rate of return in ideal conditions should be at least 12.9% and the grow value-added tax should not exceed 38.9%.

Strategy for MICE survival and competitiveness

A queuing model was proposed to optimise MICE companies in terms of performance in the post-pandemic market. The Kotler’s extended marketing mix model may serve as a framework of choice for hoteliers, providing a competitive advantage over the existing participants in the MICE market. This model allows evaluating MICE services from various segments of the market by the in-depth profitability and demand analyses.

The five Ps of the marketing mix model are:

Product—a hotel in which a business tourist stays and rests, where a business event is organised, etc.;

Price—pricing policy, discount, price-quality (varies depending on hotels and airlines, plus insurance, travel and event organisation), etc.;

Place—distribution channels, internet platforms, etc.;

Promotion—meetings, incentives, conventions, exhibitions (product launch), state summits, public relations and advertising, etc.;

People—loyal customers and VIP customers, staff, other customers, etc.

It can be argued that meetings and events in hotels that adhere to this marketing model will bring additional income to stakeholders and corporate business travel agencies and hence improve the image of MICE companies. The consequences of this 5P marketing mix model can also be the improvement of the tourism service quality.

Normally, large hotel corporations associate themselves with the image, rather than location. Therefore, when choosing strategies for gaining competitive advantage through outsourcing, the economic and marketing models were used. The underlying sustainable competitive advantages of MICE companies are innovation; service quality control; flexible, adaptive and strong organisational culture; intangible assets (image and business reputation); and consumer behaviour management. Hence, the competitiveness strategy should more focus on these variables. In cross-border tourism, the most promising strategies for competitiveness are those aimed at ensuring consumer loyalty, innovation and adaptation to the external environment like heightened health and safety measures. The MICE industry leaders are increasingly focused on current trends in outsourcing business processes, namely: expanding the boundaries of outsourcing; use of best practices, tools and technologies to ensure better management; the ability to integrate new features with existing systems; ensuring information confidentiality; the transition from individual services to service packages; and global coverage of existing and new markets.

Where there is the opportunity to survive in the pandemic and post-pandemic world and gain competitive advantages by reducing costs while increasing the efficiency of performance, business travel companies turn to outsourcing (It Pulse, 2019 ). Key Account Managers settle issues with the business travel organisation on the key client’s behalf (Suvorova, 2012 ). The main factors of competitiveness are the image and reliability of MICE companies. Competitiveness is achieved by improving the quality of services (Tymchyshyn-Chemerys and Pasternak, 2017 ). The previous studies highlighted the following important variables: total cost of business events; expenditures on restaurants and hotels, transportation, etc.; additional costs associated with increased demand; and value-added income.

The scientific novelty of this study is that it offers an optimal competitiveness strategy for the MICE industry offering to introduce outsourcing practices and the 5P marketing model.

Conclusions

The present research examined the impact of COVID-19 on global and UAE MICE market by way of quantitative and qualitative analysis. The study revealed that in the conditions of severe travel restrictions and closed borders, travel-dependant industries like MICE or passenger air services were significantly hit by the pandemic. In 2020, the COVID-19 quarantine measures are predicted to result in a global loss of 121 million jobs and USD 3,435 billion in GDP.

Now the UAE is at the forefront in terms of reducing demand for MICE services, as well as for global air travel. Emirati Airlines, hotels, and other travel and tourism-related businesses have experienced significant oversupply. Compared to the same period of 2019, the most considerable fall of scheduled departure flights in the UAE occurred on June 1, 2020, and equalled 82%. Despite the fact that the industry has started to recover after weakening anti-epidemic measures, this process can take some time (provided severe anti-pandemic measures will not be restored along with the new wave of COVID-2019).

The choice of survival and competitive strategy for the MICE industry is justified by the study of outsourcing business processes. Outsourcing enables the reduction of operating costs. In these circumstances, a MICE company needs to ‘keep the good work’ by employing competence, establishing a modern communication system, and promoting digitalisation.

The study used multiplicative analysis to evaluate the profitability of the MICE industry and the impact of operating costs on the competitiveness of MICE companies. The 5P marketing model was identified as an optimal choice for surviving and recovering MICE business companies through outsourcing. Since the major resource of organisations under consideration is people and the product, it is advisable to use the competitive marketing strategy when developing a management approach. However, because the product in the MICE industry is a result of multi-stage cooperation, the MICE service provider should simultaneously focus on the external environment.

The study findings can be used by travel agencies, MICE-related companies, or researchers, applying specific company and market data for developing strategies to overcome COVID-related crisis and increase the competitiveness of MICE business.

Due to the lack of reliable post-pandemic data, this research was limited to pre-pandemic information. As soon as actual data are available, more accurate calculations can be made, and theoretical research can be verified. Thus, there are enough opportunities for further research aimed at introducing the results obtained to certain post-pandemic MICE market conditions.

Data availability

Data used are available on request.

The aforementioned geographic regions correspond to the Standard Country or Area Codes for Statistics Use ( 1999 ) of the United Nations (M49 standard) .

The darker the colour in Fig. 1 is, the deeper is the decrease in international tourist arrivals.

There is no data on international arrivals for the markets of countries in grey in Fig. 1 .

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Dubai’s thriving tourism industry

Dubai is the destination of choice for those seeking luxury and glamour, but the emirate is showing it can also offer great value to business and leisure tourists alike

The halo of smoke that settled over Dubai on January 1 2014 – after a world-record breaking fireworks display of over 450,000 pyrotechnics – marked the end of a remarkable 2013 for the emirate. The growth-filled year most notably saw the adoption of the Tourism Vision 2020 strategy , a bold and ambitious plan to increase visitor numbers and double tourism revenue in seven short years, as well as Dubai’s victorious bid to host World Expo in 2020 – the world’s largest and most prestigious exhibition.

