Dubai Is A Very Young Tourist Destination Tourism Essay

Dubai Is A Very Young Tourist Destination Tourism look forIntroductionDubai is a in truth(prenominal) young holidaymaker destination which gained popularity lately. Dubai has proved as a very successful destination and managed its thriftiness after its recent crisis in grade 2009. Having exclusive resorts and hotels throughout the city with deserts makes it a unforgettable destination with cherishing get a line it has desserts which make it similar to Las Vegas in America, Dubai was an impossible conceive of which is now an oasis for fun in a very promising surroundings.The backb star for the development of Dubai was the investment make by the immaterial investors which helpered the infrastructure to hell dust and flourish. These developments were very well supported and promoted by transp bent regimen policies. But it is grave to advert that though Dubai was one of the offset printing cities to develop tourism its very ch each(prenominal)enging to sustain it since t hither are neighbouring destinations as well which are striving hard to gain the popularity among the persona. However Dubais development as a destination year after year has been remarkable and impressive.Dubai has been a dessert gem of the shopping center East region. Where the tourists can enjoy sunny beaches with the luxury of one of the finest hotels in the globe combined with the warmth of Arabian hospitality.Product offerDubai is a destination with seven star luxury hotels overlooking the beaches and with superb infrastructure throughout the city. Dubai caters to young tourists and to people who are pull up stakesinging to invest in any kind of business. It serves with excellent tourist amenities and products which are worth investing in. It is one of the seven emirates of UAE where the tourism application has done exception every(prenominal)y well in the recent past years. Dubai is one of the most preferred destinations in the terms of its geographic location. Most of the Middle East and subcontinents of India are just few hours away from Dubai and with ease of accessibility. Also it seduces tourists from European countries making it just 5 hours of flight to Dubai.Dubai is cognise as one of the vanquish places for a short break with wide range of products offering such as hotels and resorts, dining, obtain, partying, sports events and much more(prenominal). Dubai is also know for its dummy islands namely, Palm Jumeirah, Palm Deira, Palm Jabel Ali and The ground. These artificial and unbelieving infrastructures have taken a drastic curve towards the development of tourism industry.Pricing StrategyDubai has made its image at an international level and kept the pace with the increasing grocery store demand and needs effectively. Tourism industry is one of the major contri plainlyors of the follow economy of Dubai. Dubai was at its best in its early 2002 which lasted for 5 to 6 years and faced a global economy crisis in year 2009. However , Dubai is recovering and doing good from last 2 years or so with tremendous ingathering in retailer business, anoint refineries and of course the tourism industry.As give tongue to earlier, Dubai saw its boom time during year 2002 and therefore it had psychological pricing strategy. However after the economical downfall in year 2009, Dubai is now passing through market penet dimensionn pricing strategy so as to attract international investors and tourists back to Dubai.(Hsu, Killion, Brown, Gross, Huang, 2008) Also, keeping in mind the visa formalities of Dubai, that is visa on arrival, can be termed as una equivalentiated strategy. In this setting, Dubai tries to accommodate more and more numbers of immigrants and which in a way helps the regime of Dubai to generate more revenue through visitors.Service conceptDubai has emerged as one of the finest places to visit with ample of attractions from heritage sites, exclusive resorts and hotels overlooking the beach to nota ble landmarks like Burj Al Arab, newly constructed Burj khalifa, the palm, the world, etc. However, Dubai is trying to develop its infrastructure as much as possible and it is coming up with genuine developments which will emphatically be a benefit for the tourism industry. Future developments which would enhance the service concept of Dubai for tourism industry are as followsDubailandDubai sports cityThe worldAl Maktoum International airportGlobal villageCurrent key market communication strategiesIn this world of globalization, countries all around the globe are competing with each former(a) in all aspects. This is where marketing comes into the picture. Today, the importance of marketing has reached to an extreme height where any business or a destination essential have a unique marketing strategy to attract tourists or investors and gain their attention. Dubai has also done its part of it so as to make the world aware of what Dubai is all about and what is it offering to the world.Dubai has currently positioned itself in a rejuvenation stage because of the recent economic downfall in year 2009 and hence it is trying its best to penetrate in the market again and it has been doing exceptionally well since past 2 years.Dubai has introduced various promotions and events which has critical role to attract investors from widely distributed and sell Dubai as a destination through such events. There are few festivals and events which help Dubai for its strategic marketing which are as followsDubai shopping festivalDubai summer surprisesEid in DubaiAlso, Dubai introduces sports activity, entertainment, conferences and exhibitions throughout the year. This breathtaking festivals and events attract people from around 200 countries throughout the world. People visiting Dubai for such events obviously experience something unique and this in a way is personal selling for the destination through its tourists. On the other hand, in this world of modern technology, Dub ai, like other countries have introduced an official website named Definitely Dubai which makes it easier for an individual to explore Dubai at one stop and go. Hence, Dubai has various means through which they market their destination and they are as followsAdvertisementPersonal sellingPublic relationsMain target marketDubai offers ample of attractions and a place which attracts all sorts of target market from different aspects of market segmentation. Following are the main target market for DubaiBusiness travellers Dubai is a hub for investors and lately more and more number of international investors have moody up to Dubai and invested in some or the other kind of business.Airlines and ship crew Dubai enjoys its geographic location and remains one of the major points of halt for all the flights flying from one part to the other part of the world. Hence, accommodating maximum number of airlines and ship crews.Expatriates As said earlier, Dubai has more than 80% of expatriates whi ch means but less than 20% of UAE nationals resides in Dubai.Honeymooners Having had unique destinations with luxurious resorts and hotels, honeymooners are the best target market for the hotels. Hotels like Burj Al Arab and Atlantis are one of the best hotels to mystify in for the honeymooners.Leisure travellers Leisure travellers have lots more to explore Dubai in terms of shopping, activities, sports, entertainment, natural reserves, beaches and parks. High end travellers may enjoy their interference in any 5 star luxury hotels and make their catch a memorable experience.Main challenges facedMain challenge for Dubai was to cope up with the global economic crises which had a huge impact on the infrastructure development as well as the tourism industry. Most of the developments or projects were cancelled or put on hold. Also the political instability in the Middle East region raised an alarm for all the tourists visiting this region ultimately slowing down the flow of visitors to Dubai.However, after the economic crises in year 2009, Dubai has made tremendous come back and it is now coping up with the pace of the market with tourism industry booming at a very high rate.Environmental analysisEnvironmental analysis is nothing but an evaluation of the possible impacts of external environment or forces on the existing strategies or growth of the business or organization. Dubai as a destination would definitely like to provide each and every visitor a memorable and cheerful experience. Hence, government of UAE is responsible for the betterment and safety of its cities and UAE itself as a country. Dubai is determined on the emirates northern coastline. Dubai shares its border with Abu Dhabi in the south, Sharjah in the northeast and Oman in the south east (www.definitelydubai.com). Having such competitive environment, environmental analysis will help Dubai chance on its current position in the market and possible strengths and weaknesses. (Hsu, Killion, Brow n, Gross, Huang, 2008)Environmental analysis will basically include macro environmental examine. Macro environment consists of political, economical, socio-cultural, technological, ecological and legal factors for Dubai as a destination.Marketing Information systemMarketing randomness system (MIS) is all about gathering and storing of data and evaluating them so as to meet the goals and objectives of any organization and for its development. Information could be in various forms, for example, number of tourist, number of hotels, technology development, businesses, revenue earned, etc can be collected. This training is collected by the Department of tourism and commerce marketing, Government of DubaiDubai is one of the increase cities in the UAE. As a destination, it attracts visitors through various means like real estate, travel packages, online auctions, exports, nightclubs, multi-level marketing, job agencies for skilled labours, franchise business, etc. These factors someh ow attract people from worldwide as a tourist or a