Abu Dhabi plans tourism makeover

The government believes that focusing on tourism provides a number of advantages for the emirate's economy.

On one hand, many of the companies that operate in the tourism sector fall within the small and medium business enterprises (SME) category, which supports Abu Dhabi's stated goal of diversifying its enterprise base.

Tourism is also seen as a way to boost foreign currency earnings and improve the international profile of the emirate.

As part of its effort to promote its tourism industry, Abu Dhabi is committed to building world-class resorts, hotels, golf courses and other attractions that are well connected to the airport and each other. The government also plans to develop a vibrant business, culture, and leisure segment which will be supported by a fast growing hotels sector to cater to the growing number of high end tourists who are projected to visit the emirate.

The government has set an ambitious target of attracting 7.9 million tourists per year by 2030, from a projected base of 3.3 million in 2013 and 4.9 million in 2020. Meanwhile, hotel rooms in the emirate are forecast to rise to 21,000 in 2013, 49,000 in 2020, and 74,000 by 2030.

Switch from corporate visitors

Abu Dhabi's tourism has always been overshadowed by Dubai, which is the UAE's top travel spot with about five million visitors a year. The capital, which received approximately 1.6 million visitors in 2008, has a reputation for being less hip and cosmopolitan than Dubai, and relies mostly on corporate travellers to generate tourism revenue.

However, all that is set to change under a new tourism offensive launched by Abu Dhabi which aims to lure 2.7 million visitors per year to the capital by 2012. Prompted by a desire to expand its non-oil revenues, the emirate is taking a number of steps to fashion itself as a destination known for its culture and sophistication.

Saadiyat takes centre stage

The main focus of the emirate's tourism makeover is its $28bn Saadiyat Island project, which is being developed by an arm of the Abu Dhabi Tourism Authority (ADTA).

The island will feature a 670-acre cultural district where some of the world's best-known architects such as Frank Gehry, Jean Nouvel, Zaha Hadid and Tadao Ando are building the Guggenheim Abu Dhabi, a branch of the Louvre, a new Maritime Museum and a state-of-the-art performing arts centre.

Construction of the museums is scheduled to start this year and they are slated to open to the public in late 2013 or early 2014. In addition to its cultural offerings, Saadiyat Island will offer nine miles of beaches, three marinas, and two championship golf courses, including a Gary Player signature design that will be the Gulf's first 'ocean' course.

The island will also be home to 29 hotels - including an iconic seven-star property - with over 7,000 rooms. Abu Dhabi officials predict that Saadiyat will attract 1.5 million visitors a year once fully completed by 2018.

Tourism initiatives

Saadiyat is not the only project being developed to help attract tourists to the capital. Abu Dhabi Airports Company has opened the $299m Terminal 3, which will increase the capacity of the airport from seven million to 12 million passengers a year. The new terminal will be used nearly exclusively by Etihad Airways, which is seeing passenger traffic growth of roughly 30% a year.

Etihad receives much of the credit for helping to transform Abu Dhabi into a global hub, with its ambitious plans to expand its international route network, as well as increase its flight schedule frequency with existing major cities around the world.

The emirate also recently opened the 64-room boutique Desert Islands Resort & Spa hotel on Sir Bani Yas Island - a former Royal nature reserve which recently opened as part of the emirate's planned Desert Islands multi-experiential destination.

Another notable offering in the works is the five-star Qasr Al Sarab (Mirage Palace) desert retreat, which is set amidst the towering dunes of the Liwa Desert and due to open in September.

The capital is also gearing up to host a number of high-end events with direct appeal to sophisticated travellers, including the finale of the 2009 Formula 1 Grand Prix season, which will take place in the emirate in November.

Hotel developments

With relatively few hotels on offer in the emirate, demand for hotel rooms remains high despite the economic downturn. However, ADTA anticipates an additional 4,000 rooms coming on line by the end of this year.

'We have used 4,000 as a conservative forecast of additional capacity, which will conservatively more than double to 30,000 rooms by 2013,' said Ali Ahmed Al-Hosani, ADTA's Marketing Director. 'Being conservative means that even if some mooted projects do not eventuate, we will still easily deliver significant additional capacity which keeps pace with demand growth. This is in keeping with the ADTA's strategy of managed and measured growth.'