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Issue 18 2014 PAGE 08 Abu Dhabi markets itself as a cultural capital PAGE 20 The link between sporting events and tourism PAGE 04 Diversifying the economy through tourism Abu Dhabi’s integrated and strategic approach Tourism

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Page 1: Tourism | Feature Tourism Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken. The power of

Issue 18 2014

PAGE 08Abu Dhabi markets itself as a cultural capital

PAGE 20 The link between sporting events and tourism

PAGE 04 Diversifying the economy through tourism

Abu Dhabi’s integrated and strategic approach

Tourism

Page 2: Tourism | Feature Tourism Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken. The power of

Welcome | 01

T he United Nations World Tourism Organisation (UNWTO) has predicted that the UAE’s tourism industry will grow at 11 per cent in 2014 for a 19 per cent regional market share. Particularly heartening is that much of this growth is due to an influx of

international tourists.The latest figures from Abu Dhabi Tourism & Culture Authority (TCA Abu

Dhabi) make for equally positive reading. Abu Dhabi is extremely well placed to reach 2014’s target of 3.1 million visitors, as indicated by the fact that hotel room occupancy levels rose 26 per cent in the first nine months of the year.

According to UNWTO, in 2013 international tourism receipts reached $1159 billion worldwide, up from $1078 billion in 2012. Such figures, when combined with the fact that tourism is responsible for nine per cent of global gross domestic product and one in 11 jobs, explains why the tourism sector is an integral part of Abu Dhabi’s Vision 2030 economic diversification target.

Abu Dhabi uses a multipronged and integrated approach to expanding its tourism industry. A case in point is the 364-bed Cleveland Clinic Abu Dhabi, which is being built in conjunction with the emirate’s investment company Mubadala. This targeting of the healthcare sector in partnership with specialist healthcare providers is helping Abu Dhabi make inroads into the global medical tourism sector that is forecast to be worth $32.5 billion by 2019.

In a similar vein, Abu Dhabi is targeting cultural tourism through the auspices of the TCA Abu Dhabi and the Tourist Development & Investment Company (TDIC), the government-owned investment arm. The Louvre Abu Dhabi, which will open next year, will be the first completed project of the Saadiyat Island Cultural District. Further projects include the Guggenheim Abu Dhabi, the Performing Arts Centre, the Zayed National Museum and the Maritime Museum.

Abu Dhabi is also successfully marketing itself globally by hosting high-profile sporting events, such as the Formula 1 Etihad Airways Abu Dhabi Grand Prix that drew 125,000 local and international spectators to the 2014 race weekend.

All these factors, combined with Abu Dhabi’s growing retail sector, unique natural attractions and expanding hospitality and entertainment offerings has put Abu Dhabi in an excellent position for continued growth in the tourism sector. ◆

Growing Abu Dhabi’s tourism sector

Fahad Saeed Al RaqbaniDirector general of the Abu Dhabi Council for Economic Development

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Page 3: Tourism | Feature Tourism Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken. The power of

02 | Contents

Since 1950, international tourist arrivals have shown virtually

uninterrupted growth and by 2030 the United Nations World Tourism Organisation forecasts 1.8 billion arrivals. Against this backdrop, it is not surprising that tourism is

one of the 12 sectors identified in Abu Dhabi’s Economic Vision 2030 to help diversify the emirate’s

economy, especially as emerging destinations are projected to grow at

4.4 per cent a year.

Historically, Abu Dhabi has been a source country for medical tourism.

However, the Abu Dhabi government is making concerted efforts to

reverse this trend through increased healthcare expenditure. In 2015,

the 364-bed ultra-modern specialty Cleveland Clinic Abu Dhabi will

open its doors. Moreover Mubadala, the government’s investment arm,

is opening new hospitals across the emirate and revamping older facilities. International healthcare

providers are also investing heavily in the emirate.

Culture is a strong driver of upscale, high-repeat tourism – the very

market that Abu Dhabi is hoping to nurture. As a result, the government

is transforming Abu Dhabi into a cultural capital by investing $27

billion in developing cutting-edge cultural experiences on Saadiyat Island. The Louvre Abu Dhabi is set to open next year, while the

Guggenheim Abu Dhabi is slated for completion in 2017.

04The power of tourism

The

Issue 18 2014

06Healthy benefits

08Painting the future of

tourism

Page 4: Tourism | Feature Tourism Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken. The power of

The Economic Review | 03

The Abu Dhabi government is putting the capital on top of the

leaderboard for global destinations with a cohesive sport-based strategy

to raise the profile of the emirate. The Formula 1 Etihad Airways Abu Dhabi Grand Prix, the Abu

Dhabi HSBC Golf Championship, the Mubadala Tennis Championship and the Volvo Ocean Race are all selected for hosting by TCA Abu Dhabi on the basis of the value they bring to the emirate. The

value lies not only in attracting tourists, but also infrastructure

development and social benefits for the emirate’s population.

Abu Dhabi has a number of unique tourist attractions, ranging from

Ferrari World to the unspoilt natural beauty of Sir Bani Yas Island. Yas

Waterworld was named the Middle East’s leading tourist attraction at the

2013 World Travel Awards, and the recent opening of Yas Mall

has boosted Abu Dhabi’s retail, dining and entertainment offerings.

Sheikh Zayed Grand Mosque is a fitting tribute to the emirate’s culture

and heritage.

The Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi) oversees the emirate’s tourism strategy and is responsible for marketing its many

attractions abroad. Sultan Al Dhaheri, Acting Executive Director Tourism of Abu Dhabi Tourism & Culture

Authority, shares his views on how high-profile sporting events have

drawn both international attention and visitors to Abu Dhabi.

20Go above, go beyond

16Sporting chance

12A growing tourist

attraction

Page 5: Tourism | Feature Tourism Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken. The power of

04 | Feature Tourism

Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken.

The power of tourism

The global tourism industry is growing steadily. According to the United Nations World Tourism

Organisation (UNWTO) international tourist arrivals have shown virtually uninterrupted growth – from 25 million in 1950 to 528 million in 1995, and 1.08 billion in 2013. Currently, world tourism is responsible for one in eleven jobs, $1.3 trillion in exports and nine per cent of global gross domestic product (GDP).

Moreover, this growth trend is set to continue. In Tourism Towards 2030: Global Overview, the UNWTO forecasts 1.8 billion international tourists by 2030. Between 2010 and 2030, arrivals in emerging destinations (+4.4 per cent a year) are expected to increase at twice the rate of those in advanced economies (+2.2

per cent a year). The Middle East share of the global tourism market is forecast to grow from six per cent in 2010 to eight per cent by 2030.