visitor. This, in a form adds up to the revenue earned by the government in terms of tourism and development.Marketing information system gathers and stores data in the form of statistics and it is up to date with the department of tourism and commerce marketing, Dubai. This will trustedly help Dubai to form its strategy for its continuous and rapid growth in the market. There are certain benefits of having marketing information system which are as followsIt helps to identify and recognize current market trendsHelps in marketing planning and controllingHelps with lots of information which is systematically and properly designedHelps in making right decision at the right time with the facts and information readily availableIt also helps in environmental scanning.Hence, it is always worth having MIS in any kind of business or a destination to treasure its current position in the market and cope up with new market trends.Environment al scanningEnvironmental scanning helps in understanding the context for the preferred future. Environmental scanning refers to macro environment which considers political, economical, socio cultural, ecological, technological and legal factors. It also comprises of industries, companies, clients and competitors. These factors influence the business, industry or a market as a whole. Environmental scanning is a motion of identifying the happenings in and around the business or a destination. Dubai is a unique destination with infinite opportunities. Hence, environmental scanning will help the destination to survive in the market by identifying the opportunities and threat to its market.In this world of globalisation, there is a need to do proper analysis of the surroundings so as to maintain the pace with the world and form a strategy accordingly. The procedure for environmental scanning will be done at international level. Dubai has been growing rapidly since past few years and he nce the government of Dubai or the tourism department needs to be up to date with the happenings in and around Dubai.PESTLE analysisPestle analysis will broadly focus on the political, economical, socio-cultural, technological, ecological and legal aspects of it. This will help Dubai as a destination to plan its strategies for the future development and attract more number of tourists. PESTLE will also help the government of Dubai to know its competitors and the potential threats to its market. (Hsu, Killion, Brown, Gross, Huang, 2008).PoliticalDubai is one of the 7 emirates of UAE and unlike other neighbouring countries it has a stable political history. In the recent years, it has sufficiently developed high-powered legal and regulatory framework. Dubai government and the department of tourism and commerce marketing have contributed a lot in the development of Dubai as tourism destination. However, there are certain impacts of political and legal factors on the destination.One o f the major factors that attract tourists from around the world to Dubai is the entry formalities. The UAE authorities have made it very straightforward for the visitors of the Dubai by introducing a visa on arrival system. Here the tourists do not require prior visa to enter UAE airport, hitherto this ease is only applicable to 39 countries GCC nationals. Hence, this formality is a big plus point for Dubai to attract tourists from all around the world.Government of Dubai has given good orientation course to the people who are interested in doing a business. It has also received recognition for its efforts in creating business opportunities.It has been a good outcome overall and the government of Dubai is still looking forward to bring in new expensive facilities.Foreigners have the right to have the ownership of up to 49% for the businesses that are open up in UAE and up to 100% for the professional businesses (DTCM, 2011a).The government is also looking forward to improve its foreign relations which will certainly add up to the tourism industry in some or the other way.CUsersHemalDesktop3c6e5d0499db540c0bff2b975f7fdbc0_LARGE.pngMacro environment (PESTLE)EconomicalOver the past recent years, Dubai has made a drastic change in its economy by becoming a major hub for the business and investors. Having had a strategic location it serves as a biggest re-exporting centre in the middle-east. Activities such as trade, tourism, transport, businesses, etc has made a huge contribution to the economy of Dubai. However, the major sector which contributes to the economy is crude oil (Govers Go, 2005, p. 77).Dubais gross economy was US $92.11 billion in year 2011.Where in the tourism industry of Dubai made 11% of the total economy.It has been seen that the total revenue generated by the tourism industry was up by 20% in the year 2011 as compared to 2010.Tourism industry made 15,965,011 in year 2011 plot of land in 2010 it was 13,272,330.Dubais trade waste has also been increased over the years, growing from $18 billion in 2007 to $31 in 2011. This indicates the