Long known internationally for its compelling lifestyle offer, iconic landmarks, and penchant for record-breaking initiatives, Dubai is often seen as an exciting, if not pricey, holiday destination. The city’s pristine beaches, skyscraper-lined streets and glitzy social scene are known to people the world over. As a destination, headline attractions such as the Burj Khalifa, the world’s tallest building; the Burj Al Arab, the world’s only seven-star hotel; and Ski Dubai, the world’s largest indoor snow park, characterise the emirate in the world’s collective consciousness.

Dubai is an increasingly accessible tourism destination, offering visitors both luxury and value

The city, however, is ever evolving, and moving beyond the superlatives to establish itself as a vibrant destination with a quality and diverse tourism offer and a range of attractions to suit every type of traveller. By doing so, Dubai is maturing into its role as a global city that is as welcoming as it is accessible, for both leisure and business tourists.

From hotels to meetings venues and transport options, the emirate is keen to show it maintains world-class standards in every category it caters to, from seven-star luxury to affordable three-star value. Dubai aims to become a truly international city by attracting more and more visitors of all budgets.

Tourism Vision 2020 As part of the Tourism Vision 2020, Dubai aims to double its visitor numbers and tourism revenue from 10 million people and almost £12bn in 2012, to 20 million people and almost £36bn in 2020. This ambitious plan focuses on maintaining market share, tapping high-potential markets, and increasing repeat visitors to Dubai through the leisure and business events sectors.

Dubai’s year-on-year visitor growth rate in 2012 was 9.3 percent and averaged eight percent over the previous five years. In 2013, the growth rate hit 11 percent and to reach 20 million tourists by 2020, a nine percent annual growth rate is required. The emirate is working hard to promote its year-round calendar of leisure events and grow its business and incentive tourism offer by capitalising on its location and infrastructure.

Conveniently connected One look at a world map and it becomes apparent why Dubai is the ideal place for a meeting of global delegates. Its location between east and west makes it the perfect gateway to emerging markets across the Middle East, Africa and Asia. As it stands, one third of the world’s population is within a four-hour flight and two thirds are within an eight-hour flight.

For business travellers, this strategic location is backed up with first-class accessibility thanks to state-of-the-art Dubai International Airport (DXB). Served by more than 145 airlines flying to more than 260 destinations across six continents, DXB is ranked the second-busiest airport in the world in terms of international passengers, according to Airports Council International’s latest figures.

Annual passenger traffic in 2013 reached 66,431,533, up 15.2 percent compared to the 57,684,550 passengers recorded during 2012. It is projected that passenger numbers will keep climbing, reaching 78 million in 2015 and 98 million by 2020.

The October 2013 opening of Al Maktoum International at Dubai World Central (DWC) supports this growth. Currently, Dubai’s second airport, Al Maktoum International will eventually become the world’s largest airport with a capacity of 160 million passengers and 12 million tonnes of cargo per year.

Business events Dubai won the right to host World Expo 2020, the world’s largest and most prestigious exhibition, in a landslide victory in November 2013 under the theme ‘connecting minds, creating the future’. Dubai expects around 25 million visitors over the Expo’s six-month period and that development in the run-up to the event will also play a decisive role in helping achieve Tourism Vision 2020.

The Dubai World Central (DWC) area near Jebel Ali will be central to Dubai’s hosting of World Expo 2020, and is currently the focal point of development plans in the emirate. At present Dubai’s infrastructure means doing business in and from the city is easy. There are more than 600 hotels in the emirate, constituting over 84,000 hotel rooms.

By 2016, according to current plans, over 100 new hotels will provide an additional 29,000 rooms. While more five-star properties are in the pipeline, Dubai will also see an increase in the number of four and three-star properties as the city looks to enhance its mid-market appeal.

For business travellers, Dubai’s hotels offer a plethora of flexible business facilities – whether you need a meeting room for 10 people or a convention for tens of thousands. And this is all supported by the expansive facilities offered at the impressive Dubai World Trade Centre – the host for over 50 percent of all exhibitions in the Middle East region. Understandably then, the city has been named Best Destination for MICE, Middle East, 2014 in the Business Destinations  Travel Awards.

Backed up by professional service and a ‘can do’ attitude, corporate travellers appreciate the business opportunities on offer in this city, which is why Dubai has been named among the top three most vibrant cities in the world in the latest City Momentum Index released by the realtor Jones Lang LaSalle in January 2014.

Describing the yardsticks for the index, LaSalle reported that highly dynamic cities are characterised by their speed of innovation and creation of cutting-edge businesses. The index clubs Dubai, and its hosting of Expo 2020, with Tokyo, which will stage the Olympics in the same year, calling them resurgent cities gearing up for their respective events with vigour.

Leisure events But of course, Dubai is more than just business. It’s one of the world’s safest, fastest-growing tourist destinations. For incentive delegates it offers an array of truly memorable experiences, with itineraries that capture the essence of Arabia with desert safaris, dune bashing, falconry and camel riding, while adrenaline junkies can go sky-diving over Palm Jumeirah or dive with sharks at the Dubai Aquarium. VIP groups can take a seaplane or helicopter ride over the city and indulge in afternoon tea at the Burj Al Arab.

Dubai is an increasingly accessible tourism destination, offering visitors both luxury and value. Whether witnessing The Dubai Fountain in full force, looking down on the city from the observation floor of the Burj Khalifa, visiting the amazing aquariums, the swathes of golden beaches, world-class shops, restaurants and nightlife are all on par with comparable top-flight global cities. What’s more, thanks to perpetual sunshine, it’s available all year round.

The possibilities in Dubai are endless – where else can a visitor spend the morning on the beach, the afternoon skiing and the evening riding a camel in the desert?

Dubai aims to attract 25 million tourists in 2025

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Dubai achieves its best ever annual tourism performance with international tourists

07 Feb, 2024

- Dubai achieves its best ever annual tourism performance with international tourists growing by 19.4% to 17.15 million in 2023

Dubai welcomed more tourists than ever before in 2023, attracting 17.15 million international overnight visitors over the course of the year, according to the latest data published by Dubai’s Department of Economy and Tourism (DET). Representing a 19.4% YoY growth over the 14.36 million tourist arrivals in 2022, last year’s figure also exceeded the previous record of 16.73 million visitors registered in 2019. 

The growth aligns with the goals of the Dubai Economic Agenda D33 launched just over a year ago by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to further consolidate Dubai’s position as one of the top three global cities for business and leisure, and the best city to visit, live and work in. 

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council of Dubai, said: “The best ever performance of Dubai's tourism sector in 2023 is a testament to the foresight of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. His Highness’s commitment to fostering resilience, excellence and innovation across economic sectors and encouraging meaningful public-private partnerships that deliver value has had a transformative impact on tourism development in the emirate.

Dubai’s ability to constantly generate diverse and refreshingly novel travel and tourism experiences catering to a wide range of visitors has been a key factor behind this exceptional performance. With several indicators outperforming pre-pandemic levels, this year’s results mark Dubai out as a vibrant focal point of growth in the global tourism landscape.”

Celebrating a record-breaking year in 2023, Dubai further bolstered its ranking as the No.1 global destination for an unprecedented third successive year in the Tripadvisor Travellers’ Choice Awards 2024, the first city to achieve this unique accolade. The milestones are testament to the emirate’s vibrant and diverse offerings, supported by world-class infrastructure, exceptional service at all touchpoints, and continuous collaboration between the government and private sectors.

The city caters to travellers of all budgets and preferences, and a year-round calendar of business, leisure and sporting events continues to attract international visitors.  The tourism sector's performance closely parallels the emirate's 3.3% GDP growth in the first nine months of 2023, further highlighting the symbiotic relationship between tourism and economic prosperity. Accommodation and food services activities witnessed a remarkable 11.1% growth, solidifying Dubai’s position as a global tourism leader. 

Dubai’s international visitor performance has outshone global tourism trends, with the latest data from the UN World Tourism Organisation revealing that, overall, international tourism reached 88% of pre-pandemic levels by the end of 2023. The only region to overcome pre-pandemic levels with 22% visitation growth above 2019, the Middle East led global recovery in relative terms.

His Excellency, Helal Saeed Almarri, Director General of Dubai Department of Economy and Tourism (DET), said: "The significant rebound of Dubai's tourism sector, outstripping global recovery rates, stands as a testament to the vision and leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum. This surge not only commemorates the inaugural year of the Dubai Economic Agenda D33 but also highlights the efficacy of a strategy that is a decade in the making, exemplifying resilience and adaptability as central to our economic impetus.

Under the oversight of this decisive leadership and a proven public-private partnership model, Dubai has sustained robust growth, fostering confidence within local and global industries, players and enablers. 

Our success stems from a diversified portfolio, with significant gains in leisure, new emerging segments, and the MICE sector as a whole, which have been further catalysed by liberal visa policies and dynamic private sector ambition. These strides reinforce Dubai's status as a premier destination for living, visiting, and conducting business.

With the Dubai Economic Agenda D33’s strategy serving as our economic compass for the next ten years, we are committed to strengthening the tourism sector, enhancing our assets and infrastructure, and stimulating broader economic growth. This comprehensive approach ensures tourism thrives in tandem with our goals of talent acquisition, business acceleration and government innovation, to position Dubai as the epicentre for all those eyeing their next phase of growth and expansion."

Key regions maintain momentum  

The strong tourism performance in 2023 saw Dubai maintain its position as a first-choice travel destination for visitors both from key traditional and emerging markets. From a regional perspective, the GCC and MENA delivered a combined 28% of the share, demonstrating Dubai’s allure as a trusted and favoured destination for visitors from neighbouring markets. Western Europe and South Asia accounted for 19% and 18% of arrivals respectively, while CIS/Eastern Europe recorded a 13% share. The North Asia and South-East Asia region accounted for 9% of arrivals, the Americas contributed 7%, Africa 4% and Australasia 2%.  

Hotels outperform pre-pandemic levels across all metrics  

Dubai’s hospitality sector, which is integral to the emirate’s destination promise and overall growth of the tourism industry, continued to perform strongly, surpassing pre-pandemic levels across all hospitality metrics - Occupancy, Occupied Room Nights, Guests’ Length of Stay, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR).

Occupancy remains among the highest in the world

Average occupancy for the hotel sector in 2023 stood at 77.4%, among the world’s highest, increasing from 72.9% in 2022 and exceeding the 75.3% average occupancy in 2019. The high occupancy level is an exceptional achievement, given an overall 19% increase in room supply in 2023 compared to 2019. 

Milestone 150,000 room keys achieved

Dubai’s hotel inventory at the end of December 2023 comprised 150,291 rooms at 821 establishments, compared to 146,496 rooms available at the end of December 2022 across 804 establishments and 126,120 rooms available at the end of December 2019 across 741 establishments. Last year’s milestone achievement reflects the growth and success in the hospitality industry.

