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Sheikh Mohammed merges Dubai’s economy and tourism departments

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Helal Al Marri has been named as director general of Dubai’s Department of Economy and Tourism

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Two key government departments, Dubai Economy and Dubai Tourism, will now be merged under a single entity called Dubai’s Department of Economy and Tourism.

A decision to this effect was issued on Saturday by Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai who is also the Vice President and Prime Minister of the UAE.

Helal Al Marri, who was recently appointed as the head of the new board of directors of Dubai Financial Market, has now been named as director general of the newly formed department too.

Read: New board of directors announced for Dubai Financial Market

The Department of Economy and Tourism is tasked with meeting seven targets to strengthen the emirate’s position in tourism and economy. These include increasing the added value of the industrial sector by 150 per cent in the next five years, expanding export markets for local products by 50 per cent and increasing the number of tourists coming to Dubai by 40 per cent to 25 million visitors by 2025.

The new entity is also tasked with making Dubai one of the top five global cities in the main economic indicators, attracting 100,000 companies in three years as well as 400 global economic events annually by 2025.

Furthermore, it is also tasked with encouraging private and family-owned businesses to get listed on Dubai bourse, according to state run news agency WAM.

In his capacity as Ruler of #Dubai , @HHShkMohd issues a decision to merge @Dubai_DED and @dubaitourism into one entity under the name ‘Dubai’s Department of Economy and Tourism’. https://t.co/9OPAqmAo5G — Dubai Media Office (@DXBMediaOffice) November 6, 2021

The Department of Economy and Tourism will work to attracting foreign investments, increase exports, support SMEs, and develop plans for Dubai’s new economic sectors.

The new structure will support decision makers in developing policies and assessing the strategic performance of the economic sector. The goal of the restructuring is said to create a government model that is flexible, efficient and able to take rapid decisions.

The new structure will also reportedly help facilitate and reduce procedures related to the issuance of trade and tourism licenses to promote Dubai’s competitiveness, and achieve the optimum usage of the human and financial capital.

“The newly formed department seeks to support the economic and tourism transformations taking place in the emirate. It will adopt the same competitiveness and efficiency of the private sector and work together with it on various development projects,” said Sheikh Mohammed.

“Dubai’s economy has witnessed different phases of development throughout its history, which has helped shape the city’s current status as a model for economic development and a preferred destination for tourism. Today, our ambitions have grown bigger and our priorities have changed. Raising our global competitiveness requires new ways of thinking.”

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Dubai merges tourism and economy departments

  • Travel & Tourism

Helal Saeed Al Marri will head the new merged entity

Dubai skyline, Burj Khalifa, Downtown Dubai

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Dubai: In his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum, has issued a decision to merge Dubai Economy and Dubai Tourism into one entity under the name ‘Dubai’s Department of Economy and Tourism’.

His Highness also issued a decision appointing Helal Al Marri as Director General of the newly formed Department.

The move is part of a plan approved by His Highness that seeks to develop government work in Dubai and enhance its efficiency and resilience in order to keep pace with rapid changes, while ensuring the competitiveness of the business and tourism sectors in Dubai.

“The newly formed Department seeks to support the economic and tourism transformations taking place in the emirate. It will adopt the same competitiveness and efficiency of the private sector and work together with it on various development projects,” said Sheikh Mohammed

“Dubai’s economy has witnessed different phases of development throughout its history, which has helped shape the city’s current status as a model for economic development and a preferred destination for tourism. Today, our ambitions have grown bigger and our priorities have changed. Raising our global competitiveness requires new ways of thinking.” 

Seven targets

The Department is tasked with meeting seven targets to further strengthen Dubai’s leading position in tourism and economy and make it the world’s best city to live in and work, His Highness said. These include increasing the added value of the industrial sector by 150 per cent in the next five years, expanding export markets for local products by 50 per cent and increasing the number of tourists coming to Dubai by 40 per cent to 25 million visitors by 2025.

The newly launched entity is also tasked with making Dubai one of the top five global cities in the main economic indicators, attracting 100,000 companies in three years as well as 400 global economic events annually by 2025. The new entity is also tasked with encouraging private and family-owned businesses to get listed on Dubai bourse.