strength of the export sector of economy.The hospitality industry is expecting a real boom in its untainted future that is by year 2015. Targeting around 100,000 rooms for over 15 million visitors.On the other hand, Dubais foreign debt was estimated at approximately US $100.Having looked at all the facts and figures over the past recent years, there seems to be no economical problem in Dubai. In fact, the tourism industry will be one of the major contributors to the Dubais annual economy. Hence, there should be no worries for Dubai as a destination for the international tourists. genialSocial factors comprises of customs, social class, religion, culture and demographic variables such as age, gender, income and education level. (Hsu, Killion, Brown, Gross, Huang, 2008)According to ( DTCM, 2011a)Dubai has a population of 2,065,636 which consists more than 80% of expatriates population .Male Female ratio is 2.2 1It has very low or no crime rate recordEating of pork is a taboo in UAENational speech communication of UAE is ArabicDubai follows Islamic religion, however practice of all religions is allowed in Dubai.Dubai is doing well in terms of education it has only 7% of illiteracy.Dubai is one of the fastest growing cities in the world and the intermediate employment age is from 19 65 and which is expected to grow by 120% by 2016. Hence, this will definitely ebb the illiteracy rate of Dubai. Also, due to friendly nature of Dubai it has made a remarkable growth in the trading business and will continue to attract more and more investors in future.TechnologicalTechnological factor is now one of the important aspects for any destination in the world of globalisation. Dubai has invested hugely in technology and infrastructures in last 20 years or so. It has got ample amount of attractions where the tourists can look forward to and make their visit to Dubai a mem orable experience.Dubai has one major international airport, 2 seaports, specialised free zones, several industrial areas, etc.Dubai has 387 number of operating hotels (Figure 1.1) and 53,828 number of available rooms by the end of year 2011, (DTCM, 2011a).Dubai has worlds 4th tallest hotel named Burj Al Arab, standing 321 meters tall with around 70 floors.Recently established worlds tallest building named Burj Khalifa is 828 meters long in height and more than 160 stories. It holds the following records at international levelTallest building in the worldHighest numbers of stories in the worldTallest service elevators in the worldElevators with the long-run travelling distanceTallest free standing building in the worldFigure 1.1CUsersHemalDesktop1.pngDubai has recently introduced to technologies which are useful for the people travelling throughout the city. Installation of automatic fare system, route display, destination display system, electronic taximeters and complete manageme nt systems has made easy for the tourists to travel without any hesitation or trouble. Dubai government also introduced One Stop Information Centre (OSIC) where an individual can stop over and browse for all the information about Dubai in one go.Moreover, Dubai has done significantly well in its technology and infrastructure department so as to attract more and more number of tourists as well as investors with long lasting experience.EcologicalDubai enjoys with undoubtedly one of the best locations on the planet earth. Having had exceptionally well looking beaches throughout the coast, Dubai has many another(prenominal) more things to look which is artificial. Dubai has more than 3 artificial islands, namely, Palm Jebel Ali, Palm Jumeirah, Palm Deira and The world (which appears as a world map) from north to the south. Dubai has been voted with the cleanest water with Abu Dhabi and Muscat. Also, certain UAE cities like Dubai, Abu Dhabi and Sharjah have been rated the best cities to live, (Emirates news, 2012). intelligentUAEs seven emirates have their own government with proper municipality and authorities. There are laws where each and every individual moldiness follow and it has been noticed that in a recent few years expatriates have failed to do it (Emirates News, 2012). There are few laws you should never break, for example clothe for womens should be conservative, no transparent clothing are allowed where as mens should cover their chest.There are few customs law where an individual cannot bring certain materials and are banned in UAE. For example, pornographic materials, drugs and anti Islamic materials.Consumption of alcohol is banned in public places but can be consumed in restaurants and bar and in hotels. Drink and driving is a big crime and anybody found guilty will be jailed.Procedure for environmental scanning germane(predicate) areas for scanningMediumResponsibility ofReporting toTimeCompetitorsTouristsHotels, DTCM, Government of DubaiInternet website of DTCMAnnuallyInvestorsHotels, business or organizationsDTCM or Government of DubaiWeeklyHotels and resortsManagers of the