Occupied room nights surge to record high

In 2023, occupied room nights soared to a record high of 41.70 million, marking a 11% increase compared to 2022 (37.43 million). This growth also represents a substantial 30% rise from the pre-pandemic figures of 2019, which saw 32.11 million occupied room nights.

Reflecting the commitment of the city and hospitality sector to offer competitive pricing, the 2023 ADR of AED536 matched the ADR in 2022. The hotel sector’s robust performance is also evident in its RevPAR growth – an increase of 6% compared to 2022 (AED415 vs. AED391) and a growth of 33% over the pre-pandemic period of 2019 (RevPAR of AED312). Guests’ Length of Stay was 3.8 nights in 2023, a 10% increase from 3.4 nights in 2019.  

His Excellency Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (DCTCM), said: “As Dubai continues its exponential growth in alignment with the D33 Agenda set forth by our forward-thinking leadership, we remain committed to further elevating our standards and to advancing with innovative and distinctive world-class infrastructure, experiences and attractions. 

The extensive range of offerings and Dubai's reputation as a secure, inclusive and accessible destination have been consistently recognised across multiple global indices, culminating in the city being crowned the No.1 global destination for an unprecedented third year in a row in the Tripadvisor Travellers’ Choice Awards 2024. 

Our partners have played a crucial role in achieving this top ranking through their contributions to Dubai's tourism expansion and the industry's rapid resurgence, especially with their active involvement in our global campaigns and marketing endeavours. The sustained success will further enhance visitors’ enduring trust, confidence and affinity for Dubai, as it accelerates towards the goal of becoming the best city to visit, live and work in, and ultimately converting visitors into long-term residents.

We are strategically harnessing the significant momentum generated during a highly successful 2023 to drive growth across all segments of tourism. As we look forward to welcoming more visitors in 2024, the unwavering support of our public and private sector partners will be pivotal in enhancing our capacity to showcase our unparalleled offerings tailored to cater to the diverse preferences and budgets of international travellers.”

Global liveability hub

In addition to securing the Tripadvisor Travellers' Choice Awards, Dubai also garnered recognition across various fronts, offering residents and visitors a unique blend of opportunities, safety, and world-class amenities in a vibrant and dynamic setting.

In a report by financial services provider Remitly, Dubai was hailed as the No.1 city in the world to relocate to in 2023, showcasing its allure as a preferred destination for individuals seeking new opportunities and a high quality of life. Furthermore, property consultancy Savills identified Dubai as the best city in the world for remote workers, emphasising its conducive environment for professionals embracing the virtual working lifestyle. 

Dubai’s appeal as a thriving global hub was further highlighted by Euromonitor International’s Top 100 City Destinations Index 2023, which named Dubai the world’s No.2 city destination, highlighting its popularity among international travellers. The city's recognition as one of the top 10 cities in the Global Power City Index, as reported by the Mori Memorial Foundation’s Institute for Urban Strategies in Japan, further reinforces its stature as a key player on the global stage.

Kicking off global partnerships and campaigns  

As part of its year-round drive to showcase Dubai to the world, DET entered into a landmark collaboration with Spanish football giants Real Madrid Club de Fútbol. The multi-year agreement has brought together two iconic brands and builds on Real Madrid’s longtime partnership with Dubai's flagship airline, Emirates, while Dubai Parks and Resorts™ will also be home to the first Real Madrid-themed park, Real Madrid World.

Keeping with the emirate’s “nothing is impossible” spirit, Dubai hosted another record-breaking stunt with Red Bull Air Race Champion Luke Czepiela landing his plane on the helipad of Burj Al Arab Jumeirah, encouraging visitors and residents to achieve new heights and push boundaries. Another feat in 2023 saw American Brian Grubb performing a world-first wakeskate and base jump at the Address Beach Resort.

Dubai has also established a strong and ongoing partnership with Academy Award-winning composer Hans Zimmer that goes beyond a typical concert. "Hans Zimmer Live" marked his first Middle East performance at Dubai's Coca-Cola Arena during the region’s longest running Dubai Shopping Festival, kicking off a deep exploration into the city's culture.

This collaboration was not just a one-time show. Zimmer has become a vocal supporter of Dubai, creating "Sounds of Dubai," a unique musical piece that captures the city's vibe.

More than just entertainment, this collaboration aligns with the Dubai Economic Agenda D33, showcasing Dubai's ability to blend tradition with innovation, highlighting the value in its creative talent. This diverse approach enriches Dubai's global image as a hub for culture and collaboration, contributing to the city's ongoing success story.

International events destination  

Dubai Festivals and Retail Establishment (DFRE) positions Dubai as an international entertainment hub, and in 2023, the city hosted an array of year-round events spearheaded by the iconic Dubai Shopping Festival. DFRE’s annual Retail Calendar encompasses everything from arts and books, food and sports, music and concerts, heritage and culture through to shopping and fashion, as well as retail promotions offering life-changing prizes to lucky residents and visitors. 

The region’s leading destination for business events, Dubai attracts a wide range of business travellers through its calendar of annual exhibitions and trade shows that are among the largest in the world. Major business and leisure events held in 2023 included Gulfood (134,000 visitors and 5,000 exhibitors), Gitex Global Dubai (170,000 visitors and 6,000 exhibitors), the International Boat Show (30,000 visitors) and Arabian Travel Market (40,000 visitors). Dubai Business Events, part of DET and the city’s official convention bureau, ensured continued growth in this space by working with stakeholders to win a record 349 bids to host international conferences, congresses, meetings, and incentive travel programmes over the coming years.

