Describe about the Tourism Management for UAEs Tourism Sector.
The present paper is wishing to establish an in depth evaluation of the topic of UAE’s tourism sector. With the support of technical advancement and enriched natural resources and continuous development in the aviation section, UAE impresses the world with its excellent hospitality and leisure attractions. For example, Dubai, the tourist hub of the nation has welcome near about 15 million tourists in the year 2010.
Hence, the present study is attempting to acquire a coherent understanding with the help of secondary data. The paper will be accompanied by thematic analysis for which the assignment will rely on reviewing relevant literary papers. Additionally, significant variables related to the impact of tourism business on the economic aspect of UAE will be discussed with utmost priority.
In this respect, it is necessary to note that the research paper is aiming to obtain impressive amount of vital information about the impact of UAE’s tourism industry on the country’s current GDP and employment. Therefore, it is to say that the assignment will try to determine whether this particular industry is leading the nation in the path of internationalization or not.
According to Arif et al. (2013), the tourism sector of UAE should be considered as the potential determinant of the nation’s current GDP rate, which will supposedly mount up to 8.5% this year. Moreover, in the year 2013 the individual contribution of the hospitality and tourism industry upon the nation’s entire GDP has been about Dh56.5. On the other hand, as per Di Foggia and Lazzarotti (2013), travel and tourism is among one of those sectors which has undergone rapid growth in UAE and the result directly reflects through the employment growth. In the year 2014, the travel and tourism industry single handedly generated near about 307,000 jobs, which include occupations for travel agency, transportation service and jobs in various hotels. Most fortunately, it is being expected that by the year 2025, the tourism sector will be responsible for giving 420,000 jobs to the country. On the other hand, it is significant to denote that in the respect that the travel and tourism sector of UAE is hugely dependant on the foreign direct investment.
As stated by Hatemi-J (2016), the fact that the tourism industry is having success in gaining support from the foreign visitors is evident in the fact that in the year 2014, when the travel and tourism industry generated over AED86.3bn in the visitor export. As per Hatemi-J (2016), the tourism industry of UAE is considered as a strategy the nation’s government for maintaining the foreign cash flow in the domain. It can be said that the strategy is running fruitfully considering the increasing number of international tourists. The government of UAE to supplies an impressive amount of investment for the advancement of the infrastructure facility of the tourism industry.
Nevertheless, it should be acknowledged that the country’s tourism industry is acting as a strategic position in terms of geography, economy and culture between the west and the east zone of the world. As opined by Di Foggia and Lazzarotti (2013), the nation is being one of the leading tourism destinations in the entire region since the unification of seven in UAE emirates. From about 42 years ago, the country started strengthening its aviation sector in terms of tourism by creating Airways of Emirates and Etihad. However, as argued by Khan (2014), the rampant improvement in the tourism industry has been influenced by the establishment of metro station and shopping malls.
Based on Khan (2014), as part of the bright outcome of the prosperous tourism business of UAE, the country has developed a high range of living. Probably, the most significant determinant of UAE’s present success in the field of travel and tourism is the government’s decision to maintain a zero tax policy. On the other hand, the council of Gulf Corporation celebrates the place for being the safest territory. For example, most of the time tourist comes to the place to visit the Mosques for understanding the cultural history and ethnicity of the place. Most importantly, the entire aspect of tourism in UAE has attracted several international brands due to which lifestyle and fashion statement of the country have also improvised.
However, based on Mansfeld and Winckler (2015), tourism has opened up the door for worldwide shopping festival that has considerable hosted more than 50 million tourists from all over the world. Therefore, it can be perceived that the aspect of tourism is acting as a asset for the nation in terms of every aspect.
Framework of the study
From the literature review above, two particular variables can be identified, which could be evaluated and measured fruitfully. The literature review has indicated that the tourism and travel sector of UAE has strongly determined the country’s economic position in the current scenario. Therefore, it is easy to perceive that the dependable variable would be the economic growth of UAE, whereas the independent variable would be the impact of UAE’s tourism. Hence, for measuring the influence of the travel and tourism sector on UAE’s economy, the paper is attempting to measure the variables through thematic analysis.
Model and data
As discussed above, to evaluate the variables successful along with acquiring a fruitful result, relevant data will be collected through secondary research method. The territory of travel and tourism is wide, thus it would not be possible to undertake a primary analytical method. Hence, the research paper would review and take help from relevant journal articles, books and online newspaper articles related to each of the individual variables.
Results and interpretations
From the secondary research method, it has been understood that the tourism industry has been playing the role of a determining factor for the economic growth. The following statistical figures are the active evidences of the fact –
Figure 1: Growth of UAE’s food and beverage industry
(Source: Telfer and Sharpley 2015)
Figure 2: GDP composition
(Source: Telfer and Sharpley 2015)
The first statistical figure is indicative of the fact that the food and beverage industry of UAE has gradually increased from the year 2014 and the figure implicates a lucrative growth of this sector in the years 2017 – 2019. However, the second figure indicates relatively less impressive data as it displays that the contribution of tourism sector on UAE’s GDP is comparatively low than the energy and real estate sector (Riasi and Pourmiri 2016).
From the entire research paper, it can be established that the impact of the tourism industry on the economy of UAE is positive as an inspiring amount of contribution of this industry is reflected through the GDP. On the other hand, increasing employment rate and cultural diversity should also be regarded as two remarkable results of the advancement of this industry. However, it is still unfortunate as per one of the statistical figures that tourism industry’s contribution is less accomplishable in comparison with the power and real estate business.
Arif, M., Gupta, A. and Williams, A., 2013. Customer service in the aviation industry–An exploratory analysis of UAE airports. Journal of Air Transport Management, 32, pp.1-7.
Di Foggia, G. and Lazzarotti, V., 2013. Business implications of local development policies: The case of Dubai and the travel industry. Theoretical and empirical researches in urban management, 8(1), p.78.
Hatemi-J, A., 2016. On the tourism-led growth hypothesis in the UAE: a bootstrap approach with leveraged adjustments. Applied Economics Letters, 23(6), pp.424-427.
Khan, S.M., 2014. UAE's Travel & Tourism Sector and its Multiplier Socio-Economic Effects. Defence Journal, 18(4), p.64.
Mansfeld, Y. and Winckler, O., 2015. Can this be spring? Assessing the impact of the “Arab Spring” on the Arab tourism industry. Turizam: znanstveno-stru?ni ?asopis, 63(2), pp.205-223.
Riasi, A. and Pourmiri, S., 2016. Examples of Unsustainable Tourism in Middle East. Environmental Management and Sustainable Development, 5(1), pp.69-85.
Telfer, D.J. and Sharpley, R., 2015. Tourism and development in the developing world. Routledge.
Zaidan, E., Taillon, J. and Lee, S., 2016. Societal implications of UAE tourism development. Anatolia, 27(4), pp.543-545.