Against this backdrop, it is not surprising that tourism is one of the 12 sectors identified in Abu Dhabi’s Economic Vision 2030 to help diversify the emirate’s economy from its reliance on the hydrocarbon industry. By 2030, Abu Dhabi’s aim is that the non-oil share of the economy will rise to 60 per cent of GDP.

In the tourism sector, Abu Dhabi has taken a strategic approach by boosting the real estate, retail and tourism sectors in an integrated manner. The Abu Dhabi Tourism Authority (ADTA), which was established in 2004, worked closely with all the emirate’s tourism industry stakeholders in the private

With 20 million visitors in mind, the TCA Abu Dhabi currently has two priorities; increasing hotel guest numbers, and encouraging visitors who do come to stay longer.

Page 6: Tourism | Feature Tourism Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken. The power of

The Economic Review | 05

director of tourism at TCA Abu Dhabi who stressed the emirate’s positive outlook, especially with new products coming into the markets such as the recently opened Yas Mall and next year’s opening of the Louvre Abu Dhabi. In fact, the outlook is so positive that Abu Dhabi recently announced it was aiming to raise visitor numbers to 20 million to coincide with Dubai Expo 2020.

That is an ambitious target, but Abu Dhabi is an ambitious emirate. In the next five years a million square metres of new mall space is being planned, (including Yas Mall, which opened on November 19). Abu Dhabi also had 7,348 hotel rooms in various stages of planning and construction at the end of September 2014, according to the consultancy STR Global. Abu Dhabi had 22,093 rooms at the end of September 2014.

With 20 million visitors in mind, TCA Abu Dhabi currently has two priorities; increasing hotel guest numbers, and encouraging visitors who do come to stay longer.

“We are increasingly working with private sector event organisers to bring events and festivals to the emirate,” explained the TCA’s Al Daheri. “We are working with the private and public sector on building the product offering, we are expanding our marketing, particularly on the powerful digital front, and we are proactively seeking out opportunities through our Abu Dhabi Convention Bureau to attract major conferences and exhibitions here.”

With this integrated approach and public-private partnership, Abu Dhabi is well-poised to continue its tourism sector growth. ◆

and public sectors. These bodies included aviation infrastructure and transport suppliers, airlines, destination management companies, accommodation providers and meetings organisers. Together they adopted a collaborative approach to promoting the emirate as an up-market destination with a focus on sustaining and preserving its natural environment and heritage. The Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) replaced the ADTA in February 2012.

Abu Dhabi’s Tourism & Investment Company (TDIC), the tourism authority’s asset management and development arm, also supports the 2030 Vision by developing some of the emirate’s headline attractions, such as Saadiyat Island. The TDIC is building $30 billion worth of projects on the island, with the Louvre Abu Dhabi set to open next year and the Guggenheim Abu Dhabi in 2018.

Tourism is already playing a central role in the UAE’s economy. Tourism related sectors – hotel stays, airline tickets and jobs these industries create – contributed as much as 14 per cent to the country’s economy in 2012. The latest statistics from TCA Abu Dhabi reveal that the emirates’ 156 hotels and hotel apartments reported a 26 per cent year-on-year growth in the first nine months of 2014.

“This is a very encouraging performance particularly with over 2,000 more rooms,” said HE Jasem Al Darmaki, acting director general, TCA Abu Dhabi. “It leaves us extremely well placed to achieve our annual guest target of 3.1 million this year.” This view was echoed by Sultan Al Daheri, acting executive

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Page 7: Tourism | Feature Tourism Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken. The power of

06 | Feature Medical Tourism

A booming population, a growing prevalence in lifestyle diseases and steady government spending to develop the health infrastructure have transformed the UAE into a thriving market for healthcare providers, reports Mary Sophia.

Healthy benefits

Historically, the UAE and much of the Gulf have had low levels of healthcare

expenditure, which subsequently led to a bigger bill in terms of providing subsidies to its citizens for obtaining treatment overseas.

According to a report by Arqaam Capital, the UAE’s expenditure on overseas treatment for its nationals alone amounted to AED15 billion between 2002 and 2012.

However, the Emirates is trying to reverse the flow of medical tourism, eying a larger share in the health tourism market by attracting visitors rather than supplying them to other destinations.

As the first step in that direction, the country has increased its healthcare expenditure, which is expected to

grow at a compound annual growth rate of 10.2 per cent over the next five years, representing 2.8 per cent of the UAE’s GDP, research firm Frost and Sullivan noted.

The Gulf country’s medical tourism market is also edging up with the market valued at $1.58 billion (AED5.8 billion) in 2012 and $1.69 billion in 2013, a six per cent growth according to figures from Euromonitor International.

Experts say that this strategic shift in policy by the UAE and most of the GCC nations is timely.

“Medical tourism has a key role to play in these countries not only because some of the countries’ economy is supported by tourism but also the intrinsic challenge in controlling the cost of outbound medical tourism,” said Sandeep

Page 8: Tourism | Feature Tourism Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken. The power of

The Economic Review | 07

Such massive government spending in Abu Dhabi’s healthcare sector has also piqued the interest of private sector players, who are eager to pump in funds to the capital.

Sinha, vice-president, Healthcare Practice, Middle East, North Africa and South Asia, Frost & Sullivan.

Abu Dhabi, which has the highest private healthcare spending among all emirates, is looking to tap into this shift in the UAE’s policy with the opening of the Cleveland Clinic next year.

The 364-bed ultra-modern specialty hospital on Al Maryah Island in Abu Dhabi will be Cleveland Clinic’s first major expansion outside the US and Canada. The Ohio-based hospital, well known for its cardiac treatment procedures, will also be connected to the adjoining Rosewood Hotel through climate-controlled walkways, increasing its appeal to visitors.

The hospital, which is being developed in partnership with the Abu Dhabi government’s investment company Mubadala, will also improve the healthcare infrastructure available to the local population while retaining the country’s outbound medical tourists.

“The idea is that there is a lot of money that is spent by the government on providing care for UAE nationals, specifically providing care for them abroad,” said Abdulla Abdul Aziz Al Shamsi, executive administrative officer of Cleveland Clinic Abu Dhabi (CCAD).

“The opportunity is to reinstate that care back as an option here in Abu Dhabi, and this relationship is allowing us to be able to deliver that health care.”

Cleveland Clinic is also a perfect partner to carry forward Abu Dhabi’s vision in healthcare as the group has been managing the Sheikh Khalifa Medical City in the capital since 2007.

But Abu Dhabi’s investments in attracting the best in healthcare do not end with Cleveland Clinic.

