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Tourism & Hospitality

Industry Report
Quarter 4 | 2017
Overview, Statistics & Facts 4th Volume | 2017

TOURISM HOSPITALITY
STATISTICAL STATISTICAL
REPORTS REPORTS
TABLE OF CONTENT

TOURISM AND STATISTICAL REPORTS

World Travel & Tourism


UNWTO World Economic Forum
Council (WTTC)

Euromonitor International
MasterCard Reports Bloom Consulting Reports
Reports

Colliers International Competitiveness Ranking


UAE & Sharjah TSA 2015
Reports 17 International Report

Global Innovation Index


Report 2017 - Overview

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TABLE OF CONTENT

HOSPITALITY AND STATISTICAL REPORTS

FCSA - UAE - Hospitality Hotel Performance - STR SCTDA Hospitality Report


Performance 2016 Report December 2017 2017 New

Reputation & Performance ERNST & Young Report


Management of Sharjah HVS – Hospitality Middle
Hospitality Olery December
Global Hospitality Insights
East Report 2017 New
2017 New 2017 Overview New

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Tourism & Hospitality Industry Report Quarter 4 Overview,
Statistics & Facts 4th Volume | 2017

CONTENT LIST
TOURISM STATISTICAL REPORTS

1.1. United Nation World Tourism Organization (UNWTO)


1.1.1. UNWTO Tourism Highlights 2017
1.1.2. World Tourism Barometer Report January 2018 ........................................................NEW
1.1.3. Penetrating the Chinese Outbound Tourism Market
1.1.4. TripAdvisor Travel Trends for the Silk Road 2017 .................................................NEW
1.1.5. Sustainable Development Goals 2017 Overview
1.1.6. Tourism & the Sustainable Development Goals - Journey to 2030 ....................NEW

1.2. World Travel & Tourism Council (WTTC)


1.2.1. WTTC UAE - Travel & Tourism Economic Impact 2017
1.2.2. WTTC Middle East - Travel & Tourism Economic Impact 2017
1.2.3. WTTC World - Travel & Tourism Economic Impact 2017
1.2.4. Managing Overcrowding in Tourism Destinations 2017.........................................NEW

1.3. World Economic Forum (WEF)


1.3.1. TTCR 2017
1.3.2. Global Competitiveness 2017-2018 ..............................................................................NEW

1.4. MasterCard Reports


1.4.1. Global Muslim Travel Index Report 2017
1.4.2. Global Destination Cities Index 2017
1.4.3. Muslim Millennial Travel Report-2017 ...........................................................................NEW

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1.5. Euromonitor International Reports
1.5.1. 2017 Top 100 Cities Destinations Final Report
1.5.2. The Future of an Industry 2017 – Business Travel ................................................ NEW

1.6. Bloom Consulting Reports


1.6.1. Country Brand Ranking Tourism 2017-2018
1.6.2. Digital Country Index 2017 ............................................................................................NEW

1.7. Colliers International Report


1.7.1. Culture and Heritage Travel April-2017-MENA ...........................................................NEW
1.7.2. Retail Tourism Experiential Travel April-2017-Hotels ................................................NEW

1.8. UAE & Sharjah TSA 2015 Overview – CONFIDENTIAL

1.9. UAE Competitiveness Ranking – 17 international Reports ...................................NEW

1.10. Global Innovation Index Report 2017 Overview

HOSPITALITY STATISTICAL REPORTS

2.1. FCSA - UAE Hospitality Performance 2016

2.2. Hotel Performance STR Report - UAE – December 2017 . ......................................NEW

2.3. SCTDA Hospitality Report – December 2017 ..............................................................NEW

2.4. Reputation Management - Sharjah Hotel Establishment - ...................................NEW


Olery - December 2017

2.5. Ernst & Young - Global Hospitality Insights-2017 ......................................................NEW

2.6. HVS – Hospitality Middle East Report 2017 .................................................................NEW

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1.1 UNWTO

1.1.1. UNWTO Tourism Highlights 2017

1.1.2. World Tourism Barometer Report January 2018 NEW

1.1.3. Penetrating the Chinese Outbound Tourism Market

1.1.4. Trip Advisor Travel Trends for the Silk Road 2017 NEW

1.1.5. Sustainable Development Goals 2017 Overview

1.1.6. Tourism & the Sustainable Development Goals - Journey to 2030 NEW

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1.1.1. UNWTO Tourism Highlights 2017

I. Tourism – Key to Development, Prosperity & Well – being


II. International Tourist Arrival
III. International Tourism Receipts
IV. World’s Top Tourism Destination
V. Regional Results – Middle East
VI. Top Spenders in International Tourism
VII. Long – Term Outlook

I. Tourism – Key to Development, Prosperity & Well - being

- An ever-increasing number of destinations worldwide have opened up to, and invested in tourism,
turning it into a key driver of socio-economic progress through the creation of jobs and enterprises,
export revenues, and infrastructure development.
- International tourism receipts earned by destinations worldwide have surged from

Year International Tourism Receipts

2000 US$ 495 billion

2016 US$ 1,220 billion

Tourism is a major category of international trade in services. In addition to receipts earned in


destinations, international tourism also generated US$ 216 billion in exports through international
passenger transport services rendered to non-residents in 2016, bringing the total value of tourism
exports up to US$ 1.4 trillion, or US$ 4 billion a day on average.
International tourism represents 7% of the world’s exports in goods and services, after increasing one
percentage point from 6% in 2015. Tourism has grown faster than world trade for the past five years.

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II. International Tourist Arrival

- An ever-increasing number of destinations worldwide have opened up to, and invested in tourism,
turning it into a key driver of socio-economic progress through the creation of jobs and enterprises,
export revenues, and infrastructure development.
- International tourism receipts earned by destinations worldwide have surged from

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International tourist arrivals (overnight visitors) in 2016 grew by 3.9% to reach 1,235 million world-
wide, an increase of 46 million over the previous year. It was the seventh consecutive year of above
average growth in international tourism following the 2009 global economic crisis.
Demand for international tourism followed the positive trend of previous years, with many destina-
tions reporting sound results, while a few faced security incidents.

MODE OF TRANSPORT - International Tourist Arrivals Travel More by


Air than Surface Transport

PURPOSE OF VISIT - International Tourist Arrivals Over Half of Visits for Leisure Purpose

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III.International Tourism Receipts

International tourism receipts grew by 2.6% in real terms (taking into account exchange rate fluctua-
tions and inflation) with total earnings in the destinations estimated at US$ 1,220 billion worldwide
in 2016.
In receipts, the US and Spain remain at the top, followed by Thailand, which climbed to number 3
last year, and China, which is fourth.
France and Italy moved up in receipts to 5th and 6th position respectively, while the United King-
dom, Mexico and Thailand moved up to 6th, 8th and 9th place in arrivals.

IV.World’s Top Tourism Destinations

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V.Regional Results – Middle East
International Tourist Arrivals:

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International arrivals in the Middle East are estimated to have decreased by 4% in 2016
The region welcomed 54 million international tourists in 2016, or 4% of the world total, and earned
US$ 58 billion in tourism receipts (5% share), a 2% decline in real terms from 2015
The United Arab Emirate of Dubai recorded a 5% increase in arrivals
Arrivals started to recover at the end of the year following important promotional efforts, and
coinciding with the winter season in European markets

VI.Top Spenders in International Tourism

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VII.Long Term Outlook

International tourist arrivals worldwide is expected to increase by 3.3% a year between 2010 and 2030 to reach 1.8 billion by 2030, according to UNW-
TO’s long-term forecast report Tourism Towards 2030.
Between 2010 and 2030, arrivals in emerging destinations (+4.4% a year) expected to increase at twice the rate of those in advanced
economies (+2.2% a year).

international tourist arrivals.

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1.1.2.World Tourism Barometer Report – January 2018
2017 International Tourism Results: the highest in 7 years

International Tourist Arrivals grew by a remarkable 7% in 2017 to reach a total of 1,322 million; this strong momentum is expected to continue in
2018 at a rate of 4 – 5%

Content list:
I. Inbound Tourism: Short Term Trends 2017
II. International Tourism Receipts
III. International Tourism Expenditure
IV. Regional Result By Middle East
V. UNWTO Outlook for 2018

I.INBOUND TOURISM: SHORT TERM TRENDS 2017


Fastest growth in 7 years.

for a period of January- December 2017:


- 60 countries i.e. 42% has an increase on their tourism arrivals
- 64 countries i.e. 43% reporting double-digit growth
- Whilst, 21 countries, i.e. 14% posted a decrease in arrivals
International arrivals have grown at a pace of 4% a year or higher for the eighth year in a row since post-crisis year 2010. In 2017, this number exceeded
1.3Billion and 392Million additional international tourist arrivals were counted compared to the 930Million of pre-crisis year 2008.
Growth led by Southern & Mediterranean Europe, North Africa and various destinations in Middle East.

