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Discuss this article (0 Comments)A strategy for stormy times
by ArabianBusiness.com staff writer on Thursday, 15 January 2009
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"We're not talking about two-star joints here, but let's have more mid-scale and up-scale product to access people at different price points; the socio-economic B as opposed to the A and the B+, let's get to B and C+. This segment of the market is one we have never stimulated before in the region and that's what we need to do.
"Our luxury-segment growing was totally dependent on growth in our feeder markets because if the economies do well, that segment grows. For the next year to two years, those segments are not going to grow because the economies are challenged around the world, so we do need I think to be able to offer more diversified experience and price points here," says Kyrikidis.
While the hospitality industry needs to branch out in order to encourage tourists to book a stay here, it's the leisure sector that needs to focus on diversification in order to ensure that people, in particular families, stay for long enough.
"Another way of introducing more tourists to the emirate is to continue developing a diverse range of attractions such as theme parks, cultural attractions, museums and nature reserves to widen the appeal to all different types of tourists, such as families," says Kyrikidis.
"The family market is key. At the moment tourism is targeted towards the beach strip and it's really more sun and sea oriented.If we want to diversify we've got to offer more for families to do in the UAE than just sitting by the beach and that is where the Dubailand attractions, the museum attractions in Abu Dhabi come in and the Formula One at Yas Island come in," he observes.
"We need to start marketing those big attractions, like Universal Studios in Dubailand, in the global distribution channels. At the moment, we're just not. We need to do that, it's vital," he urges.
Despite these major attractions brands, not to mention the many internationally renowned hotel brands, adding a big draw to the destination, Kyriakidis says there will be increased emphasis on value for money among consumers through 2009.
"The reality though is that it's not about brand in the region; it's going to be about price," he asserts.
"My view is that for the next year to two years it's all going to be about price points. I think people will be looking for value packages. It's going to be less about brand and more about value and that's going to be the name of the game."
So while the development and diversification of the leisure sector will be key to preventing a slow-down in tourism, it is not a given. Attractions will still be competing with those in Egypt, Turkey and the Far East as destinations that have not been affected by the strengthening of the dollar.
It seems then that success will be only be the case if operators play "the game" and offer value for money experiences for cash-conscious consumers.
Remember, this advice comes from a man who has endured four recessions; while the region isn't in that situation yet, it could be well worth heeding Kyriakidis' words and saving yourself some costs too.
Tatweer urges the industry to be careful but remain positive
Special guest at Deloitte's Global Tourism, Hospitality and Leisure industry meeting and lunch was Khalid Al Mailk, CEO of Tatweer Dubai, the developer of Dubailand in Dubai.
While he accepted that there are challenges Dubai has to overcome, such as turning short stays into long says, Al Malik was generally optimistic about the future growth of tourism to the emirate. He said: "The vision is very simple; we want to be the top global destination for family leisure, entertainment and hospitality by offering memorable customer experiences, by 2015.
He explained to guests that Dubailand was focused on being unique and different; offering local and global brands; meeting the diverse need of the tourist market; creating a unique holiday experience and attempting to attract families.
"Families must be addressed properly; leisure and entertainment must be properly constructed to give an experience that will bring something different for them. Finally, we need to offer value for money without a doubt," he said.
"Although we might have a tough time next year we are positive about it and for all these aims to be accomplished we need hotels. Bawadi is really the solution to this problem," he added. "If you put all the puzzle pieces together you'll realise that all of this is planned properly and will contribute to the vision of Dubai."
"We have got to be very careful though in our approach going forward that everything comes together," he continued.
"Dubai will keep evolving its projects, especially those that will contribute to the vision of 2015, and the 15 million visitors must come to Dubai - it's not an option. This is an issue that we think is a survival one, we will work hard all of us to achieve it, the commitment is there, the devotion is there, but we will focus very much now with regard to how to do it; it's a different environment and a different situation to be in now.
"We need to be careful how we do things at this stage in time, we have to be careful how we manage our company, how we manage our cash, how we manage our people," said Al Malik.
"At the same time, being positive about this is critical to moving on. We're going to deliver on the promises we gave to our people and to the market and the Dubai vision for 2015 will be achieved," asserted Al Malik.
Special guest at Deloitte's Global Tourism, Hospitality and Leisure industry meeting and lunch was Khalid Al Mailk, CEO of Tatweer Dubai, the developer of Dubailand in Dubai.
While he accepted that there are challenges Dubai has to overcome, such as turning short stays into long says, Al Malik was generally optimistic about the future growth of tourism to the emirate. He said: "The vision is very simple; we want to be the top global destination for family leisure, entertainment and hospitality by offering memorable customer experiences, by 2015.
He explained to guests that Dubailand was focused on being unique and different; offering local and global brands; meeting the diverse need of the tourist market; creating a unique holiday experience and attempting to attract families.
"Families must be addressed properly; leisure and entertainment must be properly constructed to give an experience that will bring something different for them. Finally, we need to offer value for money without a doubt," he said.
"Although we might have a tough time next year we are positive about it and for all these aims to be accomplished we need hotels. Bawadi is really the solution to this problem," he added. "If you put all the puzzle pieces together you'll realise that all of this is planned properly and will contribute to the vision of Dubai."
"We have got to be very careful though in our approach going forward that everything comes together," he continued.
"Dubai will keep evolving its projects, especially those that will contribute to the vision of 2015, and the 15 million visitors must come to Dubai - it's not an option. This is an issue that we think is a survival one, we will work hard all of us to achieve it, the commitment is there, the devotion is there, but we will focus very much now with regard to how to do it; it's a different environment and a different situation to be in now.
"We need to be careful how we do things at this stage in time, we have to be careful how we manage our company, how we manage our cash, how we manage our people," said Al Malik.
"At the same time, being positive about this is critical to moving on. We're going to deliver on the promises we gave to our people and to the market and the Dubai vision for 2015 will be achieved," asserted Al Malik.
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