Abu Dhabi's tourism industry in confidence upturn events and exhibitions seen as key opportunity drivers in coming year

The ATDA survey which is based on the United Nations World Tourism Organisation's (UNWTO) methodology for its global confidence index, questioned 120 local industry stakeholders, including accommodation providers and tour operators. Abu Dhabi's tourism industry registered a confidence rating of 96 - which is 39 points ahead of the UNWTO's rating for the worldwide industry for January and April this year.

Over the coming 12 months events and exhibitions were identified as opportunities with other positive influencers being: economic stability, reduced room prices, increased attractions and developments, better infrastructure and services and the business travel sector.

"As an industry we are looking to leverage these strengths to counter challenges we may face from the global financial crisis fall out," said His Excellency Mubarak Al Muhairi, Director General, ADTA.

Survey participants expect the domestic UAE market to deliver strong business for the destination over the coming 12 months with Qatar and Saudi Arabia also identified as key inbound markets. Participants also reported growing confidence in business emanating from India and China and key Western markets, most notably Germany, France and the UK.

The survey also identified challenges the industry expects may impact tourism business in the coming year. These include: changing business imperatives brought on by the global financial crisis; increasing competition within Abu Dhabi's hotel markets; parking issues within the UAE capital; ongoing construction; a lack of visitor attractions within the destination; tourism regulations; immigration and visa issues and reduced room prices in neighbouring emirates.

"The feedback we receive from the survey helps us work more closely with stakeholders to ascertain ways of surmounting challenges as well as to identify and progress the many opportunities which still exist for the industry at large,"

added Al Muhairi.

The survey results were unveiled today at the ADTA's first annual industry forum, which brought together sector representatives from the accommodation, tour operator, attractions and retail, transport and business tourism segments. The authority has formed five industry development committees (IDCs) comprising leading industry players to help drive forward Abu Dhabi's tourism agenda in line with the government's 2030 aspirations of attaining 7.9m visitors staying in 80,000 hotel rooms within the next 20 years.

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"Sector representatives will meet regularly with the authority so we can better understand their concerns, they can understand ours, and together we can brainstorm initiatives and bring new concepts to reality," said Al Muhairi. "These IDCs will heavily influence the strategic direction of tourism in Abu Dhabi.."

A representative of each IDC will sit on an overarching industry advisory panel designed as a peak tourism reference group for the authority and other government agencies.

The forum heard that despite the onset of the global financial crisis, Abu Dhabi's tourism sector performed well last year achieving some 1.5m hotel guests, which was a 4% increase on 2007. They generated: 4.7m guest nights, a 10% rise on the previous year; delivered Dhs4.3bn in revenue, which was up by 50% on 2007; an 84% occupancy rate and stayed an average of three nights. Last year capped off over five years of strong, double-digit annual growth in Abu Dhabi hotel guest arrivals amounting to a 50% increase over the period.

Forum delegates heard that increasing air access to Abu Dhabi is opening up huge opportunity. Abu Dhabi International Airport is now directly linked with 69 destinations, served by 32 airlines, with Etihad Airways, the national airline of the UAE, consistently expanding capacity. Passenger traffic at Abu Dhabi International Airport has grown significantly over the past five years, almost doubling from 5m a year to 9m.

"Over the past five years we have ridden a wave of economic prosperity complemented by sound strategy which raised our international profile, the creation of quality infrastructure and a sound policy and regulatory environment," said Lawrence Franklin, ADTA's Strategy & Policy Director. "The performance of the accommodation sector has also been outstanding, facilitated to some extent by short-term supply restrictions."

In an ADTA industry overview, delegates learnt that the Abu Dhabi sector has performed well this year, compared to some international counterparts, and has significant long-term growth potential despite a challenging operating environment brought on by the impact of the global financial crisis, the spread of the H1N1 virus which deterred travel, as well as changes in the local economy and the expatriate population.