hotel, frontline staffStakeholders, prevalent manager, Head of the departmentDailyNewspapersHotels, businesses, entrepreneursJournalists, Newspaper office, mediaDailyCustomersHotels and resorts staff of the hotelsManagers, Head of the departmentDailyInternetStaff and managers of hotels and resortsDTCM, government of DubaiWeeklyTouristStaff and managers of hotelDTCM, Government of DubaiDailyEconomicalGDP per capitaHotels, Businesses, entrepreneursGovernment of DubaiAnnuallyRevenueHotels, entrepreneurs, investorsDTCM, Government of DubaiAnnuallyCurrency exchange ratesBanks, hotelsGovernment of DubaiDailyLegalMinimum wage lawGovernment of DubaiHuman resources departmentMonthlyHospitality magazines/ NewspaperHotels and businesses, entrepreneursMedia, Government of Dubai, Magazines and newspaper officeMonthlyTechnological cornerstone/ TechnologyGovernment of Dubai, Tourists, LocalsDailySituation analysisDubai has been exploring significantly in all aspects so as to attract more and more number of visitors in recent few years. However it has some strengths, weaknesses, opportunities and threats. Strength and weaknesses are internal whereas opportunities and threats are external (Hsu, Killion, Brown, Gross, Huang, 2008).Strengths Oil companies, booming economy, politically neutral, unique beauty and hotels all around Dubai, safe and clean environment.Weaknesses Negative image of the Middle East, lack of natural resources, only around 20% of UAE nationality population.Opportunities Job opportunities for immigrants, increase in oil prices, increase in foreign investors, and development of MICE.Threats Strong competitors are within the nation for example, Abu Dhabi, Sharjah and Qatar also international competitors such as Singapore and Hong Kong, limited media coverage.Hence, depending on current situation analysis Dubai is going through a booming phase of economy even after an economic downfall in year 2009. Identified are certain strengths and weaknesses with some opportunities and minimal threats where in Dubai can grow drastically as a tourism destination in its mere future. The economy from hotel industry as said earlier and in figure 1.1 shows an impressive growth of 20% in year 2011 as compared to year 2010. definite factors that will bring in more international investors and tourists are new developments in infrastructure and technology. Dubai has emerged as one of the rapid growing cities and that in like manner in a quick time span and hence it can be concluded that Dubai is becoming more popular internationally and also a best place to live in with extra ordinary attractions.Target market analysisOne of the major essences of marketing is customer oriented. Target marketing is the process of identifying and focusing marketing activities to those customers whose wants and needs can be satisfied by you th e best. By target market process you have the potential to convert these customers as your guests of future providing you with hard cash and investments. An effective target marketing analysis will help you to arrange your resources for the market which would provide high return on marketing investments. Hence target market analysis is a very important and crucial part in the development and sustainability of any destination. It is important to note that target market analysis is always an ongoing process, it has to be done in a periodically.Dubai is already a developed destination in the Middle East region and has the competitive edge of being the first-mover over years. Dubai was very well successful to make it on the top of the worlds tourism destination map. The hotel market in Dubai has grown significantly over years which were backed up by infrastructure developments and huge amount of domestic and international investors.However with the pedigree of the economic crisis emerg ing globally it was very natural that it would hit the major market source. Due to the unwelcomed situation grasping the region for quite a while Dubai not only needs but also was forced to rearrange the procedures and strategies of the hotel industry in the city which was suffering from a downfall in the tenancy rates. Dubais Department of Tourism and Commerce Marketing (DTCM, 2011b) have been trying very hard to position Dubai as not only a top tourist destination but also their aim is to develop it as a commercial hub.While conducting target marketing analysis it is important to conduct a competitive analysis with other destinations in the region. This comparison must include factors which attract customers than the competitors it might include climate, scenery, infrastructure etc.Market SegmentationA market segment is a process of identifying potential customers by one or more characteristics. This is done to better understand the customer needs .Dubai as a destination has class ified its customers on the basic of two categories as geographic and psychographic.Geographic segmentationIn geographic segmentation the market is change integrity into