South – Asia +10% led growth in Asia & the Pacific with +6%
Africa showcases +8% as growth in international arrivals
BY REGION

America continued to enjoy positive i.e. +3% across most of its destinations.
Europe +7% positive growth across norther, western, eastern & central part of Europe
Middle East +5% driven by the continued strength of many destinations combined with a
sound recovery in other regions that had reported declines in earlier years.

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II.INTERNATIONAL TOURISM RECEIPTS

Out of 138 destinations reporting preliminary tourism receipts data for the months of 2017; following is the result of the 138 destinations for
International Tourism Receipt:

Spain – 11% Australia – 14%


Thailand & UK – 10% Germany – 4%
Italy – 7% United States & Honk Kong (China) – Flat Results
France – 8% China – 11% (decline)

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III.INTERNATIONAL TOURISM EXPENDITURE

as the 7% increase in international arrivals.

IV.REGIONAL RESULT BY MIDDLE EAST

Egypt +55%
Palestine +32%
Oman +13%
Dubai +7%
Lebanon +11%
Bahrain +13%
Jordan +11%
Qatar -21%

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VI.UNWTO Outlook for 2018

UNWTO projects International Tourist Arrivals worldwide to grow at a rate of 4 – 5% in 2018.

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1.1.3. Penetrating the Chinese Outbound Tourism Market

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1.1.4.TripAdvisor Travel Trends for the Silk Road 2017

In absolute terms, the most researched Silk Road country by global travelers on TripAdvisor in 2016 was Italy, which was also the key source market for
research of Silk Road countries in the same year.

I.THE GLOBAL RESEARCH TRENDS


Top 10 in Researched Silk Road Countries & Nationalities Researching the Silk Road:

TripAdvisor Traveler’s Choice – on the Rise of 2016:

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Highest-rated Silk Road countries, based on TripAdvisor bubble rating (out of 5) in 2016:

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II.UNDERSTANDING THE TRAVEL CONSUMER

planning, as well as their booking behavior and how much they spend:

$3,401 – Is the average amount (in USD) spent on trips by travelers in the previous 12 months

74% Of travelers begin by researching & choosing their destination


16% - Of those who don’t start with their destination; follow the below:
42% Start by looking at or booking flights
30% Start by looking at or booking accommodation
12% Just travelled to their destination

Average annual travel spend by travelers from the Silk Road countries listed below (in USD):

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III.THE SILK ROAD – CONSUMER SURVEY

from the survey are:

Tourist Visas:

47% of travellers would be more likely to travel to this region, if they could obtain one single tourist visa to travel to Kazakhstan, Kyrgyzstan, Tajikistan
and Uzbekistan

Travelling Preferences:

46% - would visit the Silk Road as part of a tour


39% - would travel with family
29% - would go with friends
21% - would go as a solo traveller

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IV.THE SILK ROAD – CONSUMER EXPERIENCES

thousands of kilometres of ancient routes

61% Were interested in exploring the ancient Silk Road cities


58% Were interested in visiting UNESCO World Heritage Sites on the Silk Road
44% Were interested in trying local Silk Road gastronomy
39% Were interested in attending local festivals and events
39% Were interested in visiting art galleries and museums
29% Were interested in visiting some of the oldest wine regions in the world
16% Were interested in travelling with nomads and staying in a yurt
11% were interested in hiking in the Pamir mountains – some of the world’s highest mountain peaks

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1.1.5.UNWTO Sustainable Development Goals Overview

Sustainable Development Goals (SDGs).

transformative, universal and integrated.


−Announcing the 17 Sustainable Development Goals; like never before the world leaders have pledged common action and endeavor across such a broad

pursuit of global development and of "win-win" cooperation which can bring huge gains to all countries and all parts of the world.

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Sustainable Development Goals Index 2017

It allows the index to assess the current situation of the countries, in terms of the progress of the goals of sustainable development goals related to other
countries, and occupies the UAE ranked No. 77 in the world (out of 157 countries).

by the goals of sustainable development, similar to a large extent, even if varied methodology.

provide a report card for tracking SDG progress and ensuring accountability.

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1.1.6.Tourism & the Sustainable Development Goals - Journey to 2030

As one of the fastest growing economic sectors in the world, tourism is increasingly recognized as a vital contributor to job and wealth creation,
environmental protection, cultural preservation and poverty alleviation.
A well-designed and managed tourism sector can help preserve the natural and cultural heritage assets upon which it depends, empower host
communities, generate trade opportunities, and foster peace and intercultural understanding.

IV. Shaping the journey towards 2030


V. Recommendations

I.THE SDGS IN PUBLIC POLICY – MAKING TOURISM GOVERNANCE ‘FIT FOR PURPOSE’

and Policy Support (MAPS) country roadmaps has demonstrated that public reporting on the SDGs recognizes the value of tourism not only as a driver

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Tourism is most commonly mentioned in relation to SDGs 8, 12 and 17 in Voluntary National
Reviews on the SDGs

Policymakers widely recognize tourism’s contribution to the SDGs:


41 out of 64 (VNRs) mention tourism. SDGs 8, 12 & 17, on ‘Decent Work and Economic Growth’, ‘Responsible Consumption & Production’ & ‘Partner-
ships for the Goals’, respectively, appear as having the strongest link with tourism.

Active engagement of tourism policy-makers in national SDG processes is indispensable:


Only 13 of the 41 VNRs mentioning tourism reported involvement of tourism policymakers in national SDG planning, suggesting that they may not be

Public policy needs coherent dialogue among all stakeholders:

other tourism stakeholders is quintessential for policy coherence. Given the integrated nature of the SDGs, the various interrelations allow for combined

Challenges and threats in tourism require urgent policy measures:


While recognizing tourism’s value in advancing and even accelerating implementation and achievement of the SDGs, both the VNRs & the MAPS
country reports have also raised important concerns about some of tourism’s most pressing challenges and threats that could slow down or even

Policymakers must encourage and support the tourism private sector:

incentivize small and large companies to develop business models that foster inclusive green growth – in particular in those areas where voluntary action

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II.THE SDGS & THE PRIVATE SECTOR – THE BUSINESS CASE FOR THE GOALS

destinations management companies, technology companies and many more. Given that every tourism destination relies on a well-functioning society, a
healthy environment and a stable economy, the private sector has a large role to play in ensuring all the conditions.

Since many CSR activities are related to the business case for sustainability, companies are most likely to engage on SDGs where they can also improve

include more drastic measures along the entire tourism value chain.

travel and tourism businesses and destinations can measure and monitor their progress or contribution towards the SDGs.

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III.NEW WAYS OF FINANCING SUSTAINABLE TOURISM FOR SDG SUCCESS

experienced a reverse trend. Some donor countries, however, are becoming increasingly aware of tourism’s potential to drive development and use the

increased ODA and AfT disbursements to the sector.

and threats deserve special attention from donor countries when supporting their partners through tourism. At the same time, tourism decision-makers
should ensure
that tourism initiatives are fully in line with the priorities of donor countries.

Program of the 10YFP, for instance, can be powerful means through which tourism authorities can channel further resources to tourism. Public-private

er’s in achieving the SDGs.

mobilize and blend public and private resources in a way that aligns investments with the SDGs.

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IV.Shaping the journey towards 2030

To unlock tourism’s full potential towards achieving the SDGs, the sharing of knowledge and good practices between all stakeholders – governments,
businesses, the UN system, the donor community, academia and civil society – will be vital for the long road ahead.

Cooperate with other line ministries and the private sector to fully explore and take advantage of tourism’s interlinkages with other sectors and indus-

regard to its contribution to people, the planet, prosperity and peace.

Derive from placing the SDGs at the core of business models and practices. While current Corporate Social Responsibility (CSR) activities support the

should evolve their concept of CSR towards incorporating SDGs into the whole of its planning and operations.

Resource mobilization should go beyond traditional development cooperation, encompassing publicprivate

engagement with the 10YFP Sustainable Tourism Programme and trade-related technical assistance frameworks, as well as the design of National
Tourism Export Strategies can be instrumental to leveraging funding for tourism.