The government has been actively developing its medical offerings over the last year as it opened new hospitals across the emirate and revamped older facilities, readying itself to lure medical tourists.

In 2013, Mubadala Healthcare opened Healthpoint, a 74-bed

multi-specialty hospital in Zayed Sports City. The hospital, which will be managed by German operator Askelpios, will look to cater to a growing expat population in the emirate aside from focusing on medical tourism, officials said.

Such massive government spending in Abu Dhabi’s healthcare sector has also piqued the interest of private sector players, who are eager to pump funds into the capital.

Abu Dhabi-based Al Noor Hospitals Group announced earlier this year that it has acquired Gulf International Cancer Centre for $21.8 million in February 2014. Post the purchase, the company said that it expects to open two cancer care centres in the development, upping its capability in chronic disease care.

Meanwhile, another local healthcare group, United Eastern Medical Services, is opening the 140-bed hospital Danat Al Emarat in Abu Dhabi while industry stalwarts such as NMC Healthcare and Aster DM Healthcare Group also have announced aggressive expansion plans with the opening of new clinics and hospitals in the emirate.

In addition, Abu Dhabi’s Burjeel Hospital, part of VPS Healthcare Group, is planning a $1.5 billion expansion in the capital over the course of the next three years as it aims to widen its portfolio.

Abu Dhabi’s healthcare scene is also attracting a number of international players to enter the foray. South African group Mediclinic will soon open a clinic in the Corniche area of Abu Dhabi, the company said in a filing.

Such strong interest from global and local healthcare providers and the amount of investment flowing into the sector are sure to push the emirate onto the fast track for tapping into the global medical tourism industry. Euromonitor International predicts health and wellness tourism in the UAE is expected to grow strongly, with a predicted compound annual growth rate of 11 per cent this year. ◆

Page 9: Tourism | Feature Tourism Abu Dhabi is using an integrated and strategic approach to grow its tourism industry and boost economic diversification, reports Guido Duken. The power of

08 | Feature Culture Capital

Abu Dhabi is developing world-class museums and cultural landmarks to promote upscale, high-repeat tourism, reports Vishwas Kulkarni.

Painting the future of tourism

Research conducted by the Abu Dhabi Tourism & Culture Authority has shown that culture is a

strong driver of tourism, singularly the sort that Abu Dhabi is looking to nurture: upscale, high-repeat visitation from a globally literate audience. To this end, the UAEs capital city is developing some of the region’s, and indeed the world’s, most cutting-edge cultural experiences – with scale and vision to match.

Abu Dhabi’s cultural direction was set by the late HH Sheikh Zayed bin Sultan Al Nahyan who believed in investing oil and gas profits for the development and benefit of the emirate and its people. When Sheikh Zayed died in 2004, his son HH Sheikh Kahlifa bin Sultan Al Nahyan took over and the

emirate’s cultural ambitions were redefined in scope, with Abu Dhabi aiming to become a truly global player. “Abu Dhabi will become an international cultural hub for the Middle East on par with the best in the world”, HH Sheikh Kahlifa declared. Abu Dhabi’s investment in cultural projects is part of its plans to diversify its economy and falls within its Abu Dhabi Economic Vision 2030 urban structure framework.

Saadiyat Island is a spectacular showcase of how Abu Dhabi is poised to become a top destination for international culture vultures, combining the tourist potential of Paris (for its culture), London (for its fashion) and New York (for its dining). On completion, the $27 billion Saadiyat Island will host five world-class cultural institutions

85-year-old Japanese artist Yayoi Kusuma’s Infinity-Mirrored Room was showcased at “Seeing Through Light”, the inaugural exhibition of Guggenheim Abu Dhabi.

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The Economic Review | 09

designed by five Pritzker Prize-winning architects: the Louvre Abu Dhabi, the Guggenheim Abu Dhabi, the Performing Arts Centre, the Zayed National Museum and the Maritime Museum.

Cities with cultural tourism potential earn significant revenue for their respective nations: for instance, the Louvre in Paris remains the world’s most visited museum, recording a footfall of 9.2 million visitors in 2013; for the same year, 1.2 million visitors gazed

at the walls of the Guggenheim New York. In erecting cultural landmarks that have significant brand value and educational possibilities, Abu Dhabi is also exploiting another facet of its tourism potential: its equidistance from Asia, Europe and Africa. A traveller from Shanghai, Kolkata or Singapore would save significantly on airfares in choosing to visit a Claude Monet retrospective here, rather than in London, Paris or New York.

A centre piece at the “Seeing Through Light”

exhibition, Guggenheim Abu Dhabi, explores

the theme of transcendental light.

The steel feathers jutting out of Zayed National

Museum’s architecture are inspired by the flight and feathers of a falcon.

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10 | Feature Culture Capital

In addition, Abu Dhabi has complemented its cultural renaissance with remarkable strides in leisure tourism and education. Abu Dhabi Ports Company (ADPC) expects to receive nearly 25 per cent more cruise ships and 16 per cent additional passengers to visit the capital this season compared with last year. In 2014, ADPC expects 93 ships to call at Zayed Port, up from 75 last season, and about 220,000 passengers from 189,709 last year.

The emirate also now boasts world-class educational institutions: New York University Abu Dhabi; Paris-Sorbonne University, Abu Dhabi INSEAD, and New York Film Academy. New York University Abu Dhabi’s campus has been designed by internationally-acclaimed Uruguayan architect, Rafael Vinoly. As part of its cultural policy planning, the government of Abu Dhabi has recently signed agreements with top universities and business schools around the world with the aim of attracting and fostering students, researchers and future professionals in the field of culture.

In December 2015, Abu Dhabi will inaugurate a 24,000 square metre branch of the Louvre museum. Work is on schedule. In October, the Tourism Development and Investment Company (TDIC) announced the full installation of the Louvre Abu Dhabi dome

structure, a jaw-dropping creation that consists of 85 super-sized steel elements and weighs 7,000 tonnes. The French culture minister Fleur Pellerin, on a visit to the building site in November, called the Louvre Abu Dhabi a “magnificent work of art” and “a symbol of cultural influence”. “It’s a platform and meeting point of civilisations, so I think this museum in itself will be a marvellous symbol of the role that Abu Dhabi wants to play in terms of cultural influence,” Pellerin said.

The Louvre Abu Dhabi will showcase 300 works for 12 months from a dozen French institutions as well as the Louvre in Paris. Amongst these works will be Leonardo da Vinci’s La Belle Ferronnière, Jacques-Louis David’s portrait of Napoleon and Claude Monet’s La Gare Saint-Lazare. Louvre Abu Dhabi will encompass 9,200 square metres of art galleries. The 6,681 square metre Permanent Gallery will house the museum’s permanent collection, while the Temporary Gallery will be a dedicated space of 2,364 square metres presenting temporary exhibitions of international standards.

