The Middle East Tourism

On November 10, the Mein Schiff 2, an ocean liner owned and operated by Germany-based TUI Cruises, docked at Bahrain’s Khalifa Bin Salman Port (KBSP), marking the opening of the new cruise tourism season. Government officials and companies in the tourism sector are hoping for a much-improved year, following the difficulties experienced through the 2011/12 season.

Tourism is cementing its position as one of the leaders of Dubai’s economic recovery from the global recession, as a burgeoning holiday trade leads to growing numbers of tourist arrivals that help to fill the new hotels. Lingering uncertainty in the wider market, however, could give pause to rapid hotel development.

Ras Al Khaimah’s (RAK’s) tourism sector continues to exceed expectations, with visitor arrivals well up on forecasts and overseas investment flowing in. However, the emirate faces stiff competition in a crowded market to develop brand recognition.

With Abu Dhabi having invested heavily in building new attractions to draw in visitors, tourism officials are now busy promoting the emirate in a number of other markets, such as China and Saudi Arabia. Their efforts appear to be paying off, with a rise in the number of hotel guests coming from key source markets during the first half of 2012.

The number of international arrivals to Bahrain surged in mid-August, as visitors headed to the Gulf country to celebrate the post-Ramadan Eid holidays. The tourism sector appears to be more generally looking up after a challenging 2011, with its direct contribution to GDP projected to grow by 3.7% per year until 2022, according to the World Travel & Tourism Council. Recent investor activity is largely in line with these expectations, with a number of new hotels set to open in the coming years.

The emirate of Ajman is looking to broaden its tourism horizons, investing in new upmarket resorts and facilities while also hoping to attract a greater slice of the UAE’s business and conference trade. It will, however, have to compete with many of its near neighbours, which have already established a strong position in the market and have the infrastructure needed to support their tourism industries.