several geographical borders according to region, population, city size and climate. This is done to concentrate on particular consumer base since consumer behaviour varies across geographic territories. Hence it is important to consider geographic factors to target and attract the market specifically.Top 5 source market for DubaiThe above pie chart describes the number of visitors on the basis of geographic area and the top source markets for Dubai. From the pie chart it is outstanding that Dubai enjoys a high number of visitors from the South Asia region. It also has many visitors from AGCC region which is Arab Gulf country council .AGCC includes 6 countries which are Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and the United Arab Emirates. The least amount of visitors was from CIS which is common wealth of Indep endent States. South Asia is one of the most important segments for Dubai, since Asia has the largest piece of share Dubai has a very good opportunity to take over this target market and spread its roots even deeper.The above data is about the visitors coming to Dubai however it is also important to keep a track of the spending power of the source market (DTCM, 2011a).CUsersFavYAppDataRoamingTencentUsers473793741QQWinTempRichOleXGNKGK3J6L7$XUTRG.jpgAccording to the data above it is prominent that the tourist from the United Kingdom, United States and Saudi Arabia are by far the biggest spending geographic source markets in Dubai for their accommodation which accumulates to $124.9 millon, $82.1 million, and $70.5 million. This is equal to 63.2 percent of the stallion category.Among the high spending countries that spend $10 million or more annually, Japan, Italy and France experienced negative growth of 16.6 percent, 7.3 percent and 1.2 percent respectively.However if we take an ave rage spending on the accommodation sector the high spending countries are Russia ($683.54), Switzerland ($629.81) and Saudi Arabia ($551.40).The entire figures are retrieved from (DTCM, 2011a).Pshychographic segmentationPshychographic segmentation is a process or tool to group the people according to their activities, interests, lifestyle and opinion. Dubai is a very vibrant city hence it is very important to classify visitors based on their activities to better understand their needs and to develop the infrastructure demand. Henceforth the visitors visiting Dubai has been classified into the following categories-Pshychographic SegmentsCharacteristicsBusiness Visitors bank check upto 5 dayshave visited Dubai on a regular basisMake their own bookings rather than tour operatorsLook for safety, climate and value for moneyAirline and Ship CrewStay upto one to three daysHave visited Dubai before and travel regularlyHave corporate arrangements for accommodation with the hotels.Stay in 2 s tar to 4 star hotels and some serviced apartments.Leisure VisitorsStay for 4 to 10 daysargon visiting Dubai for the first timeMake their own arrangementsPrefer to stay at 5 star hotels while minor percent stay with friends and familyCruise PassengersStay for two to three daysMostly visiting Dubai for the first timeAccommodation is usually a part of the cruise packageVisit neighbouring destinations like Oman, Bahrain and Egypt.Conference VisitorsStay for eight to fourteen daysAre visiting Dubai on regular intervalsMake their own arrangementsMostly stay at 5 or 4 star hotelsUse Taxi too much as mode of transportationWorking ExpatriatesStay for more than a yearAre usually visiting Dubai for the first timeHave arrangements for their accommodation but not in hotelsContribute to the Culture and economy.The above diagram shows the percentage of physcographic segments in Dubai from all the visitors arriving to Dubai. It is important to note that overall, passenger trading at Dubai Internat ional Airport the worlds fourth busiest airport rose 15 percent in 2010 as the global economy recovered. It was up 8.9 percent in the first half of 2011 despite high fuel costs and increased economic uncertainty in Europe and the US.Hotels in the UAE trade and tourism hub Dubai, known for the worlds tallest tower, reported a modest occupancy increase of 0.7 percent to 69.9 percent in May from the previous year.Potential markets profilesFrom the facts and figures about the visitors coming to Dubai we can identify and describe the potential target markets for Dubai. After analysis of the data we have identified 3 major new markets for Dubai (DTCM, 2011a). The details of those nations are stated as followsChinaIn 2010 the visitors from china were found spending more in the country almost 155.3 percent more than they fagged in 2009, according to visavue data.The major growth category in some of the segments included quick service restaurant category which inclined to a 361. Percent j ump contributing to 31,519 spent in 2010.one of the other segment which was a growth was departmental store spending which went up by 210.8 Percent to $25 million.CUsersFavYDesktopUntitled.jpg