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V.Recommendations

International

Tourism Private Development Community


Tourism Policy Financing Of Tourism
Sector & Global Tourism

Stakeholders

Participate in the design of Share experiences, good Align development Support the efforts of all
national SDG strategies practices and lessons learned cooperation with the needs & tourism stakeholders and
among tourism companies priorities of developing ensure that countries and the
countries private sector can maximize
their impact
Devise more inclusive tourism
policies Continue investing in people,
technologies and ICT Promote tourism as a priority
sector for sustainable Build closer dialogue with
development at the country global development partners
Design and implement a
level from UN System, including
National Tourism Export Increase local purchasing of
UNWTO, UNDP and other
Strategy goods and services along the
International Organizations
tourism value chain
Identify the SDGs & thematic
areas that are most relevant
Assess and monitor tourism’s
for donor countries & Strengthen public-private &
contribution & commitment Engage in the Sustainable
develop tourism projects & multi-stakeholder
to the SDGs Tourism Program of the
initiatives partnerships to reinvigorate
10YFP
the means of implementation
for the SDGs through tourism
Enhance statistical capacity-
Include innovative financing
building Measure and monitor the
mechanism in resource
impact of tourism related
mobilization efforts for Ensure effective cooperation
sustainable tourism among all stakeholders,
business activities on the
Build capacity and create including government at the
SDGs
incentives for private sector
national, sub-national and
research and development
Design and implement local level, the private sector,
incentives, smart subsidies destinations & communities,
Promote high-quality
and policies to increase the understanding
education and vocational
of the cross-cutting impacts
Training
of different activities across
Strengthen inclusive growth
the tourism value & supply
opportunities by maximizing
chains
Raise awareness of the local production in the supply
business opportunities chain, removing barriers to
created by the SDGs trade

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1.2. World Travel & Tourism Council (WTTC)

1.2.1. WTTC UAE Economic Impact 2017

1.2.2. WTTC Middle East Economic Impact 2017

1.2.3. WTTC World Economic Impact 2017

1.2.4. Managing Overcrowding in Tourism Destinations 2017 NEW

NEW

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1.2.1.WTTC ECONOMIC IMPACT 2017 UAE SUMMARY REPORT

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BUSINESS VS LEISURE TRAVEL & TOURISM
Leisure travel spending (inbound and domestic) generated 77.4% of direct Travel & Tourism GDP in 2016 (AED115.0bn) compared with 22.6% for
business travel spending (AED33.6bn).

DOMESTIC VS FOREIGN TRAVEL & TOURISM


Domestic travel spending generated 26.1% of direct Travel & Tourism GDP in 2016 compared with 73.9% for visitor exports (i.e. foreign visitor spending
or international tourism receipts).

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WORLD RANKING (OUT OF 185 COUNTRIES)
Relative to importance of Travel & Tourism’s total contribution to GDP

134
GROWTH
2017 Forecast

T&T T&T
Direct Total
T&T T&T
Contribu Contribu T&T
Direct Total
tion to tion to Capital Visitor
UAE Ranking 2017 Contribu Contribu
Employ Employ Invest Exports
tion to tion to
ment ment ment
GDP GDP
‘000 ‘000
Jobs Jobs
Absolute Rank 21 26 45 55 19 11
Contribution
2016 $18.7bn $43.3bn 317.3 617.4 $7.1bn $29.9bn
Relative Rank 52 70 56 81 76 99
Contribution
2016 % Share 5.2 12.1 5.4 10.4 7 8.1
Rank 136 134 117 123 166 146
Real Growth
2017 %
3.2 2.9 2.3 1.8 -0.16 3.3
Growth
Rank 65 68 95 103 1 78
Long Term
Growth %
2017-2027 Growth 5.1 4.9 2.4 2.0 11 5.0
pa

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1.2.2.WTTC ECONOMIC IMPACT 2017 MIDDLE EAST SUMMARY REPORT

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BUSINESS VS LEISURE TRAVEL & TOURISM
Leisure travel spending (inbound and domestic) generated 79.5% of direct Travel & Tourism GDP in 2016 (USD122.5bn) compared with 20.5% for
business travel spending (USD31.5bn).

DOMESTIC VS FOREIGN TRAVEL & TOURISM


Domestic travel spending generated 46.0% of direct Travel & Tourism GDP in 2016 compared with 54.0% for visitor exports (i.e. foreign visitor spending
or international tourism receipts).

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WORLD RANKING (OUT OF 184 COUNTRIES)
Relative to importance of Travel & Tourism’s total contribution to GDP

T&T T&T
Direct Total
T&T T&T
Contribu Contribu T&T
Direct Total
MIDDLE EAST Ranking tion to tion to Capital Visitor
Contribu Contribu
2017 Employ Employ Invest Exports
tion to tion to
ment ment ment
GDP GDP
‘000 ‘000
Jobs Jobs
Absolute Rank 8 8 9 9 4 5
Contribution $49.6b
2016 $81.4bn $227.1bn 2,356.9 5,730.7 $83.2bn
n
Relative Rank 6 6 8 10 3 7
Contribution
2016 % Share 3.3 9.1 3.1 7.6 7.2 8
Rank 4 4 8 4 1 7
Real Growth
2017 %
4.5 5.2 2.1 2.7 7.2 5.1
Growth
Rank 6 5 8 6 1 7
Long Term
Growth %
2017-2027 Growth 4.6 4.8 2.2 2.4 6.4 5.4
pa

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1.2.3.WTTC ECONOMIC IMPACT 2017 WORLD SUMMARY REPORT

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BUSINESS VS LEISURE TRAVEL & TOURISM
Leisure travel spending (inbound and domestic) generated 76.8% of direct Travel & Tourism GDP in 2016 (USD3,822.5bn) compared with 23.2% for
business travel spending (USD1,153.6bn).

DOMESTIC VS FOREIGN TRAVEL & TOURISM


Domestic travel spending generated 71.8% of direct Travel & Tourism GDP in 2016 compared with 28.2% for visitor exports (i.e. foreign visitor spending
or international tourism receipts).

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1.2.4.Coping with Success - Managing Overcrowding in Tourism Destinations 2017

Travel & Tourism (T&T) is one of the world’s fastest-growing sectors. In 2017, T&T will contribute nearly $7.9 trillion to the global economy, or 10.2
percent of global gross domestic product (GDP).
With the world getting richer—one billion more people will be in the global middle class by 2030—and travel becoming ever more accessible, T&T will
continue to grow. More places will likely be threatened by their own popularity in environmental, social, or aesthetic terms.

of concerns about environmental damage.

and Koh Khai Nui.


So it is fair to ask: Could overcrowding threaten more of the world’s natural and cultural wonders?

curiosity that is the basis of tourism. Still, industry players—and travelers themselves—widely acknowledge the problem.

I. Five Challenges Associated with Overcrowding


II. Best Practices in Tourism Management
III. Matching Solutions to Problems: Tactics for Addressing Overcrowding

I. - FIVE CHALLENGES ASSOCIATED WITH OVERCROWDING


Overcrowding is not exactly alike in any two destinations. We focus on 5 types of problems associated with tourist overcrowding; some places endure
two or more of these problems at the same time, but once localities determine their most important issues, they can select the most suitable solutions:

1. - Alienated local residents:


Local residents voice a number of concerns about tourism, including rising rents, noise, displacement of local retail, & changing neighborhood character. Local

2. - Degraded tourist experience:

3. - Overloaded infrastructure:
Given that the infrastructure used by tourists is shared with essential non-tourism activities, such as commerce, hygiene, and commuting, visitors add to the
wear and tear and create challenges in terms of energy consumption and waste management
4. - Damage to nature:
Visitors also add wear and tear to the natural environment of a destination in the form of pollution, overuse of natural resources such as water and forests,
poor waste management, and harm to wildlife, including endangered species

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II.BEST PRACTICES IN TOURISM MANAGEMENT
Overcrowding is easier to prevent than to recover from. Good tourism management practices and stringent planning are key to the sustainable develop-
ment of tourism. Our research and interviews with tourism experts highlighted the following four best practices— regardless of whether a destination is
facing overcrowding.

1. - Build a comprehensive fact base and update it regularly:

2. - Conduct rigorous, long-term planning to encourage sustainable growth:

a solid fact base are more likely to achieve sustainable growth and mitigate—or even prevent—overcrowding.
3. - Involve all sections of society—commercial, public, and social:

other formal mechanisms to work with stakeholders, including local communities, to discuss problems and devise solutions.
4. - Find new sources of funding:

infrastructure and sustainability.

III.MATCHING SOLUTIONS TO PROBLEMS: TACTICS FOR ADDRESSING OVERCROWDING

execute practical actions, both for the long and the short term. Among the possibilities:

1.Smooth visitors over time:

2.Spread visitors across sites:


Spreading visitors geographically can help distribute tourists more evenly across residential & under-visited areas & thwart bottlenecks in overcrowded locations.
3.Adjust pricing to balance supply and demand:

visitors, it also raises considerations of elitism and the ability of domestic tourists to access their own heritage.
4.Regulate accommodation supply:
Some destinations place direct controls on the supply of tourism accommodation—including beds in both hotels and short-term rentals.
5.Limit access and activities:
When overcrowding reaches, a critical stage, the tactics above may not be enough to mitigate or recover from it. As such, some destinations are limiting or even
banning certain tourist activities.

tourism authorities, hospitality providers, airlines, nongovernmental organizations (NGOs), academics, and think tanks by WTTC.
Each destination needs to develop, implement, and monitor its own set of solutions, but it need not start from scratch.

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1.3. WORLD ECONOMIC FORUM

1.3.1. Travel & Tourism Competitive Report 2017 – Overview

1.3.2. Global Competitiveness 2017-2018 NEW

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1.3.1 Travel & Tourism Competitiveness Report 2017

The 2017 edition of the Travel & Tourism Competitiveness Report features the latest iteration
of the Travel & Tourism Competitiveness Index (TTCI). Published biennially, the TTCI
benchmarks the T&T competitiveness of 136 economies; whilst compared to 2015 there were
141 economies.