Meanwhile, the Frank Gehry-designed Guggenheim Abu Dhabi, slated for completion in 2017, opened its very first show titled “Seeing Through Light” in October 2014, a spectacle that

Abu Dhabi’s cultural direction was set by the late HH Sheikh Zayed bin Sultan Al Nahyan who believed in investing oil and gas profits for the development and benefit of the emirate and its people.

Pritzker Prize-winning architect Frank Gehry’s vision for Guggenheim Abu Dhabi has set a new benchmark for cultural institutions globally.

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The Economic Review | 11

The Guggenheim Bilbao is a case study in the impact a cultural attraction can have.

brought together artists from across the world, including American installation artist Robert Irwin and the late German artist Otto Piene.

Outside New York, the Guggenheim already operates in Venice and Bilbao. According to Richard Armstrong, director of the Solomon R Guggenheim Museum and Foundation, the Guggenheim Abu Dhabi “Will be the third, the largest, and the most connected to contemporary art exclusively. It will bring a different audience to Abu Dhabi from Asia, Europe and North America.”

The Guggenheim Bilbao is a case study in the impact a cultural attraction can have. When it was decided in the 1990s to spend $228.3 million on a modern art museum, critics objected to the squandering of public money. Yet in its first three years, almost four million tourists visited the museum, helping to generate about $500 million in economic activity. The Guggenheim Bilbao’s return on investment (excluding the value of its art collection) was complete within seven years of its opening.

Not all plans are for upscale, high-visitation tourists. Tourist Development & Investment Company (TDIC), the government-owned developer of cultural and residential projects, also has its eye on high-net-worth individuals who might want their own mansion by the Louvre. Indeed, the “Live by the Louvre” branding exercise is going ahead full steam. TDIC has announced plans to build 100 villas close to the Louvre and another 100 ultra-modern glass villas at the St Regis Hotel. In addition, it is also showcasing 461 luxury apartments in the Saadiyat Cultural District. To sate the sartorial and culinary needs of the rich and famous, Egyptian developer Tivoli Dom is designing an entertainment and dining venue that will feature culinary delights from across the world, while a developer with ties to the owner of the Louis Vuitton designer label is building a 168,000-square-metre luxury mall that will be connected to three of Saadiyat’s mega-museums.

Urban and cultural planning

is carefully and consciously intertwined in Abu Dhabi. Under the blueprint of the Abu Dhabi Vision 2030 plan, as these efforts have been branded, these project will achieve two main goals: politically, it will facilitate a cultural enlightenment in the emirate and the Gulf region; economically, it will pave the path for a lucrative diversification into cultural tourism. ◆

The Louvre Abu Dhabi’s 7,000-tonne dome roof was fully installed in October 2014.

Endless Prayers by Persian-born artist Y Z Kami at the Guggenheim Abu Dhabi is proof that the Middle East has immense artistic talent to tap into.

Chain Permutations by Berlin-based artist Angela Bulloch is an example of how Abu Dhabi is bringing the best conceptual international art to the Middle East.

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12 | Feature Unique Selling Points

Abu Dhabi has a number of unique tourist attractions, ranging from Ferrari World to the natural beauty of Sir Bani Yas Island. And there are more to come, reports Iain Akerman.

A growing tourist attraction

Deep inside Manarat Al Saadiyat, a 15,400-square-metre visitor centre designed

to bring the vision of Abu Dhabi’s Saadiyat Island to life, is an immersive mirrored environment by Japanese artist Yayoi Kusama. Called ‘Infinity Mirrored Room – The Souls of Millions of Light Years Away,’ the work is a reflection on death and the afterlife, science and mysticism, the personal and the impersonal. It is also part of the Guggenheim Abu Dhabi’s pre-opening exhibition, Seeing Through Light.

The exhibition is an introduction to the future museum’s “curatorial vision” and is made up of 19 artworks acquired specifically

for the venue’s collection, as well as two key loans from its partner institution, the Solomon R. Guggenheim Museum in New York. The idea is to portray a sense of intention, but also to begin a narrative that will be explored by the Frank Gehry-designed Guggenheim Abu Dhabi when it opens in 2017.

Itself a monument to light, with its glass-covered cones designed to become beacons on the cultural landscape of Abu Dhabi, Gehry’s Guggenheim is just one aspect of the emirate’s lofty ambition to make Saadiyat Island’s Cultural District one of the great cultural centres of the world. Alongside Gehry’s Guggenheim will be Zaha Hadid’s

The Sheikh Zayed Grand Mosque is a unique Abu Dhabi landmark.

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The Economic Review | 13

The growth happening in Abu Dhabi in terms of huge investments and strategic developmental plans is strengthening and defining Abu Dhabi’s new touristic position on local, regional and international levels.

futuristic Performing Arts Centre; French architect Jean Nouvel’s dome-covered Louvre; and Tadao Ando’s Maritime Museum. Four of the world’s leading architects for four of the most ambitious cultural projects ever seen in the Middle East.

Saadiyat Island’s Cultural District is just one aspect of Abu Dhabi’s vision for a diversified tourism industry. The island itself, located 500 metres off Abu Dhabi island, is a vast, mixed use development, and when complete will include six individual districts, numerous hotels, marinas, golf courses, leisure facilities and sea-view apartments and villas. It is, without a shadow of a doubt, the government’s flagship project and is scheduled for completion in 2020.

The development of Saadiyat, however, is just one element in a much broader diversification strategy that is constantly evolving and bearing fruit. Yas Island, which was first initiated in 2006, is a major development that includes the Yas Marina Circuit – home to the Formula One Etihad Airways Abu Dhabi Grand Prix since 2009 – Ferrari World Abu Dhabi and Yas Waterworld, all of which are high ranking destinations in their own right. Yas Waterworld, with its 43 rides, slides and attractions, was named the Middle East’s leading tourist attraction at the World Travel Awards in 2013, while Ferrari World recently revealed plans for a major

expansion programme that will increase the park’s capacity by a minimum of 40 per cent.

“The growth happening in Abu Dhabi in terms of huge investments and strategic developmental plans is strengthening and defining Abu Dhabi’s new touristic position on local, regional and international levels,” says Omer Kaddouri, CEO and president of Abu Dhabi-based Rotana Hotel Management Corporation. “With the multi-billion dollar real estate and construction projects, Abu Dhabi’s government is establishing new rules consolidating the capital’s presence on the touristic map. It is supporting the development of new tourist attractions, shopping malls, bus stations and residential projects by creating new investment zones such as Yas and Saadiyat islands. It is also determined to enhance touristic, sport and cultural attractions such as Ferrari World, the Formula One Etihad Airways Abu Dhabi Grand Prix, Sheikh Zayed Grand Mosque, Sowwah Square shopping mall, Yas Island mall and Saadiyat Island’s three world class museums and retail entities.”