“Our message to the Department’s team is that Dubai today is different than yesterday. The future of Dubai will depend on your performance, ideas and efforts,” said Sheikh Mohammed.

The Department of Economy and Tourism will also work to promote Dubai’s competitiveness in attracting foreign investments, increase exports, support SMEs, and develop new plans for Dubai’s new economic sectors.

The new structure will support decision makers in developing policies and assessing the strategic performance of the economic sector. The ultimate goal of the restructuring is to achieve the vision of Sheikh Mohammed bin Rashid to create a government model that is flexible, efficient and rapid in taking decisions. The new structure will also help facilitate and reduce procedures related to the issuance of trade and tourism licenses to further promote Dubai’s competitiveness, and achieve the optimum usage of the human and financial capital.

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Dubai gets new corporations under Department of Economy and Tourism to boost growth

Subsidiaries to target drivers such as business attractiveness, ease of doing business, consumer protection and sectoral governance.

Business activity in the Dubai's non-oil private sector economy remained strong in December. Pawan Singh / The National

Business activity in the Dubai's non-oil private sector economy remained strong in December. Pawan Singh / The National

Alkesh Sharma author image

Sheikh Mohammed bin Rashid , Vice President and Ruler of Dubai, issued laws to establish three new subsidiaries of the emirate’s Department of Economy and Tourism.

The new subsidiaries include the Dubai Corporation for Consumer Protection and Fair Trade, the Dubai Business Licence Corporation (DBLC) and the Dubai Economic Development Corporation (DEDC).

They aim to boost various economic growth drivers such as business attractiveness, development initiatives, ease of doing business, consumer protection and sectoral governance, Dubai Government Media Office said on Wednesday.

We launched 3 new subsidiaries of @DubaiDET - Dubai Economic Development Corporation, Dubai Business License Corporation & Dubai Corporation for Consumer Protection & Fair Trade. Aligned with D33 agenda, the move is aimed at creating the world’s best business environment in Dubai pic.twitter.com/wLYwGbcxrk — Hamdan bin Mohammed (@HamdanMohammed) February 8, 2023

They will also back DET’s mandate of supporting the goals of the Dubai Economic Agenda D33 that was announced last month. It intends to double the size of the emirate’s economy and consolidate its position as one of the world’s top three cities.

“We constantly seek to enhance the supportive framework needed to enhance growth, economic value and innovation in Dubai,” Sheikh Hamdan bin Mohammed , Crown Prince of Dubai, said.

“We are working to raise Dubai’s status as a preferred destination for global companies, investment and talent by investing in human development and advanced technology, raising the city’s global competitiveness and innovation capabilities, reinforcing its knowledge-based economy and building on the advantages gained from the city’s strategic location and advanced infrastructure.”

The newly formed organisations will work together to enhance sustainable economic growth and Dubai’s attractiveness as a global fair-trade destination.

They will seek to generate new avenues for “growth, development and innovation, working closely with key governmental and private sector partners”, Helal Al Marri, DET’s director general, said.

“Based on a common vision for Dubai’s economic and social progress in the coming decade and beyond, they will set clear priorities and enabling levers to integrate new generations of Emiratis into the private sector and make Dubai a hub for skilled workers and a focal point for global multinational companies, national SMEs, trade, manufacturing and the new economy,” he said.

DEDC’s goals include enhancing Dubai’s economic competitiveness, implementing economic development plans, supporting diversification and sustainability of the emirate’s economy, attracting foreign investment and global talent in vital sectors, strengthening Dubai’s position as a global destination for investments and entrepreneurship in the digital economy, and establishing projects focused on advancing innovation, artificial intelligence and technology.

While DBLC aims to strengthen the emirate’s position as a global commercial hub and create an environment for attracting increased investment in various sectors. It will also streamline licensing procedures for business establishments.

The Dubai Corporation for Consumer Protection and Fair Trade will work towards creating a conducive environment for fair trade and competition. It will boost economic stability by ensuring consumer protection and competitiveness of the business sector, the statement said.

Business activity in Dubai's non-oil private sector economy remained strong in December, boosted by a sharp increase in output as new orders climbed amid rising customer demand at the end of last year.

The emirate's seasonally adjusted S&P Global purchasing managers' index reading in December edged higher to 55.2, from 54.9 in November, firmly above the neutral 50 mark separating expansion from contraction.

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Tourism spearheads dubai economic recovery, sector’s gdp contribution is expected to have nearly doubled this year from 2021 to 36.1%.

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A show at Dubai's Global Village. In 2023, the city welcomed 17.15 million overnight visitors. — Supplied photo

Published: Thu 28 Mar 2024, 8:09 PM

Last updated: Thu 28 Mar 2024, 8:29 PM

Despite global conflicts and recent regional unrest, Dubai’s economy, driven by key sectors, remained steadfast in its recovery. The performance of the tourism sector reflects as much, a new report showed on Thursday.

According to Cavendish Maxwell’s Dubai’s Hospitality Sector Market Performance, in 2023, the city welcomed 17.15 million overnight visitors, surpassing its previous high of 16.73 million in 2019 and the 14.36 million recorded in 2022. Moreover, the tourism sector’s GDP contribution is expected to have nearly doubled this year from 2021 to 36.1 per cent, and is forecasted to reach 2019 levels once again, by 2024. To continue driving the upward trajectory of tourism in the country, the UAE has set ambitious goals in its National Tourism Strategy 2031, aiming to position itself as a top global destination by 2031.

The strategy aims to boost the tourism sector’s contribution to GDP by Dh450 billion, attract investments worth Dh100 billion, and welcome 40 million hotel guests annually by 2031. It also naturally plays into the Dubai Economic Agenda – D33.

In early 2023, the Dubai government unveiled its D33 Economic Agenda, with the goal of doubling the city’s economy within the next decade and solidifying its position among the top three global cities for travel and business. The tools underpinning this initiative are increasing foreign trade and foreign direct investment.

Dubai Tourism’s recent performance and future ambitions have been recognised globally, with the city being ranked as the No. 1 global destination in the TripAdvisor Travellers’ Choice Awards 2024 for the third consecutive year.

Additionally, Dubai has been ranked first regionally and sixth globally as the best city in the world in the World’s Best Cities Report 2024. “These accolades underscore Dubai’s commitment to tourism excellence and its status as a top global destination. The growth recorded by Dubai Tourism in 2023 has certainly played an essential role in giving the city’s hospitality and real estate sectors a solid boost,” the report said.

Dubai’s airports: continued dominance

All air traffic in and out of Dubai is managed by two international airports: Dubai International Airport (DXB) and Al Maktoum International Airport (DWC). In 2023, DXB surpassed pre-pandemic levels of passenger traffic, handling 86.9 million passengers. Forecasts suggest that by the end of 2024, this number could reach an estimated 88.8 million, nearing the record high of 89.1 million set in 2018.

Dubai’s appeal as a tourist destination has been steadily increasing. In 2022, the city welcomed 14.36 million international overnight visitors, marking a 97 per cent increase from 2021 and reaching 86 per cent of pre-pandemic levels. This upward trend continued into 2023, with 17.15 million visitors, a 19.4 per cent year-on-year increase, data showed.

In Q3 2023, India remained the largest source market for overnight visitors in Dubai, accounting for 14 per cent of the total, followed by Saudi Arabia, the UK, and Russia, each at 7 per cent.

Among the top ten source markets, China saw a 304.4 per cent year-on-year increase, followed by Russia at 77.5 per cent and Germany at 49.6 per cent. Notably, Saudi Arabia and Oman experienced drops in visitor numbers by 5.6 per cent and 24.9 per cent, respectively.

Keeping up with the rise in tourism levels in Dubai, the hospitality industry has successfully adjusted supply to cater to increased demand.

By the first half of 2023, the total number of hospitality establishments in Dubai had risen to 813, with 148,711 keys. Towards the end of the year, the total number of establishments stood at 820, with 149,685 keys ready to welcome guests.

