The service sector, hospitality to be exact, is bound to develop further from its current role due to the tremendous global economic development in the fields of transport, leisure, hotels, and recreation facilities that characterize the hotel industry. It has also been noted that the economic activities within the domains of the hotel industry and the investment made in this sector are massive and booming. These aspects contribute to the development of the hospitality industry. Above all, the growing number of foreign travelers behind the scenes of tourism and its exponential growth paved the way for the hotel industry to profit immensely. Consequently, the economic factors and their importance in that respect regarding operations concerning the hospitality sector are perfect and immeasurable in terms of the growth factor and the economic aspects in that respect. But we also ask what distinguishes the hotel industry or, let’s say, the hospitality industry for that matter? In particular, the hotel industry is a wide term that covers the hospitality sector as a whole, spanning hotels, restaurants, leisure, and many more.
The hotel industry is massive on a global scale. There is a high degree of economic development in the global hospitality sector. Owing to the rise of travel, leisure and accommodation facilities as well as food chains and the growing number of restaurants, the global hospitality sector provides an immense economic potential for all sorts of businesses, let it be funding, finance, or the aspect that is also pushing the building industry in the economy of the world. Most importantly, job prospects in the hotel sector are still immense on a global scale. There is no question about this since the hospitality industry covers all the characteristics of the service sector.
All in all, and as we concentrate our attention on the hotel/hospitality industry in the UAE, we still feel that there is several fascinating information to report on, in particular, the growth aspect of the UAE hospitality industry in the present scheme of things.
Table of Contents
Hospitality Business in UAE
According to research, the hotel industry in the UAE and, in general, its Trucial Town, Dubai, is very successful. In particular, Dubai and the UAE identify a landmark for all sorts of luxury. Thus, when it comes to the hotel business, it is not shocking to see that, in this context, the UAE boasts a large avenue and a thriving scenario for the hotel industry. One example of this is the Dubai Marina Hotel and Resorts, a treat for world tourists and regular tourists looking for comfort.
To understand the very component of the hospitality industry in the UAE and, in general, in Dubai, we think that the observation of development projects in the tourism industry and the rise in tourism attraction development in recent times can be successful. One example of this can be seen from the Palm Spring Island and the Burj Al Arab Hotel, which has been opened and run since 2009, boasting a seven-star class, and which are declared to be among the world’s most luxurious hotels.
Top Developments in the Dubai Hospitality Industry
The hospitality industry in Dubai is a significant contributor to the UAE economy and a big employer. According to the Knight Frank Report ‘UAE Hospitality Industry 2018,’ it is reported that the hospitality sector contributed more than Dh150 billion to UAE GDP (4.6 percent of GDP) and created almost 570,000 jobs (4.8 percent of total employment) in 2017.
Dubai is now known to be one of the world’s leading leisure resorts, and the city has sculpted notoriety for drawing rich visitors. The largest international airport in the country, has seen a rise in passenger numbers from 57.68 million in 2012 to 88.24 million in 2017, an increase of 53 percent. In the years ahead, more visitors are expected to visit Dubai, which will be inspired not just by conventional hotel ratings but also by affordable, customized, and culturally aware experiences.
Following are a few top trends happening in Dubai which a thriving the growth of Dubai’s Hospitality Industry;
An Increase in Tourist numbers due to ease in Visa Procedures
To meet their respective target tourist numbers (Dubai 2020 Tourism Vision), the UAE is looking at new source markets and easing its visa requirements. UAE is also issuing visas to Russian, Chinese, and Indian residents upon entry. The relaxation of entry constraints in the UAE proved positive in recent years, with a large rise in tourist numbers from such source markets. In Dubai, the number of arrivals from India, China, and Russia rose by 17%, 46% and 11%, respectively, year-on-year.
A Noticeable Increase in Supply
The government of Dubai is conscious that, to plan for the forthcoming Dubai Expo 2020, housing space needs to be expanded. According to data from Dubai Tourism & Commerce Marketing Company (Dubai Tourism), Dubai currently has 104 five-star hotels. 53 five-star hotels are in the development or construction stages, with opening dates until Expo 2020.
Employment of the Latest Technology
Technology is a primary method used among hoteliers to enhance the experience of visitors. Strong CRM apps and Smart TVs help guests access their media channels on their TV space. Remote check-in and remote keyless entry are other developments that are taking place via mobile phone apps. Hotels use POS tools to make their processes simpler, to provide better data, and to be able to manage it effectively. The billing software allows hotels to monitor food purchases at any source, including room service, and to include consolidated or independent reporting on every sale and customer. This technology convergence is, by far the most prominent trend in the hospitality industry in Dubai in 2020.
There are several business prospects in the hospitality industry in the UAE. There are several of them, such as Hotel Business, Cleaning Service, Outsourcing of Room Service, Tour Operator, Travel and Tourism Business, etc. The process for setting up a company in any of the sectors mentioned above is the same as every other company set-up. The UAE government has made this practice quick and transparent. With only a few moves, you will be legally approved to start a company.
We can infer that the UAE hotel industry is not a mere entity to dream about from our brief research. After the global financial crisis of 2009, the UAE has significantly improved in all segments of the economy. It is also noticed that the hotel industry is not far behind in development. The UAE government and its effort to raise awareness and raise awareness of the numerous programs and back-to-back conferences held in the region and tourism development programs and their development, have been explicitly planned to contribute to the development of the hotel/hospitality sector in the UAE.