"ADTA uses a portfolio based approach to its markets. This has the benefit of spreading risk and ensuring that if any one market is underperforming, another may take up the slack. Our recent strong engagement with local and regional markets is a case in point," explained Franklin."Being a relatively new destination, none of our markets would be considered mature in the traditional sense. There is still strong growth potential from all our European markets. Our office network is currently spread across all market types including maturing, growth and emerging."

Comparing the year-todate July 2009 with the same period in 2008, Abu Dhabi's hotel guest arrivals slipped by just 1%, compared to a world average decline from January - April 2009 of 8%. "We are largely on course to maintain last year's guest arrivals level of 1.5m and achieve our 2009 target," said Franklin.

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While occupancy and guest night rates for the July 2008-2009 year-to-date showed a drop of 9%, average occupancy rates are a healthy 77% - still one of the world's highest.

Revenue growth during the period produced strong returns with an overall growth of 7%. "Much of that growth was achieved in Q1 when globally, rates were sliding in all major cities," added Franklin. "More recently, average room rates have stabilized which is a trend eagerly awaited by some industry sectors."

The domestic market performed extremely well - up by almost a third to July 2009. "A strong local economy and residents' desire to holiday-at-home have helped hold up the business and leisure ends of the market," explained Franklin. "Experience shows that taking less, closer and shorter duration trips are common travel responses during recessions. A destination response to leverage these trends could include a stronger focus on local and regional markets and building value-for-money short breaks."

Looking ahead to the next four years, the forum heard that key emerging markets, including India, China and Russia, would boast higher outbound growth rates and still have room for further development. GCC markets are also expected to outperform the global pack.

"The skill here will be our capacity to focus our efforts on the upper and emerging middle classes of these new markets in a resourcing and communication sense," said Franklin.

Delegates also heard that significant additional room stock is being made available in Abu Dhabi. Approximately 10,000 rooms are under construction to be delivered in the remainderof this year and through 2010, with a further 7,000 under construction to come on line in 2011.

"There is little doubt that we will achieve our 2012 target of 24,000 available hotel rooms," said Franklin. "There is also little doubt that this substantial addition to capacity will markedly change the supply and demand dynamics of Abu Dhabi's accommodation sector."

ADTA is targeting 10% growth in hotel guest arrivals next year then 15% each in 2011 and 2012. To realise its targets it plans to leverage the 2009 Etihad Airways Formula 1 Grand Prix and FIFA Club World Cup UAE 2009 activities, launch a global marketing campaign, increase marketing collateral, spearhead multi-component trade engagement through its international offices, ramp-up co-operative marketing programmes with partners, initiate stop-over marketing and open additional international offices.

Additional forward activities include: expansion of Abu Dhabi's product range, including leisure and business events, to encourage longer stays; enhancement of base-line training for front-line staff, including tour guides; ensuring integration of visitor needs into the emirate's expanding public transport network; the expansion of ADTA's visitor information centre network and enhancement of the quality and visitor focus of its 800 555 call centre service.

ADTA has also rolled out its first generation stakeholder programme - Partners In Progress - in which the annual forum and IDC meetings will assume integral roles.

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The stakeholder programme will catalyse development opportunities which include: building the destination's leisure component; leveraging stop-over potential; developing the regional market; growing medium and long-haul business; attracting more Emiratis into the industry; providing a value-for-money business and leisure proposition; building inbound potential from the BRIC economies; reinforcing a positive industry operating environment; leveraging airline access and partnerships; delivering the brand proposition emirate-wide; nurturing critical infrastructure opportunities; further hone its crisis management strategy and the provision of more data for better planning and development.

"The next few years provide us with the opportunity to solidify the foundations we need in the lead-up to the opening of Saadiyat Island's Cultural District and other landmark attractions to take us to the next level as a visitor destination," said Franklin. "One of these critical foundations is an integrated and maturing tourism sector working together on a common cause, creating a world-class destination of distinction."