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Tue 1 Apr 2014 10:35 AM

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Chinese firm to fly 14,500 to the UAE for sales junket

Nu Skin China will use 77 flights and 39 hotels in Dubai and Abu Dhabi to accommodate staff for 10-day event - report

Chinese firm to fly 14,500 to the UAE for sales junket
(Photo for illustrative purpose only) (AFP/Getty Images)

A Chinese company recently fined more than $500,000 by local regulators over its sales tactics to push personal care products and dietary supplements is reportedly spending hundreds of millions of dollars to fly 14,500 employees to the UAE for a 10-day junket.

The National newspaper reported on Tuesday that Nu Skin China, a subsidiary of US firm Nu Skin Enterprises, will need 77 flights and 39 hotels in Dubai and Abu Dhabi to accommodate staff from this Sunday, with the company also said to have hired two Emirates charter flights.

The trip, which is reportedly being co-organised locally by Arabian Adventures, will also cover visits to popular tourist spots such as Burj Khalifa, Sheikh Zayed Grand Mosque and the Sharjah Islamic Museum as well as well as two 8,000-person dinners at Yas Marina Circuit.

The National reported that the Yas Viceroy, the Shangri-La Dubai, the Westin Abu Dhabi and the Sheraton Mall of the Emirates are among the hotels that will be used by Nu Skin staff, with the company also said to have booked out Ferrari World for three days.

Last week China’s consumer watchdog fined NU Skin Enterprises Inc (NUS.N) $540,000, while six sales staff will also face individual fines totaling $241,000, for illegal product sales and misleading local consumers over its  direct sales market method.

Chinese laws allow direct sales under limited conditions, but there are laws banning so-called pyramid selling, when members make more money recruiting new members than selling the actual product.

Nu Skin sold items outside the permitted range and overstated the potential results from using some of its products, China's State Administration for Industry & Commerce (SAIC) said in a statement on its website, adding some employees had also engaged in unsanctioned sales and misled consumers.

The US firm had previously said it has taken steps to resolve the matter and had expected to face a fine in China.

"The company is already taking steps to correct the issues raised in the SAIC reviews, and is not aware of any other material enforcement investigations currently pending in China," Nu Skin said in a statement reported by Reuters.

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Saeed 5 years ago

If only I was working for such a great company! What an awesome Sales Blitz! April Fools guys!

Mark Reed 5 years ago

Ha ha, April Fool :-)

Swayze 5 years ago

Ponzi scheme... check out Herbalife (HLF)

imw 5 years ago

Last week I attended a cocktail function at the Yas Marina Circuit. The Australian guide then commented that next week this venue is going to host 8,000 people and that Ferrari World is also booked for 3 days. I was wondering where from Abu Dhabi is getting such big numbers!

Today, in the front page of TTN ( Travel & Tourism News Middle East this is the cover story which says Arabian Adventure is handling an incentive group of 14,500 people from China next week.

Being in the travel & tourism industry, I have been hearing a lot about Chinese people traveling all over the world and that it is the market now to focus on. It is good to see live examples now in our vicinity. I think it is time to really focus on the Chinese market for incoming tourism in our country.