The T&T Competitiveness Index 2017 Framework comprises of 4 sub-indexes, 14 pillars, and
90 individual indicators; whilst comparing to 2015 there are few changes in the indicators,
there are 5 indicators which have been rephrased for the year of 2017.

TTCI Methodology

T TCI 2017 METHODOLOGY


34% Execu ve Opinion Survey

66% Quan ta ve Data from Interna n Sources

These 14 pillars are calculated on the basis of:

Data derived from the Executive Opinion Survey (Survey) – 31 indicators


Quantitative data from other international sources – 59 indicators

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I. United Arab Emirates Ranking

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II. T&T Competitive Indicators Analysis
Comparative Scenario of T&T Competitiveness Report - UAE
Years No. of Economies Middle East Economies Worldwide Economies Score
2011 139 1 30 4.7
2013 140 1 28 4.8
2015 141 1 24 4.4
2017 136 1 29 4.5

The change amongst the 14 pillars and its 90 indicators are as follow:
Change 14 Pillars 90 Indicators
9 35
4 29
= 1 18
NA - 3
New Indicators - 5

UAE Variation of Indicators Ranking out of 90 indicators:


Ranks No. of Indicators
1 11
2 3
3 4

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HIGHLY – RISK 8 INDICATORS
2017 Change 2015
Highly Risk Indicators 8 Indicators Rank/ Rate Rank/
136 141
1.6 Cost to deal with construction permits % construction cost ** 71 - 6
International Source - World Bank/International Finance Corporation, Doing Business 2017 Equal 77
Opportunity for All

1.8 Time to start a business days ** 38 - 8


International Source - World Bank/International Finance Corporation, Doing Business 2017 Equal 46
Opportunity for All

1.9 Cost to start a business % GNI per capita ** 35 - 62


International Source - World Bank/International Finance Corporation, Doing Business 2017 Equal 87
Opportunity for All

3.3 Access to improved drinking water % pop. ** 43 42 - 1


International Source -The World Health Organization, Global Health Observatory Data Repository

6.6 Country brand strategy rating ** 114 19 - 95


International Source - Bloom Consulting Country Brand Ranking

8.1 Ticket taxes and airport charges ** 60 35 - 25


International Source - International Air Transport Association

12.1 Hotel rooms number/100 pop. ** - 42 8- 34


International Source - UNWTO

14.5 Cultural & entertainment tourism digital ** 94 10 - 84


International Source - Bloom Consulting Country Brand Ranking

** - The indicators’ score has been derived from International Sources

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III. Direct Tourism Indicators Analysis
The 10 Direct Tourism Indicators change and variation in rankings:
Change 10 Indicators
3
2
= 3
NA -
New Indicators 2
Out of 10 direct tourism indicators; there are 4 indicators who have been ranked as 1st.

The Detailed 10 Direct Tourism Indicators Mentioned Below:


The Direct Tourism Indicator Comparative Index framework 2017 Change 2015
10 Indicators Rank/ Rate Rank/
136 141
6 PRIORITIZATION OF TRAVEL & TOURISM 31 39
6.1 Government prioritization of T&T industry* 1 = 1
6.2 T&T government expenditure % government budget ** - 35
31
WTTC
6.3 Effectiveness of marketing & branding to attract tourists* 1 = 1
6.4 Comprehensiveness of annual T&T data 0–120 (best) **- 139
134
UNWTO
6.5 Timeliness of providing monthly/quarterly T&T data 0–21 104
95
(best) ** - UNWTO
6.6 Country brand strategy rating 1 –10 (best) ** -BC 114 19 - 95
12 TOURIST SERVICE INFRASTRUCTURE 27 26
12.1 Hotel rooms number/100 pop. ** - UNWTO 42 8- 34
12.2 Quality of tourism infrastructure* 1 NEW
12.3 Presence of major car rental companies ** - WWW 1 = 1
12.4 Automated teller machines number/thousand adult pop **- NEW
39
WB
6.6 & 12.1 are the Highly-Risk Indicators

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IV. Middle East Ranking

V. Worldwide Ranking

Top 10 Rankings:
Spain tops the 2017 edition of the TTCI global rankings for the second time, followed by
France (2nd), Germany (3rd), Japan (4th, gaining five places), the United Kingdom (5th), the
United States (6th, losing two places), Australia (7th), Italy (8th), Canada (9th, up one) and
Switzerland (10th, losing four places).

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1.3.2.GLOBAL COMPETITIVENESS REPORT 2017-2018 OVERVIEW

at a time of increased uncertainty and rapid transformations for the global economy. With slow and uncertain growth recoveries, the end of the

continues to be a pressing global issue.

- 3 sub-indexes,
- 12 pillars, and
- 114 individual indicators.
- Considering 137 economies in the report

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I.Global Competitiveness Report Methodology

- Data derived from the Executive Opinion Survey (Survey) – 80/114 indicators
- Quantitative data from other international sources – 34/114 indicators

II.UAE Profile Summary

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III.Middle East Ranking

Middle East Countries Global Rank 2017 - 18 Change in Rank Global Rank 2016 - 17

UAE 17 -1 16

Qatar 25 -7 18

KSA 30 -1 29

Bahrain 44 4 48

Kuwait 52 -14 38

Oman 62 4 66

Jordan 65 -2 63

Iran 69 7 76

Lebanon 105 4 101

Yemen 137 1 138

IV.Worldwide Ranking

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V.Key Findings

economic growth and well-being? Analysis of the Global Competitiveness Index (GCI) points to 3 main challenges and lessons that are relevant for
economic progress, public-private collaboration, and policy action.

1.10 years after the crisis, the financial sector remains vulnerable.

GCI indicators of bank soundness have not recovered to pre-crisis levels; new sources of vulnerability have emerged—such as increasing private debt in
emerging economies and the growth of nonregulated capital markets—and governments have less bandwidth than they did 10 years ago to cope with

growth, but also to sustain innovation. In fact, providing adequate funds and instruments to support the most productive and innovative ideas is
essential to take advantage of the Fourth Industrial Revolution (4IR).vvv

2.More countries are able to innovate, but they must do more to spread the benefits.
Major emerging markets such as China, India, and Indonesia are becoming centers for innovation, catching up with advanced economies. However, they

3.Both labor market flexibility & worker protection needs to ensure shared prosperity in the 4IR era.

As globalization and rapid technological progress continue to test the ability of labor markets to reallocate

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1.4. MASTER CARD REPORTS

1.4.1. Global Muslim Travel Index Report 2017

1.4.2. Global Destination Cities Index 2017

1.4.3. Muslim Millennial Travel Report-2017 NEW

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1.4.1.Global Muslim Travel Index 2017 Overview

destinations and 82 non-OIC destinations


• UAE ranked as 2nd in the Global Muslim Travel Index 2017 with the score of 76.9
• Muslim travel market is one of the most lucrative and rapidly growing market segments in the travel industry, it holds great potential for destinations,
businesses and travel-related entities.
• It is also one of the world's highest spending tourist markets, wherein the travel expenditure by Muslim travelers is expected to reach USD 220 billion
by 2020.

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I.Global Muslim Travel Index Framework

GMTI 2017 looks at 4 key strategic areas - Access, Communications, Environment and Services –
which have been further divided into 11 sub-criteria as shown below.

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II.Global Muslim Travel Index Ranking

TOP 10 ORGANIZATION OF THE ISLAMIC CONFERENCE (OIC) DESTINATIONS

TOP 10 NON – ORGANIZATION OF THE ISLAMIC CONFERENCE (OIC) DESTINATIONS

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III.10 Pressing Questions Facing the Muslim Travel Segment

While the future remains optimistic, here are 10 key questions to help the Muslim travel industry better prepare for these changes:
1. Evolving Industry
2. Technology and Innovation
3. Segmentation Conundrum

5. Transnational Muslim Consumers


6. Country Marketing
7. Regional Collaboration/Marketing
8. Access to Markets

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1.4.2.Global Destination Cities Index 2017 Overview

Around the world, tourism is driving the economic engines of growth and development. Since 2009, international travel and spending by overnight visitors
to cities have grown faster than real GDP. To help cities understand key drivers and unlock the value of tourism, MasterCard today released its annual
MasterCard Destination Cities Index.

year, the in-depth analysis also provides a forecast for growth in 2017, insight on the fastest growing destination cities, and a deeper understanding of why
people travel and how they spend around the world.

I. Top 20 Destinations - Overnight International Visitors in 2016 (Millions)


II. Expenditure breakdown at Destination
III. International Visitor Spending Globally
IV. Fastest Growing Destination - International Overnight Visitors (2009- 16)
V. Top Destination Cities in Middle East & Africa
V.1. Overnight International Visitor Spending in Middle East & Africa
V.2. Fastest Growing Destination in Middle East & Africa
VI. Top destination in Europe
VI.1. Overnight International Visitor Spending in Europe
VI.2. Fastest Growing Destination in Europe

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I. Top 20 Destinations - Overnight International Visitors in 2016 (Millions)

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II. Expenditure breakdown at Destination

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III. International Visitor Spending Globally
Since 2009, more than half of the top destination cities reported an increase in spend by overnight visitors consistent with or greater than GDP growth.