The emirate’s tourism strategy is overseen by Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi), with the Tourism Development & Investment Company (TDIC) operating as the master developer for Abu Dhabi’s major tourism, cultural

8Hotel Establishments Statistics of Abu Dhabi Emirate 8

The data shows that the number of guests increased in all months of 2013 except

July. The number of guests decreased in July by 4.0% compared with the same month in

2012. The number of guests rose in August by 36.8% and reached the highest level in

October with 288 thousand guests.

Figure ( 3 ): Guests of hotel establishments by month

888

159

274

414

42 28

443

116

960

192

336

530

47 42

529

134

0

100

200

300

400

500

600

700

800

900

1,000

Thou

sand

2012 2013

Visitors to Abu Dhabi by Region

Source: Abu Dhabi Tourism & Culture Authority

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14 | Feature Unique Selling Points

and residential destinations. The goal is for the emirate to become an international destination of distinction, as epitomised by the Cultural District and national carrier Etihad, while the authority’s mission is to promote the heritage, culture and traditions of Abu Dhabi worldwide. With that in mind, its activities are designed to support the emirate’s evolution into a world-class, sustainable destination.

“The Abu Dhabi Tourism & Culture Authority has been working hard to introduce new strong leisure and culture initiatives,” adds Kaddouri. “It has implemented new strategic plans with the aim to drive leisure business that is independent from business tourism, and they have highly succeeded. The number of travellers increased, especially the European and Asian visitors who spend time and money on their leisure travel to Abu Dhabi. This shows the growing acceptance of

the capital as a holiday location.”Indeed, tourist numbers are up.

Annual tourist figures have risen from 1.8 million visitors in 2010 to 2.7 million in 2013, with the number of visitors expected to hit 7.5 million by 2030. It is hoped that more than three million people will visit the emirate this year, with tourism not only a vital component of Abu Dhabi’s economic diversification strategy, but also a vital component of the government’s Economic Vision 2030 plan. Abu Dhabi’s 156 hotels and hotel apartments also reported their best ever nine months in terms of guest arrivals, guest nights, occupancy and revenue, according to figures released by TCA Abu Dhabi in November. The figures revealed that from January to the end of September this year, 2,498,672 guests checked into the emirate’s accommodation – a 26 per cent year-on-year increase.

“Abu Dhabi is rapidly evolving as a key tourism destination and highlights its offering at key international and regional events,” says Jesse Vargas, general manager at Ferrari World Abu Dhabi. “It’s also developing its infrastructure and hospitality services to accommodate the increase in number of tourists coming into the emirate.”

Abu Dhabi has, in a relatively short period of time, successfully diversified its tourism industry, with Saadiyat Island’s Cultural District only set to further enhance that diversity. Abu Dhabi is now an emirate that can boast iconic landmarks such as the Sheikh Zayed Grand Mosque, the Emirates Palace hotel, and the architectural triumph that is the Yas Viceroy hotel, the only hotel in the world to straddle an F1 race track. It also offers culture and heritage, the natural beauty of its islands, and manmade attractions such as the aforementioned Yas Waterworld.

And the attractions keep coming, with Abu Dhabi seeking to position itself also as a major retail destination. Yas Mall, a mega shopping complex covering 2.5 million square feet, opened for business on 19 November. It is home to a 20-screen state-

The Arabian Oryx, which was once close to extinction, now thrives on Sir Bani Yas Island.

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The Economic Review | 15

of-the-art cinema, family entertainment zone and more than 370 stores. Developed by Aldar Properties, the mall is seeking to “place Abu Dhabi on the global stage of retail destinations”.

A major priority for TCA Abu Dhabi, however, is the preservation of the emirate’s cultural heritage, especially its historic and archaeological sites. It is also committed to supporting an ongoing programme of events and intellectual and artistic activities aimed at nurturing a cultural environment within the emirate. Much of that heritage lies in Al Ain, particularly the picturesque Al Jahili Fort, which is one of the UAE’s most historic buildings, and Al Ain proper, which TCA Abu Dhabi refers to as its ‘Heritage Heartland’. One of the world’s oldest continually inhabited settlements and a UNESCO World Heritage Site, Al Ain includes six oases and the archaeological sites of Bida bint Saud, Hafeet and Hili.

Yet Abu Dhabi’s biggest success, arguably, is its islands. Saadiyat and Yas have already been mentioned, but another key attraction is the nature-based destination of Sir Bani Yas Island.

Complete with a five-star

boutique hotel, luxury villas, purpose-built stables and historical sites, more than half the island makes up the Arabian Wildlife Park, one of the region’s largest wildlife reserves. It is home to more than 10,000 free roaming animals, including Arabian Oryx, gazelles, giraffes, hyenas and cheetahs, and visitors can take a nature and wildlife drive of the park in specially made vehicles accompanied by expert guides.

“To keep on with this impressive improvement, the authority should continue taking forward their long term successful developmental plan, building-up Abu Dhabi’s infrastructure, constructing new museums and retail shops, and collaborating with the other entities to promote the emirate locally and internationally,” says Kaddouri. “This will help to attract new international tourists to the emirate. Plus with Dubai 2020 happening in the UAE, Abu Dhabi Tourism & Culture Authority also has the opportunity to promote Abu Dhabi more as a key destination. They have the advantage to attract new investors interested in benefiting from the location of Abu Dhabi, which is in close proximity of the exhibition site.” ◆

Abu Dhabi has, in a relatively short period of time, successfully diversified its tourism industry, with Saadiyat Island’s Cultural District only set to further enhance that diversity.

Dhow races reflect the seafaring

Emirati culture.

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16 | In Conversation Sultan Al Dhaheri

In recent years, residents of Abu Dhabi and the wider UAE have become comfortably accustomed to

the regular arrival of big events to entertain them.

In the greatest traditions of the emirate, there is something for everyone, whether they’re a fan of golf, tennis, sailing, cricket, motor racing or any number of other sporting activities, big and small. Naturally enough, the most attention goes to the headline-grabbing global events, such as Formula 1, international golf and the Volvo Ocean Race.

But while these festivals of sport are great for everyone who lives here, are they of any benefit to the

Sporting chanceSultan Al Dhaheri, Acting Executive Director Tourism of Abu Dhabi Tourism & Culture Authority, shares his views on the big impact of high-profile sporting events in the emirate.

emirate? The answer, according to most analysts, is that there is a very positive impact and the economics of it are only one aspect.