Culinary innovation and accolades 

With a vibrant and thriving gastronomy scene, Dubai is a modern culinary capital with 13,000 restaurants and cafes offering a wide variety of cuisines and experiences. Following its launch in 2022, the second edition of the MICHELIN Guide Dubai was released in 2023, with three new one-star restaurants and one new two-starred included. In total, the 2023 guide featured 90 restaurants, up from 69, including three that were awarded two stars, 11 with one star, three with a Green Star, 17 Bib Gourmands and 59 Michelin selected restaurants.  

Two homegrown Dubai restaurants were included in The World's 50 Best Restaurants List for 2023. Trèsind Studio was ranked at No.11, Orfali Bros Bistro was No.46 while Ossiano was part of the extended list, at No.87. There were also 113 Dubai restaurants included in the Gault&Millau UAE 2023 guide. 

Delivering on sustainability goals 

Dubai is a leader in sustainability, with its efforts aligning with global objectives, such as the United Nations Sustainable Development Goals 2030. Aligned with the Dubai Economic Agenda D33 and the UAE’s Net Zero 2050 strategy, the ongoing Dubai Sustainable Tourism (DST) drive initiated by DET provides support for the hospitality industry through several programmes. 

In July 2023, DET launched the Dubai Sustainable Tourism Stamp, a new initiative, as part of DST, that recently recognised 70 hotels with the highest level of adherence to DET’s ‘19 Sustainability Requirements’, the first of its kind in the region. Developed in collaboration with Dubai’s hospitality sector, the stamp is designed to accelerate efforts towards empowering the tourism sector to achieve its sustainability goals and serve as a validation of the hotel’s dedication to sustainable practices.  

Other sustainability initiatives include Dubai Can, with its ‘Refill for Life’ campaign promoting the use of reusable bottles and encouraging people to refill via 50 water fountains established throughout the city. A second Dubai Can project, the Dubai Reef, was launched in December 2023. One of the world’s largest marine reef developments, Dubai Reef is part of the city’s efforts to increase fish stocks, support sustainable fishing, and contribute to boosting food security. It will also play a vital role in reducing carbon emissions and increasing marine biodiversity.

DET also relaunched the pioneering Carbon Calculator tool that measures the carbon footprint within Dubai’s hospitality sector. The city’s sustainability profile received a significant boost towards the end of 2023 when the UAE hosted COP28, the UN Climate Change Conference, at Expo City Dubai.

Global cruise and yacht tourism destination 

As a key pillar of the emirate’s tourism industry, cruise tourism will help drive efforts to transform Dubai into one of the world’s top three cities for business and leisure in line with the D33 Agenda. The expansion of the cruise sector has significant benefits for Dubai as a regional tourism hub and the development of the cruising industry further consolidates Dubai’s status as a gateway to the region.  

Dubai’s 2023-2024 cruise season was launched with the arrival of the luxury liner Mein Schiff 2 in October. The vessel docked at the Hamdan bin Mohammed Cruise Terminal at Mina Rashid, marking the start of another exciting period for cruise enthusiasts. Visitation by cruise passengers is largely concentrated around key cruise hubs, such as Mina Rashid which offers easy access to the historic Dubai Creek, home to the city’s rich cultural heritage, and Dubai Harbour located next to the lively Dubai Marina and the iconic Palm Jumeirah.  Dubai’s position as the region’s cruise hub is further validated by the city being awarded the Best Port at the CRUCEROADICTO AWARDS in Spain, an international recognition of the best cruise lines, ships, and ports selected by global cruise travellers. 

With 15 marinas, more than 3,600 berths and seamless support facilities for pleasure crafts, superyachts and gigayachts, Dubai has also become a magnet for global yacht tourism. The winter season from October to April attracts more and more yachts annually and the emirate’s strategic location provides easy access to some of the most scenic yachting destinations in the region, as well as the UAE’s stunning coastline.

New initiatives to spur growth 

Another major initiative announced in 2023 was the Dubai Master Plan for Public Beaches, which aims to increase the length of public beaches by 400% by 2040 and increase services offered on public beaches by 300% by 2025. Dubai’s tourism offering will be further expanded with the implementation of the Dubai 2040 Urban Master Plan. Strategic goals of this long-term plan include doubling green and leisure areas and enhancing their qualities, safeguarding the emirate’s cultural and urban heritage, and providing sustainable and flexible means of mobility. Under the Master Plan, the total space dedicated to hotels and tourist activities will increase by over 100% over the next two decades.

To read the latest research, insights and official reports from across Dubai’s tourism industry, please visit: www.dubaitourism.gov.ae/en/research-and-insights.  

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Dubai's tourism sector: A testament to resilience and innovation

Dubai’s tourism sector: a testament to resilience and innovation.

Dubai stood out as a brilliant example of perseverance and ingenuity in the face of a global epidemic that brought the tourism sector to a standstill. The emirate has effectively restored its tourism in the last two years, drawing millions of worldwide tourists. It is worth noting that Dubai was one of the first places to reopen its doors to visitors following the global lockdowns. How did the city manage it?

Dubai’s tourist business has been built on a solid foundation and is capable of remarkable comebacks like this thanks to modern technology infrastructure, world-class attractions, and imaginative leadership. The city’s fast expansion continues, promising a bright future for the emirate.

Record-breaking visitor numbers

The phenomenal revival of Dubai is evident in record-breaking tourist numbers. The city received a remarkable total of 3.10 million foreign visitors in the first two months of 2023 alone, showing a healthy rebound. The biggest number of tourists from India, with over 401,000 guests pouring into Dubai during this period, is a significant achievement. The month of January 2023 saw a whopping 1.47 million visitors, cementing Dubai’s position as a major worldwide tourist destination.

