In a few short years, tourism has helped diversify Abu Dhabi’s economy considerably, with events such as the annual Formula One Etihad Airways Abu Dhabi Grand Prix a direct contributor to rising tourist numbers.
From just over 1.5 million visitors in 2008, the year before the first F1 Etihad Airways Abu Dhabi Grand Prix was held, to more than 2.1 million visitors in 2011, the emirate has recorded a near 40 per cent increase in three years. Of all the hotel guests last year, a record 206,748 came to the emirate in November, the month of the Formula One Etihad Airways Abu Dhabi Grand Prix — a stunning 22 per cent increase on the corresponding period in 2010 and marking the first time in two years that a calendar month has broken the 200,000 mark. Hotels across the city posted an occupancy rate of 77 per cent, consistent with November 2010, in spite of an expansion in the emirate’s hospitality portfolio with a range of new, luxury hotel property openings.
Substantial numbers
This year, the emirate is on track to reach its 2012 hotel guest target of 2.3 million, according to a statement from the Abu Dhabi Tourism and Culture Authority (TCA). “We are well placed to again achieve our annual target as we have a series of major events to come, including the F1 Etihad Airways Abu Dhabi Grand Prix and Abu Dhabi Art,” Mubarak Al Muhairi, Director General, TCA Abu Dhabi, said in the statement.
From January to August, 1,551,888 people stayed in Abu Dhabi’s 130 hotels and hotel apartments, accounting for 4,393,820 guest nights — a rise of 10 per cent on the same period last year and a 3 per cent uplift in total hotel revenue to Dh2.8 billion.
“The GCC, including domestic tourism from within the UAE, was our strongest growth market during August with guest arrivals from the region climbing 128 per cent on last year — there was particularly strong growth from Qatar, Kuwait and Saudi Arabia,” added Al Muhairi.
The emirate has 9 per cent of the world’s proven oil reserves and 5 per cent of its gas reserves, but has identified 12 sectors in its Economic Vision 2030 to differentiate the economy. These include tourism, aviation, industrial development and services. Its tourism authority is therefore implementing a demand diversification plan for the tourism sector, focusing on the development of the meetings, incentives, conferences and exhibitions sector and on leisure-related infrastructure in the emirate. Key development projects on the Yas and Saadiyat Islands, including the much written-about Louvre and Guggenheim Museums, are expected to help develop Abu Dhabi as an all-inclusive tourism destination. Yas Island is already a major year-round attraction for families, with Ferrari World, the first theme park of its kind in the world. Now a new opening next month will further consolidate this position. “December will see the launch of the destination’s next major power draw — the Yas Waterworld Aqua Park — which is already attracting worldwide attention and promises to deliver a significant year-end boost for Abu Dhabi,” Al Muhairi said.
Flying high
Dovetailing into these plans is a strong aviation strategy. Etihad Airways, the national carrier based in the capital, is on track to carry 10 million passengers in 2012 on the back of strong passenger growth, record seat factors and new codeshare agreements. “All this will have been achieved despite a still fragile global economy, and at times, challenging operating conditions,” CEO James Hogan, said at a conference in Moscow last month, marking four years of flights to Russia. Etihad now flies to more than 85 passenger and cargo destinations and is considering new launches to South America.
In addition, as many as 50 airlines are expected to operate from Abu Dhabi International Airport by the end of the year, James E. Bennett, chief executive officer for Abu Dhabi Airports Company (ADAC), told Gulf News at the Routes Abu Dhabi 2012 forum recently. “In 2012, six new airlines will be operating from Abu Dhabi,” he said, adding that the future of the commercial aviation industry was closely tied to the development of new routes, directly benefiting the economies of a city or a region. “The annual economic impact in tourism alone of an additional daily long-haul service into Abu Dhabi is estimated at approximately Dh100 million,” he said.
City branding
However, the main driver of Abu Dhabi’s growth in the tourism sector has been its substantial marketing efforts in key markets around the world. The tourism authority memorably rolled out a global campaign last year under the call-to-arms tagline: ‘So you think you’ve done it all?’
Earlier this year, the emirate held a four-day majlis-style event in New York’s Times Square to promote the inauguration of the Abu Dhabi Tourism and Culture Authority’s US office in Manhattan’s renowned Trump Tower. The majlis was setup to attract some of the 500,000 people from the US and elsewhere who visit Times Square each day, to the emirate.
And in the summer, a roadshow to seven of the emirate’s top 20 international source markets was designed to heighten international footfall at this year’s race. These included the UK, Germany, Saudi Arabia, China and Russia. “Historically, one in five Abu Dhabi Grand Prix ticket-buyers have been non-UAE residents,” Nick McElwee, Director of Sales and Marketing, Yas Marina Circuit, said in a statement ahead of the event. “This year, as part of collective efforts with key stakeholders to further build the event’s international profile, we have evolved our sales strategy to encompass wider destination marketing alongside generic race promotion.”
By taking the event to proven source markets, the authority said it was strategically upping the ante in territories with well-established track records in generating strong inbound traffic to Abu Dhabi. “Our collective strategy to boost international sales for this year’s Grand Prix is based on casting our net further and earlier than ever before,” says Faisal Al Sheikh, Events Manager, TCA Abu Dhabi.