“Major sporting events attract people to the destination, deliver hotel nights, people spend money in restaurants and shops and they also deliver huge destination awareness via media coverage,” says Sultan Al Dhaheri, Acting Executive Director Tourism, Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi).

“They also help to engage the local community – both expatriate and nationals – and encourage healthy lifestyles.”

Al Dhaheri cites the Abu Dhabi HSBC Golf Championship as an example. According to TCA Abu Dhabi research, this particular golf

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The Economic Review | 17

Major sporting events attract people to the destination, deliver hotel nights, people spend money in restaurants and shops, and they also deliver huge destination awareness via media coverage.

tournament delivered economic impact in terms of output, income, and employment in the UAE. The organisation puts a figure on it of $39.9 million in UAE gross output, saying the sectors which received direct impact included construction, wholesale, retail and repair services, hotels and restaurants, transport, storage, communication and business services. The event also sustained a full-time equivalent of 293 annual jobs.

With a precise grip of the numbers, the question arises of whether or not, in economic terms, events are worth it: proving that an event provides a good return on investment and in what time frame is not always easy to determine.

“It depends on a number of factors – not least the international profile of the event and worldwide interest in it,” explains Al Dhaheri. “We have to choose events which can translate into good business for the emirate, in both the short and long terms, and ones which are aligned to our destination requirements. You cannot put a time frame on these things.

“Take the Abu Dhabi HSBC Golf Championship, for instance – it has certainly put Abu Dhabi on the international golf tourism map and we now have a very healthy level of overseas rounds played in the emirate.

“It has also spurred some uptake of golf within the local Emirati community – we now see Emiratis attending the tournament, which was not the case nine years ago.”

In this sense events leave legacies in terms of infrastructure and cross-cultural knowledge transfer. But the benefits don’t end there. Al Dhaheri explains that for every event that is selected to be hosted or supported, an important part of the impact analysis is an estimated return on investment (ROI).

“This year, total host organisation spending on the Abu Dhabi HSBC Golf Championship, including prize money, site preparation, and operations amounted to $11.9 million,” he explains.

“Income was generated by sponsorships, TV and ticket sales, and the difference was made up with TCA Abu Dhabi funding of $6.5 million. TCA Abu Dhabi spending generated an estimated return on public investment of 4.2 (ROI%).”

Providing this level of return over the long-term is no accident. For one thing, events are carefully selected to help achieve it. There are a number of qualifying criteria – not least of which is whether the event is aligned with Abu Dhabi’s destination assets and target markets. The event also needs to have the ability to engage the local community and to

13Hotel Establishments Statistics of Abu Dhabi Emirate 13

Table (7): Average length of stay by nationality and classification, 2013 (Night/ Guest)

Nationality Five stars four stars Three Stars or less

Hotels apartments Total

UAE 2.3 2.0 2.0 3.4 2.3

GCC 2.4 2.0 1.9 2.7 2.3

Other Arab countries 2.7 2.1 2.3 4.5 2.7

Asia (excluding Arab countries) 2.5 2.4 2.5 7.1 3.2

Australia and Asia Pacific 2.7 2.4 2.8 12.0 3.4

Africa (excluding Arab countries) 3.3 2.5 2.8 7.2 3.3

Europe 4.2 3.8 3.8 14.5 4.6

North and South America 3.8 4.0 3.1 18.5 5.1

Not mentioned 1.9 2.0 3.0 8.4 2.6

Total 3.0 2.6 2.4 6.0 3.1 Source: Abu Dhabi Tourism and Culture Authority, Statistics Centre – Abu Dhabi

Occupancy Rate

Occupancy rate rose to 70.8% in 2013, an increase of 8.6% compared with 2012.

Figure (4): Occupancy rate by month

66.069.2 69.0

64.462.6

60.6

54.7 54.6

64.6

71.4

75.9

68.7

69.6

77.6

73.6 72.3

67.364.6

53.6

63.4

71.2

78.7

83.1

74.4

50

55

60

65

70

75

80

85

Jan Feb March April May June July Aug Sep Oct Nov Dec

%

2012 2013

Occupancy Rate

Occupancy rate by month

Occupancy rate rose to 70.8% in 2013, an increase of 8.6% compared with 2012.

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18 | In Conversation Sultan Al Dhaheri

leverage the emirate’s geographic, cultural and heritage assets, as well as meet the TCA Abu Dhabi mandate under Abu Dhabi’s 2030 economic vision.

“Of course, we also want the maximum positive worldwide publicity that we can out of them,” says Al Dhaheri. “We look for brand association with a global federation or rights-holder, global media coverage and visibility in key and emerging source markets, tourism and economic impact as in their ability to attract international visitors via inbound travel and overnight hotel stays.

“There must also be legacy elements in terms of sporting infrastructure and grassroots sporting development.”

Al Dhaheri points to the successful development of the ‘Destination Village’ on the Abu Dhabi Corniche, which he says is now servicing activities by Abu Dhabi Sailing and Yacht Club, such as grassroots sailing and marine heritage, employment and career development. All this relates back to the development spurred by the Volvo Ocean Race.

“We also consider whether the event can deliver an element of igniting and harnessing national pride by involving a local team or individuals – as is the case with the

Volvo Ocean Race where the UAE’s own Olympic sailor, Adil Khalid, is part of Abu Dhabi Ocean Racing and has made history by being the only Arab sailor to complete this round-the-world challenge,” explains Al Dhaheri.

The Volvo Ocean Race also delivers for the emirate on a couple of other fronts. It delivers what Al Dhaheri calls a sense of community and gives the emirate the opportunity to demonstrate local abilities and capabilities and leveraging its rich maritime heritage. Al Dhaheri also credits the race with an ability to foster or re-ignite a community, encouraging the local population to take up the sport of sailing, which has played a huge role in the UAE’s heritage.

“Of course, it also allows us to demonstrate to a receptive worldwide audience Abu Dhabi’s great water sports capability and encourages further inward investment in this sector,” he explains.

Bricks and mortar benefits are easy to see, understand and use at the weekend. But large events also come with more intangible benefits that are harder to measure. But being difficult to pin down doesn’t mean they are ignored. In fact, as Al Dhaheri explains, the

Of course, we also want the maximum positive worldwide publicity that we can out of them.”

Lewis Hamilton celebrates becoming World Champion at the 2014 Formula 1 Etihad Airways Abu Dhabi Grand Prix.

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We have to choose events which can translate into good business for the emirate.

