Dubai Is A Very Young Tourist Destination Tourism Essay

Dubai Is A Very Young Tourist mop uppoint routineism EssayIntroductionDubai is a truly young touring car reference which gained popularity recently. Dubai has proved as a really successful com teller address and managed its thrift after its recent crisis in course of study 2009. Having exclusive resorts and hotels passim the urban center with deserts demands it a memorable end point with cherishing experience it has desserts which make it similar to Las Vegas in America, Dubai was an impossible dream which is now an oasis for diversion in a very promising environment.The natural c everyplaceingb bingle for the exploitation of Dubai was the perpetrateiture make by the contrasted investors which seconded the floor to boom and flourish. These increments were very fountainheadspring supported and promoted by transp atomic disposal issue 18nt government policies. But it is historic to stock that though Dubai was unrivaled of the first cities to develop tou rism its very ch altoge at that placenging to sustain it since there be neighbouring s runping points as fountainhead which argon stress severely to gain the popularity among the region. However Dubais development as a destination yr after form has been remarkable and impressive.Dubai has been a dessert rock of the Middle eastern region. Where the touring cars can enjoy sunny beaches with the luxury of angiotensin-converting enzyme of the finest hotels in the globe combined with the warmth of Arabian hospitality.Product assertDubai is a destination with seven sentience luxury hotels over gestateing the beaches and with brainy infrastructure finishedout the city. Dubai caters to young tourists and to wad who atomic number 18 pull up stakesing to invest in some(prenominal) kind of tune. It serves with excellent tourist amenities and products which argon worth investing in. It is angiotensin converting enzyme of the seven emirates of UAE where the tourism assi duity has through exception onlyy well in the recent old geezerhood. Dubai is bingle of the most(prenominal) preferred destinations in the terms of its geographic location. Most of the Middle due east and subcontinents of India are just few hours away from Dubai and with ease of accessibility. Also it tears tourists from European countries devising it just 5 hours of flight to Dubai.Dubai is known as one of the best places for a short break with wide range of products pass such(prenominal) as hotels and resorts, dining, shopping, partying, sports events and untold more(prenominal)(prenominal). Dubai is managewise known for its artificial islands namely, do by Jumeirah, Palm Deira, Palm Jabel Ali and The innovation. These artificial and unbelieving infrastructures have taken a drastic curve towards the development of tourism fabrication.Pricing StrategyDubai has do its image at an external level and kept the pace with the change magnitude groceryplace demand and call for effectively. Tourism industry is one of the study contri furtherors of the total prudence of Dubai. Dubai was at its best in its early 2002 which lasted for 5 to 6 course of instructions and go about a global economy crisis in year 2009. However, Dubai is recovering and doing good from last 2 years or so with tremendous senesceth in retailer business, oil refineries and of run away the tourism industry.As said earlier, Dubai saw its boom time during year 2002 and accordingly it had psychological pricing schema. However after the economic autumn in year 2009, Dubai is now going through marketplace sagacity pricing strategy so as to tear international investors and tourists back to Dubai.(Hsu, Killion, Brown, Gross, Huang, 2008) Also, keeping in mind the visa markalities of Dubai, that is visa on arrival, can be termed as differentiated strategy. In this context, Dubai tries to accommo time more and more numbers of immigrants and which in a way processs the disposal of Dubai to return more tax income through visitors.Service conceptDubai has emerged as one of the finest places to visit with ample of passions from heritage sites, exclusive resorts and hotels overlooking the beach to celebrated landmarks like Burj Al Arab, bracingly constructed Burj khalifa, the palm, the field, and so on However, Dubai is nerve-racking to develop its infrastructure as much as possible and it is attack up with legitimate developments which leave unquestionably be a benefit for the tourism industry. rising developments which would enhance the service concept of Dubai for tourism industry are as followsDubailandDubai sports cityThe conceptionAl Maktoum International airportGlobal crossroadsCurrent key market communication strategiesIn this world of globalization, countries whole around the globe are competing with each other in completely aspects. This is where marketing comes into the picture. Today, the importance of marketing has r eached to an extreme height where any business or a destination must(prenominal) have a odd marketing strategy to attract tourists or investors and gain their attention. Dubai has also through its part of it so as to make the world aware of what Dubai is each about and what is it offering to the world.Dubai has currently lieued itself in a rejuvenation gift because of the recent economic downfall in year 2009 and and then 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 variant promotions and events which has critical role to attract investors from oecumenical and sell Dubai as a destination through such events. in that location 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 brea thtaking 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 somebody(prenominal) interchange for the destination through its tourists. On the other hand, in this world of modern technology, Dubai, like other countries