"Keep Discovering Dubai" will bring more than 2,000 travel industry professionals and media to Dubai from now until May.
"Keep Discovering Dubai" will bring more than 2,000 travel industry professionals and media to Dubai from now until May.

Dubai to win over tourism leaders



Tourism officials hope to dispel negative perceptions of Dubai in a campaign that will show world travel's opinion makers the emirate as it really is. "Keep Discovering Dubai" will bring more than 2,000 travel industry professionals and media to Dubai from now until May. The campaign would help change "current negative perceptions" of the emirate, a source at Dubai's Department of Tourism and Commerce Marketing said.

The source was referring to illegal dumping of sewage on Dubai beaches and reports of an outbreak of legionnaire's disease at a hotel, which were later disproved. At stake is the emirate's largest single revenue generator, worth Dh57 billion every year - 19 per cent of its economy. Hoteliers and tour operators welcomed the move by Dubai's Department of Tourism and Commerce Marketing (DTCM), in partnership with Emirates Airline.

"Bringing in people to see the emirate first-hand is going to make a huge difference," said Kulwant Singh, the managing director of Lama Tours, one of the largest operators in Dubai. "At a time when countries such as Malaysia and Singapore are at war with Dubai to snatch tourists from us, the DTCM is supporting the brand it has created and putting up a fight." The department will pay for familiarisation trips of three to four days to more than 1,000 of the travel agents and tour operators, and more than 300 members of the media, the source said.

"These two groups have been identified as our main target through which we will effectively influence potential travellers." The objective of the familiarisation trips is to provide travel agents and media with first-hand experience of desert safaris, restaurants and cultural attractions such as the Bastakiya neighbourhood near the Dubai Creek. "It looks like a great initiative to educate the retail travel agents," said Jeff Strachan, the area director of Marriott Hotels in the Middle East.

Since the start of the crisis, the leisure capital of the UAE has seen hotel occupancy rates and margins fall. So far, some hotels have decided to slash room rates by as much as 60 per cent, leading to a 26 per cent drop in margins in December compared with a year earlier, according to the US-based travel research firm STR Global. "As a result of the global credit crisis Dubai is witnessing a marked reduction in the number of international visitors," said the DTCM source.

"The objective of this initiative is to give people an experience that would positively impact them ... and to protect the future growth of the Dubai tourism sector." Some hoteliers said they thought the campaign should have been launched earlier. "DTCM was a little bit slow in its reaction," said Habib Khan, the chief executive of Planet Group, which has three mid-range hotels in Dubai. "We had already started to see that business was slowing down since last summer and nothing was being done."

The effects of the campaign would not be felt immediately, he added. "I expect that as hotels managers we will start to feel the difference in about six to 12 months time because the impact of these marketing plans is always long term." Ivor McBurney, the vice president of development at Hilton Hotels and Resorts in the Middle East, disagreed. "Sometimes if you launch a initiative too fast or right after a crisis, it gets lost in all the noise and becomes less effective," he said.

abakr@thenational.ae

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

UAE currency: the story behind the money in your pockets
$1,000 award for 1,000 days on madrasa portal

Daily cash awards of $1,000 dollars will sweeten the Madrasa e-learning project by tempting more pupils to an education portal to deepen their understanding of math and sciences.

School children are required to watch an educational video each day and answer a question related to it. They then enter into a raffle draw for the $1,000 prize.

“We are targeting everyone who wants to learn. This will be $1,000 for 1,000 days so there will be a winner every day for 1,000 days,” said Sara Al Nuaimi, project manager of the Madrasa e-learning platform that was launched on Tuesday by the Vice President and Ruler of Dubai, to reach Arab pupils from kindergarten to grade 12 with educational videos.  

“The objective of the Madrasa is to become the number one reference for all Arab students in the world. The 5,000 videos we have online is just the beginning, we have big ambitions. Today in the Arab world there are 50 million students. We want to reach everyone who is willing to learn.”

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially