Shopping fest to offer bigger bargains amid global gloom

FESTIVAL TIME: Dubai Shopping Festival is to put emphasis on deep discounting amid the global slowdown. (Getty Images)

The Dubai Shopping Festival (DSF) will be putting more emphasis on deep discounting and less focus on entertainment this year, as it faces a slowing world economy and strengthening dollar.

DSF chief executive Laila Suhail said the festival, which starts on Jan 15, hopes to attract around 3 million visitors this year, the same number as in 2008.

Participating hotels will be slashing their rates by 40 to 60 percent to mark the event this year, and many are throwing in discounted meals and free breakfasts to boost occupancy.

The ninth annual DSF will also be placing less emphasis on entertainment than in the past to focus on its core activity: shopping.

“This year the focus is more on shopping, in terms of the offers that will be given by the retailers,” Suhail said.

But for UK tourists and expats, the resurgent dollar, to which all Gulf currencies except the Kuwaiti dinar are pegged, has made for some eye watering price differences.

After breaking the $2 barrier last summer, the sterling has plummeted against the dollar and was last week trading at around $1.50.

Around 30 percent of Dubai’s tourists are estimated to come from the UK.

But with the country in the throes of a recession, and some British highstreet brands now costing 50 percent more in the UAE than they do at home, DSF has been focusing its marketing efforts elsewhere.

“We have focused more on the GCC, India, CIS (Commonwealth of Independent States) and Iran,” Suhail said.

For people in those markets, a combination of factors will make DSF an attractive destination, she said.

Travelling to Dubai will be cheaper than going to Europe, and accommodation will be deeply discounted.

Then there’s the weather: while prices in London’s Oxford Street may be unbeatable right now, there’s something else to be said for the temperature outside.

Still, Suhail admitted that this is a challenging year to be organizing the event, but added: “We’ve learnt something in Dubai: that we need to keep going and to be optimistic, and to always keep improving.”

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READERS' COMMENTS

Rents
Posted by mike on Sunday 11 January 2009 at 16:10 UAE time


Yes, it costs 25,000 Dhs per month to rent a qiosk in any of the popular shopping malls, but that's not all. They require 6 months in advance and a 30,000 Dhs processiing fee. That's 180,000 Dhs you have to pay before you even get started. Then you have the cost of goods to pay for. And depending on where in the mall they have located you, you may not even be able to make your rent. THere was a time when it almost made sense to go for something like this. but those days are gone.

We do most of our shopping when we go abroad. As a few people have already mentioned, the latest products don't make it here for at least 6 months afer they have been on shelves in other places and they are more expensive. Dubai shopping malls have done a good job of shooting themselves in the foot.

Waiting for DSF
Posted by Obelix, Dubai, UAE on Sunday 11 January 2009 at 11:27 UAE time

OOOOh, I just can't wait for the DSF which is a couple of days away knowing fully well that is being organised because it has to be done - a face saving exercise. This will in all probability become a classic case of 'spite-your-nose-to-save-your face'.

I bet the already stressed retailers are being pressed to get their act together.

Prices in Dubai are way off the international markets. I wanted to buy a little complicated PC and the US price was about 30% less than Dubai. No it was not on sale in the US due to the current recession they are facing.

Gulf Prices 30+% higher than home
Posted by Cutter, Doha, Qatar on Sunday 11 January 2009 at 09:01 UAE time

I am from Canada working in Qatar. I am surprised that the price of electronics is at least 25% more in Qatar vs. Canada. I just bought a Canon camera here for $500 Canadian. The same camera in Alberta is $321 Canadian. Over 50% more here! How is this?
The same with computers. I am planning on buying a new laptop but the prices here are also around 30-40% more in Qatar than Canada. I will therefore wait until next summer when I go home to do my shopping.
Is it the retailers pocketing all the extra profit margins?

One example: digital camera
Posted by Arno on Saturday 10 January 2009 at 01:31 UAE time


A few years ago Dubai was really famous for cheap retail prices. But things have really changed, I have recently bought a top of the range digital camera in France 25% cheaper than here (and there we have 20% VAT!!). And it comes with a better warranty! And my feelling is that it is becoming the same case for all kind of goods...

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