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IV.Fastest Growing Destination - International Overnight Visitors (2009- 16)

destination leaders

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V.Top Destination Cities in Middle East & Africa

V.1. Overnight International Visitor Spending in Middle East & Africa

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V.2.Fastest Growing Destination in Middle East & Africa

VI. Top destination in Europe

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VI.1. Overnight International Visitor Spending in Europe

VI.2. Fastest Growing Destination in Europe

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1.4.3.Muslim Millennial Travel Report-2017 Overview

Between 2015 and 2060, the Muslim demographic is expected to grow more than twice as fast as the overall world population1. While the world’s popula-
tion is projected to grow at 32% in the coming decades, the number of Muslims is expected to increase by 70% – from 1.8 billion in 2015 to nearly 3 billion
in 2060. In terms of consumer spending, in 2015 the global Islamic economy generated approximately US$ 1.9 trillion in food and lifestyle sector expendi-
ture. Further, this market is expected to grow to US$ 3 trillion by 20212.

I. Muslim Travel Market Potential


II. Muslim Millennial Landscape
III. Muslim Millennial 3 A’s

V. 10 Questions Facing the Muslim Millennial Traveler (MMT) Market

I.Muslim Travel Market Potential

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II.Muslim Millennial Landscape

MMTs as a subset of Millennial travelers are assumed to be equally, if not more, a distinct group of travelers who have special requirements, interests and
decision-making styles when planning their travels. A number of terms are commonly used to describe Muslim Millennials, including Gen M, Mipsterz
(Muslim Hipsters) and GUMmies (Global Urban Muslim Consumer).

To evaluate the Muslim Millennial market and its potential for tourism destinations, tour operators, airlines, and the tourism and hospitality industries, this
report looks at the following:
- Investigate the tripographic and social-demographic of the MMT
- Develop an understanding of the MMT’s trip planning and travel decision making process
- Ascertain the key tourism experience attributes and activities sought by Muslim Millennials whilst travelling

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III.Muslim Millennial 3 A’s

MMT trends can be characterized into the

their brands are aligned with the 3As to best equip their facilities to this emerging segment.

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IV.Muslim Millennial Traveler Profile

the trip itself, and when sharing their experiences with others; "Get Inspired", "Go" and "Inspire Others" phases.

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V.10 Questions Facing the Muslim Millennial Traveler (MMT) Market

1. Culture and Heritage Preservation


With MMTs seeking more authentic experiences revolving around Islamic values, how can tourism agencies continue to preserve their culture and heritage
against the backdrop of rising modernity?

2. Staying Relevant with Social Media


MMTs value the ability to share their stories with others. How can the industry continue to evolve its services and stay relevant with the ever-changing
social media landscape and its dynamic MMT users?

Beyond traditional promotional campaigns and advertisements, MMTs heavily depend on online reviews, blogs and social media before making their travel
purchasing decisions. How can agencies and service providers seamlessly integrate these new media promotional tools in their existing marketing
campaigns?

are more familiar with standard tour packages and premium rates for exclusive travel experiences.

5. Availability of Halal Food

and tourism vicinities.

6. Advance Planners and Information Seekers

information to be made available to the MMTs in advance

7. Water Matters

service providers must ask themselves how best to satisfy this need.

8. Concerns of Female MMTs


Female MMTs are independent and adventurous, but are concerned about personal safety and security whilst travelling. Destination managers and industry
must provide this assurance to female MMTs, especially female solo travelers.

9. From Ummah to e-Ummah

for MMTs to stay connected and accessible both physically and virtually.

Even though MMTs see themselves as global citizens, they like to savor local cultures and way of life. Marketers must curate travel experiences that
showcase destinations' hidden gems and places that are uniquely local.

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1.5 EUROMONITOR INTERNATIONAL REPORTS

1.5.1. 2017 Top 100 Cities Destinations Overview

1.5.2. The Future of an Industry 2017 NEW

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1.5.1.2017 Top 100 Cities Destinations Overview

Euromonitor International is pleased to release its annual Top City Destinations Ranking, covering 100 of the world’s leading cities in terms of international
tourist arrivals.

European cities dealt with the turbulence surrounding them.

CITY DESTINATIONS RANKING (1 – 20)

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MIDDLE EAST & AFRICA REGION

MIDDLE EAST & AFRICA REGION CITY - DUBAI

- Dubai is the top performer city in the Middle East & Africa region
- Dubai is ranked as 7th with a continuous steady growth in 2015

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MIDDLE EAST & AFRICA REGION WINNER & LOSER

WINNER:
Mecca

- Saudi government has launched the Post-Umrah Program, an initiative that allows pilgrims to convert their

LOSER:
Tunisia
- Declined on hard times with multiple terrorist attacks, including the shooting on the beach of a resort
in Sousse in June 2015

Sharm El Sheikh

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1.5.2.The Future of an Industry Overview – Business Travel

Business travel, like many other markets, is ripe for disruption. We are already seeing signs of change with the sharing economy, and budget brands such as
low-cost airlines and budget hotels muscling in. Stephen Kaufer, CEO of TripAdvisor, pointed to a future where business travel could become highly

through big data and applying algorithms.

business model and opportunities for innovation in automation.

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travel industry, in turn disturbing the workplace and, by extension, changing the needs of business travelers.
- Changing face of business travelers:

norms will fall by the wayside. Generation Y will pave the way for ubiquitous digital connectivity.
- Is business travel broken?:

“for business” solutions muscle-in.


- How to play in a connected world:

- Don’t believe the hype:

to lose sight of providing a seamless, enhanced user experience at each touchpoint.

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1.6 BLOOM CONSULTING REPORTS

1.6.1. Country Brand Ranking 2017-2018 Tourism Edition Overview

1.6.2. Digital Country Index 2017 – Overview NEW

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1.6.1. Country Brand Ranking 2017- 2018 Tourism Edition Overview

objectives and dimensions.

as indicators of economic impact

data can both assess the current economic impact of tourism within a country, as well as predict its future success in the industry

Bloom Consulting – Country Brand Ranking Framework


Bloom Consulting derives its annual Country Brand Ranking © from our proprietary algorithm, only considering tourism-related
variables in its formation.

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1.6.2. Digital Country Index 2017 Overview

search volume in each of the 5 Dimensions.


Social Media is excluded from the analysis, as this Index measures the “consequence”, not the “cause” of what has triggered the proactive interest

toward any given Country.

Digital Country Index Framework


As displayed below, each Dimension is comprised of 19 macro clusters of information called “Brandtag families”. Inside of each “Brandtag family”

Japanese, Portuguese, Russian, and Chinese), which result in approximately 799 million valid search results for 2016.

Digital Country Index Methodology

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UAE Scoreboard - Digital Country Index

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1.7. COLLIERS INTERNATIONAL REPORTS

1.7.1. Culture and Heritage Travel April-2017-MENA NEW

1.7.2. Retail Tourism Experiential Travel April-2017-Hotels NEW

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1.7.1. Culture and Heritage Travel April-2017-MENA

Cultural Tourism is multifaceted, and involves sharing the destination country’s local traditions, history, art, music, cuisine, literature and religion.

participating in cooking classes, dances and going on a safari.

Cultural Travel Motivations:

Key Attractions for Culture Tourists

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Cultural Attractions in GCC Countries

Culture & Heritage Tourism Initiatives

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Benefits of Culture Tourism

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• • •


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1.8. UAE & Sharjah TSA 2015

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UAE TSA 2015

UAE TSA 2015 2015 2012 Changes


The Full Economic Impact of Tourism, including
tourism capital investment & indirect /induced AED 147bn AED 107bn AED 40bn
impacts tallied as;

Tourism’s total impact as UAE GDP; 10.8% 7.6% 3.2%


Tourism’s total impact as UAE’s non-oil GDP; 14.1% 12.7% 1.4%
Since 2010, Since 2007,
47% -
Direct tourism GDP in the UAE has expanded as; 85% - AED 38% - AED
AED 8bn
61bn 53bn
The vast majority of the tourism industry is
AED 106bn AED 76bn AED 30bn
supported by inbound visitors who spent as;
Tourism-related capital investment, including
AED 25bn AED 19bn AED 6bn
construction and equipment tallied as;

Tourism directly sustains to the UAE 291,000 jobs 263,000 jobs 28,000
employment / 5.4% / 5.4% jobs

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Sharjah TSA 2015

Sharjah TSA 2015 2015 2012 Changes


The Full Economic Impact of Tourism in Sharjah,
including tourism capital investment & indirect AED 9bn AED 7bn AED 2bn
/induced impacts tallied as;
Tourism contribution of Sharjah GDP; including
direct, indirect, and induced impacts. The direct 8.8% 8.5% 0.3%
industry alone represents 3.7% of Sharjah GDP.