“Our estimates suggest that 2024 will see the opening of 31 new hotels in Dubai, while 2025 is expected to add 16 new hotels to the mix. This translates to a cumulative total of 851 by the end of 2024 and 867 by the end of 2025,” Cavendish Maxwell analysts wrote.

On the whole, the Dubai Market made a clear recovery in terms of top-line performance with an average growth of 6.6 per cent in RevPAR compared to 2022 figures. All segments achieved an increase year-on-year with the Upscale sector experiencing the largest average growth of around 13 per cent in Revenue Per Available Room (RevPAR).

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  • TTJ Spotlight

Dubai Department of Economy and Tourism’s Key Focus for 2023

Bader Ali Habib, Head, Region-South Asia, Dubai Department of Economy and Tourism

The Dubai Department of Economy and Tourism is focusing on enhancing the customer experience and leveraging word-of-mouth to attract visitors to the region. In an interview with TTJ, Bader Ali Habib, Head, Region-South Asia, Dubai Department of Economy and Tourism, shared insights on Dubai’s strategy for the India market, including organising regular partner meetings and a series of workshops to increase awareness around tourism in Dubai. The department is also exploring opportunities to attract visitors through stopovers and layovers, and is committed to providing a memorable travel experience for post-pandemic travellers.

– Vartik Sethi

The Dubai Department of Economy and Tourism is capitalising on the region’s world-class facilities and tourist attractions to fuel its strategies and attract visitors from all over the world. With a renewed focus on enhancing the customer experience and leveraging the power of word-of-mouth, the department is well-prepared to achieve its goals.

In an interview with Travel Trade Journal, Bader Ali Habib, Head, Region- South Asia, Dubai Department of Economy and Tourism, shared insights on Dubai’s key focus for 2023 in relation to the India market. Habib emphasised the importance of organising regular partner meetings to enhance communication and refine the department’s strategy with the Indian trade. To this end, the department is planning a series of one-of-a-kind workshops aimed at increasing awareness about tourism in Dubai. These tactical workshops will primarily focus on various aspects of Dubai’s attractions and increasing visitor numbers in the region.

One of the key strategies of the department includes leveraging the power of stopovers and layovers in Dubai as they open a wide market to attract visitors. “Attracting these visitors by providing them with added value is a promising area. We are very sure that these visitors will definitely step into the city, and spend a night or two in Dubai,” says Habib. The department is also keen on exploring India’s tier 2 and tier 3 markets and realises the immensely high potential in these cities.

According to customer data, post-pandemic travellers are showing a heightened awareness of their destinations. To meet the demands of this discerning audience, the department is fully committed to providing a memorable travel experience to travellers of all types, with varying travel aspirations and goals. With the increasing popularity of Dubai as both a travel and work destination, the tourism segment is ripe with opportunities.

The merger with the Department of Economy is focused on creating a welcoming environment for visitors and foreign residents, ensuring their satisfaction and contentment and leveraging the power of positive word-of-mouth. In addition, the Dubai Department of Economy is eager to continue some of their successful initiatives from previous years, such as the Dubai Expo, which has garnered global acclaim and cemented Dubai’s status as a premier destination.

Bader Ali Habib, Head, Region-South Asia, Dubai Department of Economy and Tourism

Dubai’s initiatives towards sustainability have been stellar. The city of Dubai is built on a sustainable, self-sufficient model, and the same continues to be a showcase point in all the expos. The offices in the city use a fully recyclable model, setting an example. In fact, the Dubai government has gone paperless in the last two years! Showcasing this sense of responsibility is sure to go a long way in promoting Dubai as a favourabe tourist destination.

The city of Dubai has made impressive strides in its recovery from the pandemic, having already achieved 97 per cent of its pre-pandemic levels (2019-2020) and showing remarkable growth every day. India remains the top market for the city, with safety, world-class infrastructure, and internal tourism contributing to its enduring appeal.