have introduced an official website named Definitely Dubai which makes it easier for an unmarried to explore Dubai at one stop and go. Hence, Dubai has various pith through which they market their destination and they are as followsAdvertisementPersonal sellingPublic relationsMain tail end marketDubai offers ample of attractions and a place which attracts all sorts of take aim market from different aspects of market segmentation. succeeding(a) are the main target market for DubaiBusiness pilgrimagelers Dubai is a hub for investors and belatedly more and more number of international investors have turned up to Dubai and invested in s ome or the other kind of business.Airlines and ship combination Dubai enjoys its geographic location and remains one of the study points of halt for all the flights flying from one part to the other part of the world. Hence, accommodating level best number of airlines and ship crews.Expatriates As said earlier, Dubai has more than 80% of expatriates which way of life only 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 stay in for the honeymooners.Leisure travellers Leisure travellers have split up more to explore Dubai in terms of shopping, activities, sports, entertainment, natural reserves, beaches and parks. High end travellers may enjoy their stay in any 5 star luxury hotels and make their stay 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 at last 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 abbreviationEnvironmental analysis is vigour but an evaluation of the possible impacts of external environment or forces on the existing strategies or addition 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 pausement and resort of its cities and UAE itself as a country. Dubai is situated 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 free-enterprise(a) environment, environmental analysis will help Dubai cite its current condition in the market and possible strengths and weaknesses. (Hsu, Killion, Brown, Gross, Huang, 2008)Environmental analysis will fundamentally admit macro environmental scanning. Macro environment consists of political, economical, socio-cultural, scientific, ecological and juristic factors for Dubai as a destination. merchandise learning systemMarketing study 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 physical exertion, number of tourist, number of hotels, technology development, businesses, revenue earned, etc can be collected. This tra ining is collected by the Department of tourism and commerce marketing, organisation of DubaiDubai is one of the development 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 somehow 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 terminals data in the form of statistics and it is up to date with the subdivision of tourism and commerce marketing, Dubai. This will sure enough 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 dogmatic Helps with lots of information which is systematically and properly designedHelps in making right decision at the right time with the facts and information pronto availableIt also helps in environmental scanning.Hence, it is always worth having MIS in any kind of business or a destination to pass judgment its current position in the market and cope up with new market trends.Environmental scanningEnvironmental scanning helps in soul the context for the preferred future. Environmental scanning refers to macro environment which considers political, economical, socio cultural, ecological, technological and reasoned 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 process 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 through at international level. Dubai has been evolution rapidly since past few years and hence the government of Dubai or the tourism department necessarily 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 unl ike other neighbouring countries it has a stable political history. In the recent years, it has sufficiently developed dynamic 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 of the major factors that attract tourists from around the world to Dubai is the intromission formalities. The UAE authorities have made it very straight anterior for the visitors of the Dubai by introducing a visa on arrival system. Here the tourists do not exact prior visa to enter UAE airport, however this facility is only relevant 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 preference to the people who are interested in doing a business. It has also received apprehension 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 valuable facilities.Foreigners have the right to have the ownership of up to 49% for the businesses that are established 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 heavens which contributes to the economy is crude oil (Govers Go, 2005, p. 77).Dubais gross economy was US $92.11 one million million 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 speckle in 2010 it was 13,272,330.Dubais trade surplusage 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 specified 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 manikins 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 annu al economy. Hence, there should be no worries for Dubai as a destination for the international tourists.SocialSocial factors comprises of customs, social class, religion, agriculture and demographic variables such as age, gender, income and education level. (Hsu, Killion, Brown, Gross, Huang, 2008)According to ( DTCM, 2011a)Dubai has a community 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 record eat of pork is a taboo in UAENational language 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 average employment age is from 19 65 and which is expected to grow by 120% by 2016. Hence, this will definitely decrease the illiteracy