Since 2010, Since 2007, 34.6% -


Direct tourism GDP in the Sharjah has expanded as; 54% - AED 19.4% - AED AED
3.8bn 3.5bn 0.3bn
The majority of the Sharjah tourism industry is AED
AED 6.6bn AED 4.5bn
supported by domestic UAE visitors who spent as; 2.1bn
Tourism-related capital investment, including AED
AED 1.6bn AED 1.3bn
construction and equipment tallied as; 0.3bn
Tourism directly sustains to the Sharjah
18,482 jobs 19,019 jobs 537 jobs
employment

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1.9 Competitiveness Report

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1.9. UAE Competitiveness Report (17 International Reports)

REPROTS YEAR RANKING ARAB TOTAL 1ST GLOBAL TOTAL


– UAE COUNTRY RANKINGS COUNTRY COMPONENTS
RANKING RANKED
Doing Business 2018 21 1.UAE – 21 190 New Zealand 11 sub-indexes
– by The World Bank ▲+5 2. Turkey – 60

World Competitiveness Yearbook 2017 10 1. UAE – 10 63 Honk Kong 333 criteria


– by IMD Business School ▲+5 2. Qatar - 17 measuring
different facets.
World Happiness Report 2017 21 1.UAE – 21 155 Norway 8 variables
– by UN ▲+7 2. KSA – 37

The Travel & Tourism Competitiveness 2017 29 1.UAE – 29 141 Spain 14 Pillars
Report ▼-5 2. Bahrain – 60
– by World Economic Forum
The Global Innovation Index 2017 35 1. UAE – 35 127 Switzerland 81 indicators
– by INSEAD ▲+6 2. Turkey - 43
Best Countries 2017 22 1.UAE – 22 80 Switzerland 9 Categories
– by US News 2. KSA -32
Sustainable Development Goal Index 2017 77 1. Algeria – 64 157 Sweden 63 indicators -
– by the Sustainable Development Solutions ▼-22 2. UAE - 77 Non-OECD
Network (SDSN) and the Bertelsmann 77 indicators -
Stiftung OECD Countries
The Human Capital Report 2017 45 1. UAE - 45 130 Norway 21 indicators
– by World Economic Forum ▲+24 2. Bahrain - 47
Edelman Trust Barometer 2017 5 1.UAE – 5 28 India
– by Edelman Research

Economic Freedom Index Report 2017 8 1.UAE – 8 180 Hong Kong 4 Pillars
– by The Heritage Foundation ▲+17 2. Bahrain – 44
The Legatum Prosperity Index 2017 39 1.UAE – 39 149 Norway 9 sub-indexes
– by Legatum Institute ▲+2 2. Qatar – 47
Country Brand Ranking 2017-18 44 1.UAE – 44 193 USA 4 Variables
– by Bloom Consulting ▼-2 2. KSA - 49
The Global Competitiveness Report 2017-18 17 1.UAE – 17 137 Switzerland 12 Pillars
– by World Economic Forum ▼-1 2. Qatar - 25
The Global Gender Gap Report 2016 124 1. Qatar – 119 144 Iceland 4 sub-indexes
– by World Economic Forum –0 2. UAE - 124

The Global Enabling Trade Report 2016 23 1.UAE – 23 136 Singapore 7 Pillars
– by World Economic Forum ▼-7 2. Bahrain – 42
The Global Information Technology 2016 26 1.UAE – 26 139 Singapore 9 Pillars
Report ▼-3 2. Bahrain – 28
– by World Economic Forum
The Financial Development Report 2012 26 1. Kuwait – 21 62 Honk Kong 7 Pillars
– by World Bank 2. Bahrain -25
3. UAE – 26

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1.10. GLOBAL INNOVATION INDEX REPORT 2017 – OVERVIEW

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Executive Summary

promote long-term output growth, improved productivity, and job growth.


• It helps to create an environment in which innovation factors are continually evaluated. It provides a key tool and a rich database of detailed metrics for

• Recognizing the key role of innovation as a driver of economic growth and prosperity, and the need for a broad horizontal vision of innovation applicable
to developed and emerging economies, the GII includes indicators that go beyond the traditional measures of innovation such as the level
of research and development.

GLOBAL INNOVATION INDEX FRAMEWORK

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United Arab Emirates Ranking

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Middle East Ranking

performance by repeatedly ranking as # 1 in the Arab world

Worldwide Ranking

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United Arab Emirates
s

304
I: Country/Economy Pr

Key indicators 4.2 Investment ..........................................................................................................47.3 33


Population (millions) .............................................................................................................9.3 4.2.1 Ease of protecting minority investors*..............................................75.0 9
GDP (US$ billions) ..............................................................................................................375.0 4.2.2 Market capitalization, % GDP ..................................................................52.9 30
GDP per capita, PPP$ .................................................................................................... 67,616.9 4.2.3 Venture capital deals/bn PPP$ GDP.......................................................0.1 28
Income group..........................................................................................................High income 4.3 Trade, competition, & market scale .....................................................73.9 25
Region.....................................................................................Northern Africa and Western Asia 4.3.1 Applied tar rate, weighted mean, %..................................................2.8 67
4.3.2 Intensity of local competition† ..............................................................81.7 8
Score 0–100
4.3.3 Domestic market scale, bn PPP$ .......................................................667.2 31
or value (hard data) Rank
Global Innovation Index (out of 127)................................. 43.2 35
Innovation Output Sub-Index ..................................................................................28.5 56
5 Business sophistication ..............................47.8 25
5.1 Knowledge workers ......................................................................................58.1 26
Innovation Input Sub-Index .....................................................................................58.0 23
5.1.1 Knowledge-intensive employment, % ..........................................36.1 33
Innovation E cy Ratio.........................................................................................0.5 104
5.1.2 Firms o ering formal training, % rms ............................................... n/a n/a
Global Innovation Index 2016 (out of 128) ..............................................................39.4 41
5.1.3 GERD performed by business, % of GDP ............................................0.4 39
5.1.4 GERD by business, % ...........................................................74.3 4
1 Institutions ....................................................80.6 25
5.1.5 Females employed w/advanced degrees, % total...................... n/a n/a
1.1 Political environment ...................................................................................81.9 19
1.1.1 Political stability & safety* ..........................................................................82.2 28 5.2 Innovation linkages .......................................................................................47.4 12
1.1.2 Government e ectiveness*......................................................................81.6 16 5.2.1 University/industry research collaboration†..................................58.5 24
5.2.2 State of cluster development† ...............................................................73.7 2
1.2 Regulatory environment ............................................................................82.8 22
5.2.3 GERD by abroad, %.................................................................... n/a n/a
1.2.1 Regulatory quality* ........................................................................................71.1 28
5.2.4 JV–strategic alliance deals/bn PPP$ GDP ...........................................0.1 16
1.2.2 Rule of law*.........................................................................................................60.1 37
5.2.5 Patent families 2+ PPP$ GDP .............................................0.1 68
1.2.3 Cost of redundancy dismissal, salary weeks .....................................8.0 1
5.3 Knowledge absorption ...............................................................................37.8 42
1.3 Business environment..................................................................................77.1 38
5.3.1 Intellectual property payments, % total trade ................................0.6 51
1.3.1 Ease of starting a business*......................................................................91.2 45
5.3.2 High-tech imports less re-imports, % total trade ..........................8.0 66
1.3.2 Ease of resolving insolvency*..................................................................40.6 92
5.3.3 ICT services imports, % total trade .........................................................0.6 92
1.3.3 Ease of paying taxes* ...................................................................................99.4 1
5.3.4 FDI net ows, % GDP...................................................................................2.7 67
5.3.5 Research talent, % in business enterprise .......................................60.9 10
2 Human capital & research ..........................51.0 22
2.1 Education .............................................................................................................75.6 [3]
6 Knowledge & technology outputs ...........20.9 71
2.1.1 Expenditure on education, % GDP ....................................................... n/a n/a
6.1 Knowledge creation.........................................................................................3.9 99
2.1.2 Gov’t expenditure/pupil, secondary, % GDP/cap ....................... n/a n/a
6.1.1 Patents by origin/bn PPP$ GDP................................................................0.1 114
2.1.3 School life expectancy, years.................................................................... n/a n/a
6.1.2 PCT patent applications/bn PPP$ GDP................................................0.1 62
2.1.4 PISA scales in reading, maths, & science .......................................474.3 37
6.1.3 Utility models by origin/bn PPP$ GDP ............................................... n/a n/a
2.1.5 Pupil-teacher ratio, secondary ................................................................11.2 33
6.1.4 S & technical articles/bn PPP$ GDP .....................................3.5 106
2.2 Tertiary education...........................................................................................59.1 8 6.1.5 Citable documents H index ........................................................................9.4 67
2.2.1 Tertiary enrolment, % gross....................................................................... n/a n/a
6.2 Knowledge impact ........................................................................................30.7 65
2.2.2 Graduates in science & engineering, % ............................................20.4 52
6.2.1 Growth rate of PPP$ GDP/worker, % .....................................................1.3 47
2.2.3 Tertiary inbound mobility, % ...................................................................46.9 1
6.2.2 New businesses/th pop. 15–64 ............................................................1.4 58
2.3 Research & development (R&D) ............................................................18.2 47 6.2.3 Computer software spending, % GDP .................................................0.3 37
2.3.1 Researchers, FTE/mn pop. ..................................................................2,003.4 38 6.2.4 ISO 9001 quality cer tes/bn PPP$ GDP .......................................7.7 45
2.3.2 Gross expenditure on R&D, % GDP ........................................................0.9 41 6.2.5 High- & medium-high-tech manufactures, % ............................... n/a n/a
2.3.3 Global R&D companies, avg. expend. top 3, mn $US .................0.0 43
6.3 Knowledge ....................................................................................28.1 45
2.3.4 QS university ranking, average score top 3*..................................28.9 40
6.3.1 Intellectual property receipts, % total trade .....................................0.5 23
6.3.2 High-tech exports less re-exports, % total trade ...........................0.3 95
3 Infrastructure................................................57.5 29
6.3.3 ICT services exports, % total trade ..........................................................1.7 61
3.1 Information & communication technologies (ICTs)..................78.3 23
6.3.4 FDI net ows, % GDP ...............................................................................2.3 26
3.1.1 ICT access* ..........................................................................................................81.4 23
3.1.2 ICT use* .................................................................................................................68.2 25
7 Creative outputs ..........................................36.1 47
3.1.3 Government’s online service*.................................................................89.1 13
7.1 Intangible assets ..............................................................................................45.7 55
3.1.4 E-participation* ................................................................................................74.6 32
7.1.1 Trademarks by origin/bn PPP$ GDP ...............................................11.4 101
3.2 General infrastructure ..................................................................................51.0 21 7.1.2 Industrial designs by origin/bn PPP$ GDP ....................................0.1 102
3.2.1 Electricity output, kWh/cap............................................................ 12,098.9 10 7.1.3 ICTs & business model creation† ..........................................................79.9 10
3.2.2 Logistics performance* ...............................................................................86.9 13 7.1.4 ICTs & organizational model creation† .............................................74.4 13
3.2.3 Gross capital formation, % GDP .............................................................19.7 84
7.2 Creative goods & services .........................................................................28.0 34
3.3 Ecological sustainability..............................................................................43.3 71 7.2.1 Cultural & creative services exports, % of total trade................ n/a n/a
3.3.1 GDP/unit of energy use .................................................................................8.1 68 7.2.2 National feature pop. 15–69 .................................................1.4 71
3.3.2 Environmental performance* .................................................................69.4 82 7.2.3 Global ent. & media market/th pop. 15–69 ...................................16.5 28
THE GLOBAL INNOVATION INDEX 2017

