Abu Dhabi gears up for big tourism boom

Top-level industry leaders are in Berlin, Germany, heading a strong contingent of private sector companies at ITB Berlin, the world's biggest travel market.

"Hotel room rates are high because available rooms are not enough to meet growing demand. But with projects slated to be completed in a couple of years, the phenomenon is expected to partially dwindle. However, there will never be a return to old, cheap rates," said Abdulla Al Romaithi, Managing Director of National Corporation for Tourism & Hotels (NCTH).

He said that Al Raha Beach Hotel (Abu Dhabi) and Danat Resort Jebel Al Dhanna (Rowais) were opened in 2005. The Danat brand was lauched last year.

He also said Abu Dhabi InterContinental Hotel would undergo a complete refurbishment starting on April 15. He said the Dh200 million project would take seven moths to complete. "If we were to postpone the project, we would still have to do it later. Therefore, we thought it best to start the project as soon as possible though it would mean a huge loss of business," said Mr. Al Romaithi.

'InterCon's business contributes some 33 per cent of NCTH's profits. The Abu Dhabi government has a 40 per cent stake in the corporation. The major projects that have already been announced to transform Abu Dhabi's tourism and hospitality industry are leading the way,' said Mr. Al Romaithi. He particularly mentioned two mega projects being undertaken by Al Jaber Group and Rotana Group.

"The Abu Dhabi Tourism Authority is exerting great efforts in collaboration with the private sector to put the emirate on the right track to making Abu Dhabi a prime holiday and business destination," he noted, adding that NCTH is ready to invest in new projects which the emirate needs.

But other Abu Dhabi hospitality industry experts somewhat disagree with the assumption that hotel room shortage even exists. "The occupancy rate, in general, is around 80 per cent on average, which means there is still potential to receive larger numbers of tourists. There will also be some 3,000 rooms available in two years from now," said Khalifa Nasser Al Mansoori, Chairman of Abu Dhabi National Hotels (Hotel, Tourism, Transport and Catering Group).

He anticipated that growth rates in the industry in the emirate would continue in 2006. "There are also new 4 and 5-star hotel projects which will be announced in the near future," he disclosed.

Mr. Al Mansoori said one of the most significant aspects of the participation in this year's edition of ITB Berlin is that all establishments in the travel and tourism sector in the UAE are all taking part under the umbrella of the UAE.
"This will surely reflect positively on boosting the travel and tourism sector and enhance the UAE's position on the world tourism map." He said the number of exhibitors at the Abu Dhabi pavilion increased to 56 from 42 last year.

Mr. Al Mansoori received Berlin Mayor Klaus ðWowereit who visited the Abu Dhabi pavilion on the inauguration day. "Mr. Wowereit told me he was so happy with the increase in the size of the Abu Dhabi participation in the show which reflects the growth in economic and tourist relations between the two countries," said Mr. Al Mansoori.

This year, the show has attracted some 8,000 exhibitors from 188 countries.