Reservations soar for a big weekend



ABU DHABI // The Red Bull Air Race and an influx of tourists from Eastern Europe have brought a surge in room reservations this weekend for hotels already reporting high occupancy rates because of near-perfect weather. Visitors from Russia and the Baltic states will be flocking to the UAE for a weekend in which they will mark Easter, which falls on April 19 in the Orthodox Christian calendar. In Abu Dhabi, they will be competing for rooms with fans arriving for the Red Bull event, which takes place over the water next to the Corniche public beach on April 17-18 and is expected to be watched by as many as 350,000 people.

Hoteliers in Abu Dhabi, Dubai, Fujairah and Ras al Khaimah have seen bookings soaring, in contrast with recent decreases as the global financial crisis hit the tourism industry. "Because of the Red Bull race we have a higher occupancy rate than usual," said Dania Malki, spokeswoman for Le Meridien in Abu Dhabi. "We still have a few rooms. Reservations are usually made a month or so before the event, but nowadays people are waiting until the last minute. During the event itself the occupancy rate will be higher."

Most of the guests are coming into the capital from other emirates, she added. Reservations clerks in Dubai hotels confirmed an influx of visitors from Russia for the Orthodox Easter holidays. One clerk in a Fujairah hotel said the boost in business was "because of the good weather, and because it's the Orthodox Easter this weekend." During the last winter holiday season, which coincides with New Year celebrations and Orthodox Christmas holidays, hoteliers reported a steep decline in the number of tourists from Russia.

Almost all of the high-end Jumeirah properties in Dubai are turning down reservation requests, citing high demand spurred by the weather. "It's just perfect weather. It's not too hot and I guess people want to get away before the summer," said a spokeswoman at the reservations desk at the Al Maha Desert Resort. At the Sheraton Dubai Creek Hotel and Towers, Deeksha Trivedi, the director of sales and marketing, said business hotels like hers have been faring well despite the downturn.

"Historically, the first quarter of the year is one of our strongest quarters with high occupancy averaging above 85 per cent and this year our numbers tell us that it's not any different," she said. "Which is a good indication that although the global economy has weakened and affected the travel trends, the demand is still there and going strong." In Fujairah, hotels are either fully booked or are expecting to be by Friday. At the JAL Fujairah Resort and Spa, the occupancy rate was at a healthy 93 per cent. Meanwhile, the Hilton Fujairah Resort was turning down guests yesterday.

Raza Abbas, the head of sales and marketing at the Hilton Fujairah, said the hotel was overbooked this weekend and that it had managed to maintain a high occupancy rate throughout the downturn. Fujairah in particular is known for being popular with Russian and Baltic tourists. Hotels were also heavily booked in Ras al Khaimah, where a number of new properties have recently opened offering discount rates for short breaks and getaways.

The new wing of the Hilton Ras al Khaimah still had a few rooms available, but the older Hilton Ras al Khaimah Resort and Spa was fully booked. The Cove in Ras al Khaimah, which opened in February, also said it was full. Maurice Di Rooij, general manager at The Cove, said many of the guests were taking an extended Easter holiday in the emirates. jgerson@thenational.ae

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Anonymous, Penguin Books

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Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
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COMPANY PROFILE

Name: Lamsa

Founder: Badr Ward

Launched: 2014

Employees: 60

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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.”

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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
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