Impressive growth trajectory

Dubai’s tourist sector is seeing phenomenal growth. The emirate had a remarkable rise of 7.08 million tourists in 2022, representing a 97% increase over the previous year. This exponential rise propelled Dubai’s visitor arrivals to 14.36 million in 2022, bringing the city closer to pre-pandemic levels of 16.73 million in 2019. This exceptional achievement not only exceeded global and regional recovery levels but also earned Dubai’s place as the world’s top destination for the second year in a row, according to the coveted Tripadvisor Travellers’ Choice Awards.

A plethora of accommodation options

Dubai has an incredible choice of lodging options to accommodate the expanding number of guests. The city had 804 hotels with a total of 146,496 rooms as of the end of 2022. The average daily price for a hotel room in Dubai was AED 536, ensuring that tourists have a variety of options to suit their interests and budgets.

A promising future

Dubai’s success in rebuilding its tourist sector opens up new opportunities for growth and development. The capacity of the emirate to recover and draw millions of tourists demonstrates its steadfast commitment to offering excellent experiences and preserving its position as a top global destination. The tourist industry’s sustained rise will contribute to Dubai’s and the UAE’s economic success by supporting job creation, attracting investments, and fueling overall growth.

In a nutshell, Dubai’s outstanding tourist sector rebound during the last two years demonstrates the emirate’s endurance, inventiveness, and dedication to quality. Dubai has clearly established itself as a preferred destination for tourists, with record-breaking visitor numbers, various source markets, and a plethora of world-class attractions.

As the emirate continues to excel in the global tourism landscape, it paves the way for further growth and economic development. With visionary leadership and a relentless pursuit of excellence, Dubai’s tourism sector promises a bright and prosperous future for the emirate and the entire UAE.

Also read: Dubai’s lifestyle and tourism: What makes the emirate a tourist and resident haven

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Emirates is dealing with a 30,000 bag backlog as it grovels to customers about its handling of Dubai floods

• Severe flooding caused by the heaviest rain in 75 years brought travel chaos to Dubai Airport last week.
• The ongoing fallout has prompted Emirates boss Tim Clark to issue an apology to customers. 
• 30,000 bags still need to be returned to customers, he said.

Emirates, the Middle East's largest airline, is still trying to return 30,000 leftover bags to customers affected by the torrential rains and flooding that brought Dubai Airport to a standstill last week.

Over the weekend, the airline's president, Tim Clark, acknowledged that Emirates' response to the disruption had been "far from perfect" and apologized to customers.

"I would like to offer our most sincere apologies to every customer who has had their travel plans disrupted during this time," Clark wrote in an open letter posted online on Saturday.

Calling the previous week "one of the toughest for Emirates operationally," he said that the airline had been forced to cancel nearly 400 flights and delay many more after storms brought the region's highest rainfall in 75 years.

"Flooded roads impeded the ability of our customers, pilots, cabin crew, and airport employees to reach the airport, and also the movement of essential supplies like meals and other flight amenities," Clark wrote.

In total, 1,478 flights had been canceled at the world's second busiest airport by Friday morning, according to Reuters.

While planes remained stuck on flooded taxiways, submerged roads surrounding the airport left some passengers stranded in the airport.

Related stories

To accommodate disrupted passengers, Emirates said it had secured 12,000 hotel rooms and issued 250,000 meal vouchers.

Despite the chaos and a government warning telling people to stay at home, Emirates flight attendants in Dubai were also told to report for duty.

However, Clark acknowledged that many passengers had been frustrated by the congestion, lack of information, and confusion at terminals.

In an effort to handle the ongoing fallout, he said that a task force had been created to sort and return 30,000 pieces of left-over luggage to its owners.

The airline officially resumed regular flight operations at Dubai Airport on Saturday, but warned it would still take several days to clear the backlog.

Non-UAE-based carriers were still facing restrictions over the weekend. Foreign airlines with more than two flights in 24 hours were issued with a Notice to Air Missions (NOTAM) instructing them to reduce operations by 50%, Indian news agency PTI reported.

According to FlightRadar 24's data , all arrivals and departures were largely running to schedule again on Monday morning.

The oil-rich United Arab Emirates has become one of the most attractive economic hubs in the Gulf region.

Its efforts to diversify its economy away from oil, centered on Dubai as a tourism hot spot, have helped the country position itself as a major player on the world stage. In a sign of its growing popularity, the number of passengers traveling to Dubai Airport increased by 31.7% in the last year.

Watch: Thousands of bags pile up at US airports after flight cancellations

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Seagliders that will travel from Abu Dhabi to Dubai in 25 minutes to be built in UAE

Abu dhabi's department of transport to trial use of regent seagliders to connect islands and emirates.

Regent is developing its passenger craft, Viceroy, which will be able to travel at speeds of up to 290kph, cutting travel times. All photos: Regent

Seagliders that travel at high speeds over water will be built in the UAE following the signing of an agreement between the US maritime transport company Regent and Abu Dhabi Investment Office on Thursday.

Boston start-up Regent has also signed an agreement with Abu Dhabi's Department of Transport to integrate its electric-powered seaglider into the existing UAE transportation network, with a focus on high-impact routes, such as offshore services to Delma Island and Sir Bani Yas Island.

Regent is in the development stages of its passenger craft, Viceroy, which uses wing-in-ground effect to travel at speeds of up to 290kph within a wingspan of the water's surface, cutting travel times between coastal cities by more than half.

The company, which has demonstrated its float, foil and fly technology in testing on a quarter-scale model, is now building a full-scale 20-metre wingspan model capable of carrying 12 passengers and two crew to test its use before going into full production next year at its base in Rhode Island.