TCA Abu Dhabi requires return on investment, brand measurement and media values to be quantifiable and standardised against annual measurement and tracking.

“Brand measurement is tracked via independent specialist research companies,” he says. “Media tracking and specific market penetration can be tracked by television and media research companies.

“Customer satisfaction and event surveys are employed at every event to measure qualitative return on objectives and provide detailed, specific, event feedback. This feeds into the planning process and informs improvements for the following event.”

Among the factors uniting the many different events hosted by

Abu Dhabi, is their ability to attract world-class competitors, whether the best golfers, drivers, sailors or tennis players. By hosting events that bring in the household names there’s a guaranteed appeal for the audience that lives here, as well as an increased chance that people will visit Abu Dhabi to see the best in the world play and compete.

“All the events also demonstrate our ability to galvanise cross-Government and cross-stakeholder resources,” says Al Dhaheri.

If the emirate’s event track record thus far is anything to go by, then this galvanisation of resources has been a success. If that’s the case, it seems then that being a successful host is, like a number of the sports that are on display here, a team game. ◆

The yacht, Abu Dhabi, sails into Table Bay, winning the first leg of the Volvo Ocean Race.

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20 | Feature Big Events

The Abu Dhabi government is putting the capital on top of the leaderboard for global destinations with a cohesive sports-based strategy to raise the profile of the emirate, reports Stuart Matthews.

Go above, go beyond

When Abu Dhabi Ocean Racing sails into Abu Dhabi sometime around

the 11th of December, on the second leg of the Volvo Ocean Race, it will mark a homecoming for trimmer and helmsman Adil Khalid, a UAE national.

The professional sailor is competing in his second around the world adventure, having made his debut in the 2011-12 race, aged just 22. It was a landmark event both for him and his country as Khalid was the first Arab sailor to compete in the race – and complete it. That he did so in the same race in which Abu Dhabi debuted as a stop over made the achievement that much sweeter.

“Taking part in my first Volvo

Ocean Race campaign was a dream,” said Khalid, in a statement. “Now with a second chance at it, I want to make winning the reality. We are already so much further ahead in this campaign than before and I feel that I have learnt so much, yet have much more to prove.”

This time around the team got off to a good start. On 5 November the team crossed the line in Cape Town, South Africa, in first place, having beaten off tough competition in the 6,487-mile leg from the race’s start in Alicante, Spain.

The home crowd in Abu Dhabi will be hoping for a similar scene at the end of the 6,125 mile second leg. But if Abu Dhabi Ocean Racing crosses the line at the head of the pack again it will only be a bonus for

Adil Khalid, a UAE Olympic sailor, is a member of the Abu Dhabi Ocean Racing crew.

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a much bigger and more strategic sporting plan.

Events such as the Volvo Ocean Race, the F1 Etihad Airways Abu Dhabi Grand Prix, the Abu Dhabi HSBC Golf Championship and the Mubadala Tennis Championship are all selected for hosting by Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) on the basis of what they can do for the emirate. This means they are assessed against a number of criteria to examine the benefits of bringing these global events to town. While it might be a natural reflexive response to point to the idea of more tourists, the TCA Abu Dhabi is looking for benefits that run much deeper.

“We consider whether the event can deliver an element of igniting and harnessing national pride by involving a local team or individuals – as is the case with the Volvo Ocean Race where the UAE’s own Olympic sailor Adil Khalid is part of Abu Dhabi Ocean Racing,” explains Sultan Al Dhaheri, Acting Executive Director Tourism, TCA Abu Dhabi.

“We also like to judge whether the event can deliver a sense of community and gives us the opportunity to demonstrate local abilities and capabilities – again the Volvo Ocean Race allows us to do this and to leverage our rich maritime heritage.

“We also have to judge the event’s ability to foster or re-ignite a community, as is the case with the

Volvo Ocean Race hosting, when we encourage the local population to take up the sport of sailing, which has played such a huge role in our heritage.”

All these benefits come at a price, but it is one carefully calculated to deliver value. As an example, playing host to the Volvo Ocean Race required the spending of significant public funds on site preparations and promotions, but has left what Al Dhaheri describes as a ‘healthy infrastructure legacy’.

“The hosting of the Volvo Ocean Race in December 2011/January 2012 generated a total economic impact of €38.9 million in gross output, which produced an incremental €20.4 million in

We also like to judge whether the event can deliver a sense of community and gives us the opportunity to demonstrate local abilities and capabilities.Sultan Al Dhaheri, Acting Executive Director Tourism, TCA Abu Dhabi

Asia and the Pacific, the Middle East and Africa to increase their market shares by 2030

Middle East3%

Africa3%

Europe63%

Asia and the Pacific

8%

Americas23%

1980

Europe51%

Africa5%

Middle East6%

Americas16%

Asia and the Pacific

22%

2010

Europe41%

Africa7%

Middle East8%

Americas14%

Asia and the Pacific

30%

2030

Source: World Tourism Organization (UNTWTO)

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22 | Feature Big Events

UAE GDP and €6.1 million in labour income,” says Al Dhaheri. “The event sustained a full-time-equivalent of 442 annual jobs and our participation in the race with Abu Dhabi Ocean Racing produced a return on public investment of nearly 170%.”

These are strong numbers, especially when you consider that globally, many large sporting events struggle just to hit the break even point. On top of that TCA Abu Dhabi calculates that visitors to the stopover spent an average of $222 per person per day, and a total of $9.7 million, figures which exclude spending by local residents. In this context, it is clear that top sporting events can have a significant impact on Abu Dhabi and the UAE, as they have around the globe.

This impact is not surprising when you consider that according to data from Sportcal, a sports research company, nearly 90 million spectators have attended the world’s leading sporting events in the last eight years. The figures come from a study conducted on 529 major multi-sport games and world championships, which averaged 167,000 spectators per event.

The events studied, representing

73 sports, were held between 2007 and 2014 and were hosted in 556 cities, from 84 countries. While people tend to agree there is huge value behind this mass of events, how that value is measured varies.

“No one really understands what the power of sport is in an objective and quantifiable way,” says Jon Coxeter-Smith, lead consultant – Global Sports Impact (GSI) Project, Sportcal. “People all measure it differently. There is no common methodology for establishing the important indicators for the impact of sport across a broad range of areas, or from a broad range of perspectives.”

This, says Coxeter-Smith, makes it hard to compare different locations and the impact events have on them. “We’ve set out to fill in the holes and establish what people think is important,” he says.

