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Abu Dhabi on the right track

by ArabianBusiness.com staff writer on Sunday, 29 April 2007
All systems go: The F1 Racing and the Louvre Museum will surely add more glitter to Abu Dhabi’s already shining status.

Abu Dhabi, with the largest population among the seven emirates reaching 1.6 million, has set its efforts on luring more visitors by enhancing its tourist attractions. In 2006, the capital's tourism sector broke all previous records by earning total revenues of US$490m as opposed to US$408m in 2005, hitting a growth rate of 19%. Tourism in Abu Dhabi accounts for 2.9% of the emirate's GDP or US$2.36bn and 7.1% of the non-oil domestic product.

Hotel occupancy rates have also risen significantly in 2006 reaching 84.4% compared to 78.4% for 2005. The number of visitors arriving in Abu Dhabi in 2006 reached 1,345,000, a 12% increase on 2005. And with a handful of multi-million dollar tourism-related projects lined up for the emirate, the numbers are bound to increase. One of the most recently launched initiatives for Abu Dhabi is the US$218m Conrad Abu Dhabi hotel by the Hilton Hotels Corporation. The international hospitality group signed an agreement with Al Mazroui Holding, which in turn partnered with Abu Dhabi's Tourism Development and Investment Company (TDIC), to develop the hotel as part of a US$1.4bn Lagoon Club Hotel and Residences development to be located on the emirate's corniche. Scheduled to open in 2009, Conrad Abu Dhabi will become Hilton's fourth property and the first Conrad in the capital.

"We are committed to the future growth of Abu Dhabi, just as we did 35 years ago when we became the first international hotel chain to operate in this region," said Matt Hart, President and COO of Hilton Hotels Corporation during the signing ceremony at the Abu Dhabi Tourism Authority (ADTA). The hotel will open with 380 guest rooms and 80 serviced apartments catering to the growing future demand in the emirate, estimated to reach 2.8 million visitors by the end of this year and 6.2 million by the end of 2015. The estimated number of additional rooms to meet demand by 2015 is 24,000.

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TDIC, which manages the tourism assets of ADTA, has also partnered with Abu Dhabi's Al Farida Investment Company to build US$136m multi-use development comprising of a hotel, apartment and shopping centre. The development will transform the area surrounding Zayed Sports City, the largest sports stadium in the UAE and host to major international events. The project will provide another 306 rooms, 146 serviced apartments and 91 residential apartments, due for completion in 2009.

In its efforts to attract tourists Abu Dhabi is focusing on cultural and ecotourism projects, as presented in the mixed-use development on Saadiyat Island, featuring a cultural district with a performance arts centre and four museums designed by world-renowned architects. The island will feature the Maritime Museum by architect Tadao Ando, the world's largest Guggenheim museum by Frank Gehry, Saadiyat's Performing Arts Centre by Zaha Hadid, the Classical Museum incorporating the Louvre by Jean Nouvel. Museums will open under a phased programme starting in 1012. Another attraction to the emirate will manifest itself in 2009 when Abu Dhabi will host the Formula 1 Grand Prix. The track of one of the world's most prestigious sporting events is currently being constructed by Aldar Properties and designed by renowned Formula 1TM circuit designer Hermann Tilke.

Golf is also big business in the UAE capital. The city has five golf courses and, with its annual Golf Championship event, owned by ADTA, fans of the game continue to increase. This year's championship hosted over 23,000 spectators, breaking organisers' target of 20,000 and notching up a 30% increase on last year's inaugural tournament attendance of 17,787.

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