Regent has had significant support from the industry and investors in raising its $60 million Series A Funding, including Abu Dhabi's Strategic Development Funds and Neom Investment Fund , which made the single largest investment in the round.

There has also been backing from Japan Airlines, Hawaiian Airlines, Lockheed Martin and Shark Tank star and billionaire Mark Cuban , with total investment now standing at $90 million.

Co-founder and chief executive Billy Thalheimer said Regent also has a backorder of more than $9 billion from airline and ferry operators for both the Viceroy craft and the larger 100-passenger Monarch, which he expects will transform regional transport for coastal areas.

Regent has manufacturing and test facilities in Rhode Island and is "looking at other sites within the US" to develop its building capacity, Mr Thalheimer told The National .

To help meet orders in the Middle East, Europe and Indo-Pacific regions, Regent will "localise sea glider manufacturing in Abu Dhabi", he said.

"We’re working right now with Adio on the plan. Our intention is to establish manufacturing by the end of the decade," he said.

"The next step is to pull in all the relevant players, do site identification, manufacturing readiness and figure out what the whole plan looks like as to when can we start and what manufacturing will entail in Abu Dhabi."

Regent will be part of the Smart and Autonomous Vehicles Industry (Savi) cluster, located in Masdar City, which aims to develop smart and self-driving vehicles for air, land and sea use.

Established as a multi-modal hub in October, Savi is expected to contribute between Dh90 billion and Dh120 billion ($24.5 billion to $32.7 billion) to the UAE's economy and generate up to 50,000 jobs.

Badr Al Olama, the director general of Adio, said Regent will "shape the future of coastal transportation".

"With immense speed and efficiency, I’m confident Abu Dhabi will see the global deployment of electric seagliders and these will dramatically change how goods and people move between the world’s coastal areas going forward," Mr Al Olama said in a news release on Thursday.

Production capacity will depend on demand, but Regent already has firm orders from an unnamed Abu Dhabi-based commercial operator and another in Egypt.

Final details on what will be built in Abu Dhabi are still being thrashed out, he said, but the plan is to have full production facilities in the emirate.

"What we're manufacturing is still part of the discussion," Mr Thalheimer said.

"The intention is to manufacture something but the goal would be full seagliders, and the next step is really figuring out what it actually looks like, putting the nuts and bolts of the details of the deal together."

Fly like a bird

Wing-in-ground effect technology has been around for more than 60 years and is based on using aerodynamic lift plus air pressure generated by flying close to the water surface – the same principle that allows gulls to glide low over the water.

Regent’s seaglider is designed with an intermediary position between boat and glider, popping up on a hydrofoil, allowing it to navigate busier waterways and inclement weather.

Once it has motored out of a harbour on a hydrofoil, the seaglider takes off at a low speed using the water as a runway, then flies over the waves at a top speed of 290kph.

It allows for quick access around coastal waters, particularly from islands to mainland, and is capable of serving routes of up to 300km with existing battery technology and 800km with next-gen batteries.

Abu Dhabi's Department of Transport, in an agreement announced at the DriftX event on Thursday, will integrate the use of seagliders in the emirate, starting with Delma Island, where 10,000 residents mainly use a once-daily flight to access services on the mainland, and Sir Bani Yas Island, home to a protected wildlife reserve and the Desert Islands Resort & Spa by Anantara.

"Currently, it’s [Delma] serviced by Q400 turbo props with one flight a day," Mr Thalheimer said.

"You can imagine how inconvenient it is to have to take an aircraft which only goes once a day to leave your home to access economic opportunities, education, medical care. Seagliders increase the flexibility and access to the mainland for those on Delma Island."

Smart plans

Abu Dhabi has been working on providing residents with smarter, more efficient modes of transport.

In February, Abu Dhabi and Shenzhen signed a twin-city agreement to share knowledge and collaborate on smart city projects across several areas including infrastructure, city planning, green mobility, transport, advanced technology, autonomous solutions, sustainability and urban development.

Abu Dhabi is also trialling driverless taxis in the emirate, while flying taxis are expected to hit Abu Dhabi and Dubai skies next year, cutting travel times significantly between the two emirates.

Mr Thalheimer said the seagliders will also help with inter-emirate connectivity and offer commuters an option to avoid busy motorways between Abu Dhabi and Ras Al Khaimah.

"Right now, if you look at Abu Dhabi to Ras Al Khaimah, you're talking about a two and a half hour drive, at best. But [with seagliders] you will be able to do day trips and can do that trip in under an hour.

"It’s sort of like a Gulf Metro that seagliders would create here, which the DoT can operate."

The trip between Abu Dhabi and Dubai is one of the busiest road journeys in the UAE. Offering high-speed connections on water between the two cities would cut travel times by more than half.

"Seaglider would be about equal on that route. It would be a little faster than a car because you’re moving faster but obviously a car goes door to door but the seaglider has to go to the dock first.

"It would be about 25 minutes in terms of the voyage itself. So we can cut the travel time in half."

In December, Regent signed an agreement with Aramex, the Middle East's largest courier firm, to develop electric seagliders for middle-mile logistics.

It is also working with Saudi Arabia's Neom project to provide connectivity around the islands along the coastline, particularly Sindalah.

"Neom is looking for better connectivity – faster, cheaper, greener, more comfortable connectivity throughout the islands of the Red Sea," he said.

Of particular interest for airlines and ferry operators is the Monarch, which Mr Thalheimer said will enter into service "before the end of the decade".

"All of this technology, the ground effect even the hydrodynamics of the hydrofoil scales really well with size," he said.

"Aircraft flying at altitude, the bigger they get, the heavier they get, the more energy intensive they get, the harder it is to fly large aircraft with batteries."