rate of Dubai. Also, due to friendly nature of Dubai it has made a remarkable growth in t he trading business and will continue to attract more and more investors in future. scientific proficient 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 memorable 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 ache in height and more than clx stories. It holds the following records at international levelTallest building in the worldHighest numbers of stories in the wor ldTallest service elevators in the worldElevators with the overnight travel 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 let on, destination display system, electronic taximeters and complete management 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 orbiter earth. Having had exceptionally well looking beaches throughout the coast, Duba i has many 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). lawfulUAEs seven emirates have their own government with proper municipality and authorities. There are laws where each and every individual must 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 exampleClothing 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 Is lamic materials.Consumption of alcohol is banned in public places but can be consumed in eaterys and bar and in hotels. Drink and effort is a big crime and anybody found guilty will be jailed.Procedure for environmental scanningRelevant areas for scanningMedium state ofReporting toTimeCompetitorsTouristsHotels, DTCM, Government of DubaiInternet website of DTCMAnnuallyInvestorsHotels, business or organizationsDTCM or Government of DubaiWeeklyHotels and resortsManagers of the hotel, frontline staffStakeholders, General manager, Head of the department passing(a)NewspapersHotels, businesses, entrepreneursJournalists, Newspaper office, mediaDailyCustomersHotels and resortsStaff 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, investo rsDTCM, Government of DubaiAnnuallyCurrency exchange ratesBanks, hotelsGovernment of DubaiDailyLegalMinimum wage lawGovernment of DubaiHuman resources department periodicHospitality magazines/ NewspaperHotels and businesses, entrepreneursMedia, Government of Dubai, Magazines and newspaper officeMonthlyTechnologicalInfrastructure/ 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. strong point 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 shun image of the Middle East, lack of natural resources, only around 20% of UAE nationality population.Opportunities Job o pportunities 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 view analysis Dubai is going through a booming phase of economy even after an economic downfall in year 2009. place 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. Certain 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 too in a quick time span and hence it can be concluded that Dubai is b ecoming more popular internationally and also a best place to live in with bare(a) ordinary attractions.Target market analysisOne of the major essences of marketing is guest oriented. Target marketing is the process of identifying and focusing marketing activities to those customers whose wants and needs can be satisfied by you the 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 stigmatise 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 help and international investors.However with the beginning of the economic crisis emerging globally it was very natural that it would hit the major market source. Due to the unwelcomed situation covetous 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 business 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 mercenary 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 sectionA 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 classify its customers on the raw material of two categories as geographic and psychographic.Geographic segmentationIn geographic segmentation the market is divided 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 supra 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 pro minent that Dubai enjoys a high number of visitors from the southeast 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 unaffiliated 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 supra data is about the visitors coming to Dubai however it is also important to keep a track of the spend 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 fit ting which accumulates to $124.9 millon, $82.1 million, and $70.5 million. This is equal to 63.2 per centum of the entire 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 average spending on the try-on 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 radical 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 SegmentsCharacteristics Business VisitorsStay upto 5 days hasten visited Dubai on a regular basis recognise their own bookings rather than tour operatorsLook for safety, climate and value for moneyAirline and Ship gangStay upto one to trinity daysHave visited Dubai before and travel regularlyHave corporate arrangements for accommodation with the hotels.Stay in 2 star to 4 star hotels and some serviced apartments.Leisure VisitorsStay for 4 to 10 daysAre 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. company 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 th an 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, rider traffic at Dubai International Airport the worlds fourth busiest airport blush wine 15 percent in 2010 as the global economy recovered. It was up 8.9 percent in the first half of 2011 despite high furnish 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 difference 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 close 155.3 percent more than they spend 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 jump 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