Coxeter-Smith is referring to his organisation’s Global Sports Impact (GSI) project, which aims to identify all of the impacts that a sporting event creates, not just the economic benefits like tourism, but other social, environmental, media and sporting impacts. Coxeter-Smith suggests that the benefits may include factors such as accelerated

Lots of governments use sports events to define or provide a catalyst for infrastructure development.Jon Coxeter-Smith, lead consultant – Global Sports Impact (GSI) Project, Sportcal

Lewis Hamilton celebrates winning the World Championship at the 2014 Formula 1 Etihad Airways Abu Dhabi Grand Prix.

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The Economic Review | 23

infrastructure development.“Lots of governments use sports

events to define or provide a catalyst for infrastructure development,” he says. “The advantage is there are set dates that improve the likelihood of [the development] happening. In terms of mobility in the country and competitiveness, economies are benefiting from the enhanced infrastructure sooner.”

Coxeter-Smith says that when it comes to other factors, the GSI project is also looking at an event’s impact on elite sports performance, as well as how they influence the participation of the population, their health and the development of volunteering. Added to this is the idea that the impact of an event can also include promoting

a city as a recipient for foreign direct investment.

“The developed assets can be an exemplar and a torch for improvement,” says Coxeter-Smith.

He believes that with these factors in mind it is important that cities looking for events should do as Abu Dhabi has done, and look for events that fit with development plans. “In effect, a major sporting event could be the opening night party of the development of the city,” he says.

If an event is seen as a means to an end, rather than an end itself, then their scale and scope start to make more sense and are more likely to tie in with a city’s long-term plans.

“On the cost side, depending on how much you have to invest for an event, if you are organising

A sell-out event every year since the inaugural race in 2009. The Abu Dhabi Grand Prix extended its contract this year

to remain on the F1 calendar beyond 2016. The size of the extension has not yet been announced.

In 2014, Yas Marina Circuit expanded its capacity to 60,000, a 20 per cent increase since 2009.

The 2014 race weekend welcomed more than 125,000 local and international spectators to Abu Dhabi, representing more than 120 nationalities.

More than 250 yachts from all over the world, a 25 per cent increase on 2013, descended on Yas Marina for the 2014 race.

A staggering 8,550 litres of specially commissioned paint was used to spruce up the circuit.

ForMulA 1 Abu DhAbi FActs

More than 125,000 local and international spectators

attended this year’s Abu Dhabi Grand Prix.

Leisure, recreation and

holidays25%

VFR, health,

religion, other 27%

Business and proffessional

14%

Not specified

7%

Global inbound tourism by purpose of visit, 2013*

Source: World Tourism Organization (UNTWTO)

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24 | Feature Big Events

a big event and you are building new venues, which will not get intensive use later on, in most cases it is not beneficial for society,” says Michiel de Nooij, an economics researcher with an expertise in sports economics. “If you have an existing facility, well that’s fine from an economic point of view, but it’s not going to make you rich. What’s important is to look at how facilities fit into the community as a whole.”

De Nooij stresses that the social benefits of an event are often a better way to look at outcomes, rather than measuring them in dollars.

“From an economic point, it makes more sense to look at the social costs and benefits,” he says. “If the event is a big party, that’s fine; that’s a better way to look at it than looking to earn money.

“In an up and coming tourist destination like the UAE, large sporting events might also work as an advertising mechanism, where you benefit if your city or country gets marketed in a better way.”

A case in point is the Abu Dhabi Grand Prix. In 2009, its inaugural year, it sold 50,000 tickets, was televised to 188 countries and watched by a global television audience of 55 million people. Last year, figures compiled by TCA Abu Dhabi and the World Tourism Organisation showed an increase of 37 per cent in guest arrivals in August (the month the race was held), while hotel occupancy increased by 17 per cent. This, in

turn, raised the total revenue for hotel establishments for August by 32 per cent to Dh336m.

With events also come stress points. They can put pressure on city-transportation and infrastructure systems and lead to accusations of the building of ‘white elephant’ sporting facilities.

“However, realistic assessment and significant pre-planning should inform decisions on whether infrastructure build can be transformed into useful and profitable legacy structures,” says TCA Abu Dhabi’s Al Dhaheri.

“The events run in Abu Dhabi demonstrate clearly to the world the emirate’s capability in delivering quality events to international, often benchmarking standards. We also get to show off our world class sporting facilities and great winter climate.

“Let’s face it, anyone snowed in their homes in Europe watching the Abu Dhabi HSBC Golf Championship on television in January has to wish to be in the UAE capital, where the temperatures around that time hover around 18 degrees Celsius and there is an average of nine hours of sunshine daily.”

The same may be said of those lucky enough to be on the start line of the third leg of the Volvo Ocean Race, come 3 January 2015. But once the party is over and the dust has settled, most will be hoping the event goes above and beyond expectations. ◆

What’s important is to look at how facilities fit into the community as a whole.Michiel de Nooij, economics researcher

The 2014 Abu Dhabi International

Triathlon, organised by Abu Dhabi Tourism &

Culture Authority, was sold out with a line-up

of 2,400 triathletes from 68 countries.

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Welcome | 25

Cover by Tarak Parekh

The Economic Review is a quarterly publication issued by the Abu Dhabi Council for Economic Development.

Chief Editor Dr. Hadi Al Taie

Production Dima Al Bawardi

Abu Dhabi Council for Economic Development is a statutory body, established in May 2006, to facilitate economic diversification and growth through creating greater understanding, cooperation and engagement between the public and private sectors of the Emirate of Abu Dhabi.

Abu Dhabi Council for Economic DevelopmentPO Box 44484, Abu Dhabi, UAET: +971 2 418 9999, F: +971 2 418 9988, E: [email protected]: www.adced.ae @ADCED_TER

Published byMotivate Connect – A Division of Motivate Publishing

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© Copyright Abu Dhabi Council for Economic Development

Reproduction, copying or extraction by any means of the whole or part of this publication must not be undertaken without the written permission of the Abu Dhabi Council for Economic Development.

The views expressed in this publication are not necessarily those of the Abu Dhabi Council for Economic Development.

Special thanks to:

HE Jasem Al Darmaki, Acting Director General Abu Dhabi Tourism & Culture Authority; Sultan Al Dhaheri, Acting Executive Director Tourism Abu Dhabi Tourism & Culture Authority; Richard Armstrong, Director Solomon R Guggenheim Museum and Foundation; Omer Kaddouri, CEO and President Abu Dhabi Rotana Hotel Management Corporation; Abdulla Abdul Aziz Al Shamsi, Executive Administrative Officer of Cleveland Clinic Abu Dhabi; Sandeep Sinha, Vice-president, Healthcare Practice, Middle East, North Africa and South Asia, Frost & Sullivan; Jesse Vargas, General Manager Ferrari World Abu Dhabi