He said ground effect offers an efficient form of flying that gives it a distinct advantage over aircraft.

"Always being over a place to land is very efficient in terms of how much reserve fuel you need to carry and the hydrodynamic scale very well with size," he said.

"You're talking 50 per cent reduction in operating costs, which ostensibly all gets passed on to the customer as savings by going to seagliders and by going to that large Monarch variant."

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Hot Oceans Worsened Dubai’s Dramatic Flooding, Scientists Say

An international team of researchers found that heavy rains had intensified in the region, though they couldn’t say for sure how much climate change was responsible.

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By Raymond Zhong

Scenes of flood-ravaged neighborhoods in one of the planet’s driest regions stunned the world this month. Heavy rains in the United Arab Emirates and Oman submerged cars, clogged highways and killed at least 21 people. Flights out of Dubai’s airport, a major global hub, were severely disrupted.

The downpours weren’t a total surprise — forecasters had anticipated the storms several days earlier and issued warnings. But they were certainly unusual.

Here’s what to know.

Heavy rain there is rare, but not unheard-of.

On average, the Arabian Peninsula receives a scant few inches of rain a year, although scientists have found that a sizable chunk of that precipitation falls in infrequent but severe bursts, not as periodic showers. These rains often come during El Niño conditions like the ones the world is experiencing now.

U.A.E. officials said the 24-hour rain total on April 16 was the country’s largest since records there began in 1949 . And parts of the nation had already experienced an earlier round of thunderstorms in March.

Oman, with its coastline on the Arabian Sea, is also vulnerable to tropical cyclones. Past storms there have brought torrential rain, powerful winds and mudslides, causing extensive damage.

Global warming is projected to intensify downpours.

Stronger storms are a key consequence of human-caused global warming. As the atmosphere gets hotter, it can hold more moisture, which can eventually make its way down to the earth as rain or snow.

But that doesn’t mean rainfall patterns are changing in precisely the same way across every part of the globe.

In their latest assessment of climate research , scientists convened by the United Nations found there wasn’t enough data to have firm conclusions about rainfall trends in the Arabian Peninsula and how climate change was affecting them. The researchers said, however, that if global warming were to be allowed to continue worsening in the coming decades, extreme downpours in the region would quite likely become more intense and more frequent.

Hot oceans are a big factor.

An international team of scientists has made a first attempt at estimating the extent to which climate change may have contributed to April’s storms. The researchers didn’t manage to pin down the connection precisely, though in their analysis, they did highlight one known driver of heavy rain in the region: above-normal ocean temperatures.

Large parts of the Indian, Pacific and Atlantic Oceans have been hotter than usual recently, in part because of El Niño and other natural weather cycles, and in part because of human-induced warming .

When looking only at El Niño years, the scientists estimated that storm events as infrequent as this month’s delivered 10 percent to 40 percent more rain to the region than they would in a world that hadn’t been warmed by human activities. They cautioned, however, that these estimates were highly uncertain.

“Rainfall, in general, is getting more extreme,” said Mansour Almazroui, a climate scientist at King Abdulaziz University in Jeddah, Saudi Arabia, and one of the researchers who contributed to the analysis.

The analysis was conducted by scientists affiliated with World Weather Attribution, a research collaboration that studies extreme weather events shortly after they occur. Their findings about this month’s rains haven’t yet been peer reviewed, but are based on standardized methods .

The role of cloud seeding isn’t clear.

The U.A.E. has for decades worked to increase rainfall and boost water supplies by seeding clouds. Essentially, this involves shooting particles into clouds to encourage the moisture to gather into larger, heavier droplets, ones that are more likely to fall as rain or snow.

Cloud seeding and other rain-enhancement methods have been tried around the world, including in Australia, China, India, Israel, South Africa and the United States. Studies have found that these operations can, at best, affect precipitation modestly — enough to turn a downpour into a bigger downpour, but probably not a drizzle into a deluge.

Still, experts said pinning down how much seeding might have contributed to this month’s storms would require detailed study.

“In general, it is quite a challenge to assess the impact of seeding,” said Luca Delle Monache, a climate scientist at the Scripps Institution of Oceanography in La Jolla, Calif. Dr. Delle Monache has been leading efforts to use artificial intelligence to improve the U.A.E.’s rain-enhancement program.

An official with the U.A.E.’s National Center of Meteorology, Omar Al Yazeedi, told news outlets that the agency didn’t conduct any seeding during the latest storms. His statements didn’t make clear, however, whether that was also true in the hours or days before.

Mr. Al Yazeedi didn’t respond to emailed questions from The New York Times, and Adel Kamal, a spokesman for the center, didn’t have further comment.

Cities in dry places just aren’t designed for floods.

Wherever it happens, flooding isn’t just a matter of how much rain comes down. It’s also about what happens to all that water once it’s on the ground — most critically, in the places people live.

Cities in arid regions often aren’t designed to drain very effectively. In these areas, paved surfaces block rain from seeping into the earth below, forcing it into drainage systems that can easily become overwhelmed.

One recent study of Sharjah , the capital of the third-largest emirate in the U.A.E., found that the city’s rapid growth over the past half-century had made it vulnerable to flooding at far lower levels of rain than before.

Omnia Al Desoukie contributed reporting.

Raymond Zhong reports on climate and environmental issues for The Times. More about Raymond Zhong

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Tourism Performance Report January - February 2024

Performance reports

Thu, March 21, 2024

Dubai welcomed 3.67M overnight visitors in Jan-Feb 2024, with an increase of +18% compared to Jan-Feb 2023.

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Total international visitors

• 3.67 M in Jan-Feb 2024
• 3.10 M in Jan-Feb 2023