Dubai continues to attract outbound travellers from various countries, particularly India, who are drawn to the city’s many attractions and offerings. The city’s exceptional leaders have significantly contributed to the region’s stronghold on the world. Habib also shared, “The department is also looking at creating Dubai as a wedding destination, and to put together necessary logistics to host destination weddings in Dubai. Local planners, exceptional food menus, and scenic beauty would be the stepping stones towards building the wedding segment in the country.”

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Tourism Spearheads Dubai Economic Recovery

Tourism Spearheads Dubai Economic Recovery

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According to Cavendish Maxwell's Dubai's Hospitality Sector Market Performance, in 2023, the city welcomed 17.15 million overnight visitors, surpassing its previous high of 16.73 million in 2019 and the 14.36 million recorded in 2022. Moreover, the tourism sector's GDP contribution is expected to have nearly doubled this year from 2021 to 36.1 per cent, and is forecasted to reach 2019 levels once again, by 2024. To continue driving the upward trajectory of tourism in the country, the UAE has set ambitious goals in its National Tourism Strategy 2031, aiming to position itself as a top global destination by 2031.

The strategy aims to boost the tourism sector's contribution to GDP by Dh450 billion, attract investments worth Dh100 billion, and welcome 40 million hotel guests annually by 2031. It also naturally plays into the Dubai Economic Agenda – D33.

In early 2023, the Dubai government unveiled its D33 Economic Agenda, with the goal of doubling the city's economy within the next decade and solidifying its position among the top three global cities for travel and business. The tools underpinning this initiative are increasing foreign trade and foreign direct investment.

Dubai Tourism's recent performance and future ambitions have been recognised globally, with the city being ranked as the No. 1 global destination in the TripAdvisor Travellers' Choice Awards 2024 for the third consecutive year.

Additionally, Dubai has been ranked first regionally and sixth globally as the best city in the world in the World's Best Cities Report 2024.“These accolades underscore Dubai's commitment to tourism excellence and its status as a top global destination. The growth recorded by Dubai Tourism in 2023 has certainly played an essential role in giving the city's hospitality and real estate sectors a solid boost,” the report said.

Dubai's airports: continued dominance

All air traffic in and out of Dubai is managed by two international airports: Dubai International Airport (DXB) and Al Maktoum International Airport (DWC). In 2023, DXB surpassed pre-pandemic levels of passenger traffic, handling 86.9 million passengers. Forecasts suggest that by the end of 2024, this number could reach an estimated 88.8 million, nearing the record high of 89.1 million set in 2018.

Dubai's appeal as a tourist destination has been steadily increasing. In 2022, the city welcomed 14.36 million international overnight visitors, marking a 97 per cent increase from 2021 and reaching 86 per cent of pre-pandemic levels. This upward trend continued into 2023, with 17.15 million visitors, a 19.4 per cent year-on-year increase, data showed.

In Q3 2023, India remained the largest source market for overnight visitors in Dubai, accounting for 14 per cent of the total, followed by Saudi Arabia, the UK, and Russia, each at 7 per cent.

Among the top ten source markets, China saw a 304.4 per cent year-on-year increase, followed by Russia at 77.5 per cent and Germany at 49.6 per cent. Notably, Saudi Arabia and Oman experienced drops in visitor numbers by 5.6 per cent and 24.9 per cent, respectively.

Keeping up with the rise in tourism levels in Dubai, the hospitality industry has successfully adjusted supply to cater to increased demand.

By the first half of 2023, the total number of hospitality establishments in Dubai had risen to 813, with 148,711 keys. Towards the end of the year, the total number of establishments stood at 820, with 149,685 keys ready to welcome guests.

“Our estimates suggest that 2024 will see the opening of 31 new hotels in Dubai, while 2025 is expected to add 16 new hotels to the mix. This translates to a cumulative total of 851 by the end of 2024 and 867 by the end of 2025,” Cavendish Maxwell analysts wrote.

On the whole, the Dubai Market made a clear recovery in terms of top-line performance with an average growth of 6.6 per cent in RevPAR compared to 2022 figures. All segments achieved an increase year-on-year with the Upscale sector experiencing the largest average growth of around 13 per cent in Revenue Per Available Room (RevPAR).

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