3.3.3 ISO 14001 environmental cer tes/bn PPP$ GDP ..................2.9 36 7.2.4 Printing & publishing manufactures, % ...........................................2.5 14
7.2.5 Creative goods exports, % total trade ..................................................1.6 33
4 Market sophistication .................................52.9 33
7.3 Online creativity...............................................................................................25.1 49
4.1 Credit ......................................................................................................................37.5 56
7.3.1 Generic top-level domains (TLDs)/th pop. 15–69 .....................11.2 38
4.1.1 Ease of getting credit* .................................................................................45.0 84
7.3.2 Country-code TLDs/th pop. 15–69 .........................................................5.6 47
4.1.2 Domestic credit to private sector, % GDP .......................................76.5 39
7.3.3 Wikipedia edits/mn pop. 15–69 ...........................................................4.6 68
4.1.3 Micr gross loans, % GDP .......................................................... n/a n/a
7.3.4 Video uploads on YouTube/pop. 15–69 ...........................................39.1 32

NOTES: indicates a strength; a weakness; * an index; † a survey question.


indicates that the country’s data are older than the base year; see Appendix II for details, including the year of the data, at http://globalinnovationindex.org.
Square brackets indicate that the data minimum coverage (DMC) requirements were not met at the sub-pillar or pillar level; see page 181 of this appendix for details.

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2. Hospitality Statisticaly Report

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2.1. FCSA - UAE - Hospitality Performance 2016

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About FCSA
The Federal Competitiveness and Statistics Authority (FCSA), is a UAE federal government entity created by Presidential Decree No.6 of the year
2015. The authority’s mission is to strengthen and enhance UAE’s national data and competitiveness capacities.
The FCSA is one of the official government sources FOR national statistics and is one of the government representatives on matters related to
national competitiveness. The FCSA aims at improving the UAE ranking in the global competitiveness reports by working with stakeholders on
defining and implementing reforms and polices across sectors.

TOURISM 2016

NO. CONTENT

1 Hotel Establishments Statistics 2016

2 Guests by Region Hotels& Hotel Apartments for 2016

3 Hotel Establishments Main Indicators for 2016

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Hotel Establishments Statistics 2016

Title Occupied Rate % Rooms Number Hotel Establishments

HOTELS 74% 119,105 702

5 STAR 74% 52,463 166

4 STAR 74% 35,596 178

3STAR 74% 28,350 315

2 STAR 62% 1,441 18

1 STAR 60% 1,255 25

Hotel Apartments 79% 36,599 358

Deluxe 79% 13,983 94

Superior 78% 3,436 35

Standard 78% 19,180 229

NUMBER OF ESTABLISHEMENTS

NUMBER OF HOTEL NUMBER OF HOTEL APARTMENT

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NUMBER OF ROOMS

HOTEL NUMBER OF ROOMS HOTEL APARTMENT NUMBER OF ROOMS

OCCUPIED RATE %

HOTEL OCCUPIED RATE % HOTEL APARTMENTS OCCUPIED RATE %

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Guests by Region Hotels& Hotel Apartments for 2016

Title Guests hotel Guests hotel apartments Total Guests

UAE 3,628,440 273,467 3,901,907

GCC 3,518,460 262,936 3,781,396

Arab Countries 2,388,516 219,561 2,608,077

Asian countries 4,791,370 303,671 5,095,041

European Countries 4,869,931 158,641 5,028,572

American Countries 1,106,456 74,933 1,181,389

African countries 782,917 40,560 823,477

Oceania 369,439 11,278 380,717

Other 55,978 11,936 67,914

Guest by Region – Hotel Establishment

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Guest by Region – Hotel Apartments

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Hotel Establishments Main Indicators for 2016

Indicator % Growth Rate 2016 2015


Actual Guest Arrivals (No.) 7% 22,868,489 21,417,611

Guest Nights (No.) 6% 73,854,531 69,766,747

Length of Stay (Avg) -1% 3.23 3.26

Available Rooms (No.) 5% 155,704 148,632

Occupancy room Rate (%) 0% 75% 75%

Indicator % Growth Rate 2016 2015

Total Revenue (AED) -4% 31,630,805,379 32,908,990,504

Room Revenue (AED) -5% 19,199,591,199 20,292,769,715

Food & Beverages Revenue (AED) -1% 11,515,955,742 11,689,873,713

Other Revenue (AED) -1% 915,258,438 926,347,076

Average Room Rate (AED) -9% 455 500

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2.2. HOTEL PERFORMANCE – STR REPORT DECEMBER 2017 NEW

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Executive Summary – December 2017

Month-to-date Analysis by Emirate – December 2017

Year-to-date Analysis by Emirate – December 2017

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UAE Month-to-Date Analysis – December 2017

UAE Year-to-Date Analysis – December 2017

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Dubai Month-to-Date Analysis – December 2017

Dubai Year-to-Date Analysis – December 2017

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Abu Dhabi Month-to-Date Analysis – December 2017

Abu Dhabi Year-to-Date Analysis – December 2017

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Sharjah Month-to-Date Analysis – December 2017

Sharjah Year-to-Date Analysis – December 2017

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Al Fujairah Month-to-Date Analysis – December 2017

Al Fujairah Year-to-Date Analysis – December 2017

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Ras Al Khaimah Month-to-Date Analysis – December 2017

Ras Al Khaimah Year-to-Date Analysis – December 2017

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Al Ain Month-to-Date Analysis – December 2017

Al Ain Year-to-Date Analysis – December 2017

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Ajman Month-to-Date Analysis – December 2017

Ajman Year-to-Date Analysis – December 2017

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UAE Month-to-Date Percent Change – December 2017

UAE Year-to-Date Percent Change – December 2017

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Month-to-Date Percent Change by Emirate – December 2017

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Year-to-Date Percent Change by Emirate – December 2017

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2.3. SCTDA Hospitality Report – December 2017 NEW

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OLERY DECEMBER 2017 NEW

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Prepared for
Sharjah T ourism Authority - December 2017

Performance Summary
All properties

GEI and number of reviews

GEI (right axis) Review Count


100
200
80
150
60
100
40

50 20

0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Guest Experience Index ™ Average review rating T otal number of reviews

