Dubai flexes muscles

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DTCM’s Eyad Ali Abdul Rahman.

Sultan also acknowledged the need to ensure markets such as the UK, where the value of the pound had decreased, were offered competitively-priced airfares and hotel rates.

"If you offer a 25% discount, it's not much of a difference in a market like the UK where the value of the currency has dropped at least 20% [against the dollar/dirham]," he said.

"Hotels need to offer discounts of up to 60% for it to make a difference to the consumer and Emirates Airline's fares are already in line with currency adjustments."

Hotel campaigns

Rahman noted that the DTCM was currently in talks with the emirate's hoteliers as to how to ensure business from Dubai's key source markets - namely, the UK, Germany and the GCC - would remain buoyant during the summer and the Holy Month of Ramadan.

Last month, DTCM director general Khalid A bin Sulayem met with the members of the Hotel and Hotel Apartment Group to discuss ways to boost visitor numbers and hotel occupancies during this period.

The director of DTCM's representative office, Aly El Zayat, briefed the meeting about the Dubai promotion in Saudi Arabia, which will run during the summer until the Eid Al Fitr and see visitors from the Kingdom get one extra night stay for every two nights they book in a hotel, plus when there are two children per room, the second room will be sold at a 50% discount. Also included are airport transfers.

The DTCM has published 60,000 booklets marketing this promotion, which supports KSA's travel trade as it is only bookable through travel agents.

Rahman said that similar initiatives were planned for the UK and Germany.

"It's important to provide added value with discounts on meals and for children, particularly in the UK market where the value of the pound against the dirham has dropped - we need to make Dubai more affordable [for this market]," he said.

In terms of emerging source markets, Rahman said the push into China, where the DTCM now has three offices, would continue.

"We will also push into Latin America, although our plan to open an office in Sao Paolo will now be delayed until 2010 probably," he added.

Facts and figures

Both Rahman and Sultan were reluctant to talk figures in terms of visitors to Dubai.

"It's a difficult question, but I'll be honest with you - if we reach the same levels as last year (2008) or even a little bit less, that is very good," said Rahman.

He added that contrary to popular belief, hotel occupancies were holding up now room rates had been decreased to suitable levels and that hoteliers had stopped panicking.

"In January, we had a big industry meeting with the hoteliers and travel agents and one of the managers of a big hotel was very scared about February and March, thinking he'd only have 10% occupancy. But when I saw him last week, he said he was fully booked in April and he was very happy," Rahman explained.

"That means that we are planning right and that we are going in the right direction. I'm not worried, honestly."

Meanwhile, Sultan said that while load factors on Emirates were holding up, demand had softened, but this gave the airline the perfect opportunity to focus on offline markets.

"Six months ago we had spillage of traffic and we couldn't concentrate on secondary markets, but now we have that ability because the market has slowed down," he said.

"We are looking to stimulate demand in these markets - in places like Belgrade, Kazakstan and Almaty in East Europe and in Berlin and Stuttgart in Germany.

"It's also a good testing ground - good research for possible new routes."

Sultan also highlighted the opportunity to market the UAE in its entirety and said the way in which the country exhibited in one area at ITB Berlin was a good example of how that could be done.

"Selling the UAE makes perfect sense -there is so much to do across all of the emirates," he said.

"Major tour operators in Germany are already looking to push the UAE - bringing in tourists to Dubai and then shuttling them around the region."

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