75.2 - 0.3%
last period 7.5 - 1.1%
last period 4002 + 13.3%
last period

Performance subratings
Groups GEI Overall Value Room Cleanliness Location Service Food Facilities

Sharjah - 5 star hotels 82.8 8.2 9.2 8.5 8.4 8.6 8.8 ‐ ‐
Sharjah - 4 star hotels 78.7 7.7 9.0 8.4 8.1 9.1 8.7 6.6 ‐
Sharjah - 3 star hotels 76.7 7.5 8.3 8.6 8.4 8.3 8.5 ‐ ‐
Sharjah - 2 star hotels 65.4 6.3 ‐ 7.6 5.3 ‐ 6.0 ‐ ‐

Sharjah - 1 star hotels 61.1 5.7 ‐ ‐ ‐ ‐ ‐ ‐ ‐


Sharjah - deluxe hotel apartments 80.9 8.0 8.4 8.1 8.3 8.1 8.4 ‐ ‐

Sharjah - standard hotel apart... 75.5 7.3 7.0 6.3 7.0 ‐ 6.7 10.0 ‐
Sharjah - basic hotel apartments 66.7 6.4 10.0 7.3 4.7 8.0 7.0 ‐ ‐

Rating color scheme 0 5 10

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2.5. ERNST & YOUNG REPORT - GLOBAL HOSPITALITY INSIGHTS-2017 OVERVIEW
NEW

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2.5. Ernst & Young - Global Hospitality Insights-2017

The hospitality industry continues to play an integral and robust role in the global economy.
In 2016, key themes in the sector included innovation, globalization, technology and consolidation.
Cross-border investment, large-scale mergers and acquisitions, and technology, such as data analyt-
ics, have changed the global landscape for hospitality executives.
While investors and developers remain active globally, market participants enter 2017 with a more
cautious outlook relative to the prior year. The growth observed in most global markets has begun to
decelerate amid new supply and high asset pricing.

Top 10 Thoughts of 2017 -


1. In Brexit’s wake: hospitality and leisure update
2. The evolution of analytics in the global hospitality industry
3. Record Chinese investment in global lodging markets
4. Real estate and hospitality disrupters
5. Cybersecurity: preparing and responding to a breach
6. Robotic process automation: advancements in technology
7. Sharing economy 2.0: the next chapter
8. Post-merger integration: promoting long-term deal success
9. Optimizing hotel asset value
10. Lodging as an anchor for vacation-home communities

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1. In Brexit’s wake: Hospitality and leisure update
Assuming the UK does exit the EU, timing and planning are critical considerations for hospitality
executives. However, there are still many positive signs for the industry.
For example, the UK remains one of the most visited countries in the world, with London ranking as
the second-most visited tourist destination globally. Nevertheless, Brexit will add further complexity
to both the short and medium-term outlook for the hospitality and leisure sector. The consumer
confidence outlook, which is critical to the economy, appears challenging. Currency depreciation is
pushing up inflation, which when combined with the low wage growth of recent years is forecast to
squeeze real household incomes.
An economically sensitive hospitality and leisure sector is likely to be at the forefront of any adjust-
ment to consumer spending.

2. The evolution of analytics in the global hospitality industry


The use of analytics often has a direct impact on revenue for hotel management companies. In the
revenue management department, companies can now leverage data from a multitude of sources,
including online search behavior, air traffic, competitor sales and future reservations to better
forecast demand and optimize pricing.
As the hospitality industry captures enormous volumes of diverse data sets, the effective use of
analytics is dramatically changing how hospitality businesses are run. Embracing data analytics will
not only enhance the guest experience, but also drive top- and bottom-line results for hotel owners
and management companies. In addition, those dealmakers who leverage data analytics in their
diligence are likely to benefit from enhanced returns.

3. Record Chinese investment in global lodging markets


Chinese investors increased their overseas activity in 2016 due to the limited performance in domes-
tic hospitality markets and the higher property yields and stable investment environments abroad.
By investing abroad, investors are able to hedge against China’s continuing currency devaluation.
Lacking investment opportunities at home and desiring to build global brand recognition for their
hotel assets, Chinese investors are likely to invest more in global hotel markets in 2017. A growing
appetite for scale should continue to drive major players toward platform level investments, partic-
ularly in major gateway markets.
With Brexit presenting new opportunities and insurance regulations allowing Chinese insurers to
allocate substantially more capital overseas, Chinese investors are expected to remain active
cross-border hotel investors.

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4. Real estate and hospitality disrupters
Today, the interlocking forces of technology, demographics and globalization are disrupting organiza-
tions of all types across all industries. The real estate industry, and the hospitality sector specifical-
ly, is no exception.
What’s important to keep in mind is that while disruption threatens traditional business models and
value chains, there are also significant opportunities in the changes taking place.
The unique dynamics of real estate make the challenge of disruption particularly steep. The plan-
ning, delivery and management of real property requires a long-term vision, which is difficult to
establish in a rapidly changing world. In the hospitality sector, leaders must try to better anticipate
the future and consciously adopt new ideas, with success depending on the ability to proactively
shape and drive future demand.

5. Cybersecurity: Preparing and responding to a breach


The average security breach costs hotel companies an estimated US$4.0m, and such breaches
remain a serious threat to the global hospitality sector. Companies must be prepared to quickly
detect an attack, correctly diagnose the causes and mitigate financial & reputational damage.
Confronting a security breach requires seamless integration of people, processes and tools. As hospi-
tality companies gather facts and their unfolding investigation reveals more information, their initial
conclusions about a cyber-attack, such as what was accessed or stolen, may prove wrong.

6. Robotic process automation: Advancements in technology


Robotic process automation (RPA) is an off-the-shelf advanced software technology that businesses
can acquire from select vendors and set up for their own particular needs. As a “virtual employee,”
a robot or “bot” accesses and manipulates other computer applications through their user interfac-
es, which enables it to automate high-volume, repetitive tasks with fewer errors.
Given the many benefits of RPA, adoption is expected by more hotel companies. However,
companies should bear in mind that while RPA could possibly eliminate some jobs where the tasks
performed are routine, they will need to retain the key people who are experienced in running
accounting, HR and other operations so they can apply that experience in managing RPA. RPA offers
companies the opportunity to make their business processes more efficient, reliable and cost
effective. But to take full advantage of that opportunity, they must clearly understand how to plan
for and adopt the technology.

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7. Sharing economy 2.0: The next chapter
In 2016, increasing government involvement subjected peer-to-peer players to new taxes and regula-
tions similar to those imposed on traditional hotels. These included building accessibility and safety
rules, transient occupancy taxes and headline-making length-of-stay regulations.
In response to the growth in peer-to-peer lodging, traditional hotels are adopting different strate-
gies to appeal to travelers attracted to the ease of online booking and the immersive travel experi-
ence offered by home rentals. For instance, some major hotel brands are enhancing technology
offerings like mobile — such as booking, check-in, mobile keys, payment and in-room service — and
social media platforms for guests.

8. Post-merger integration: promoting long-term deal success


Consolidation in the global hospitality industry is expected to continue, influenced by broader macro
and industry-specific forces, including globalization, changing customer preferences, innovation and
technology, and the sharing economy.
In 2017, hotel companies will continue to pursue mergers and acquisitions that capitalize on the
target company’s value.
As hospitality companies use leading tools to mitigate the impact of integration issues on a transac-
tion, unite around a common culture and purpose, and drive continuous assessment and improve-
ment, they will position the newly combined company for strong future growth.

9. Optimizing hotel asset value


As the hospitality cycle enters its later stages and operating cost escalation continues to accelerate,
the focus of investors and owners is shifting from investing in new opportunities to optimizing the
performance of their existing assets. In addition, the number of different stakeholders in hotel
investments poses a critical challenge. Key parties involved in hotel investments typically include
ownership, operator and brand. As a result, it is critical to have a proactive asset monitoring strate-
gy in place to preserve and strategically enhance value, as well as to align the interests among the
different stakeholders.

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10. Lodging as an anchor for vacation-home communities
The traditional country-club lifestyle and golf-anchored vacation-home resort community has given
way to a new type of vacation community found around the globe that incorporates lodging as an
important component.
Today, the hotel concept is more often at the center of development planning for new, larger and
more active resort lifestyle vacation-home communities. What’s also changing is that developers are
collaborating with internationally recognized hotel management companies to operate the larger
and more traditional resort hotels in the communities. Such partnerships help to establish a resort’s
credibility, set expectations for its quality and positioning, and help guide long-term planning for
future residential phases.

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2.6. HVS – HOSPITALITY MIDDLE EAST REPORT 2017
NEW

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FOR MORE ASSISTANCE:
TOURISM AFFAIRS

MOHAMED YOUSSEF - mohamed.y@sharjahtourism.ae


RASHMI KARIA - rashmi.k@sharjahtourism.ae

SCTDA - SCTA - GCTA - Tourism & Hospitality Industry


Report Q4 - 2017

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