Abu Dhabi expects six million hotel guests in 2018, as the emirate ramps up efforts to promote tourism, the director-general of Abu Dhabi’s Department of Culture and Tourism (DCT) said.
"Visitor numbers have gone up, we ended the year 2017 with around five million hotel guests – official numbers have yet to be published but there is definitely a ramp up," Saif Saeed Ghobash told The National. "We have witnessed around a 10 per cent year-on-year increase which is quite phenomenal. For this year, as we have closed 2017 with 4.9 million hotel guests, we should hit six million in 2018."
The largest visitor increases came from India and China, as a result of the UAE introducing visas on arrival for Chinese tourists in 2016. New tourism products such as the Louvre Abu Dhabi and Warner Bros studios on Yas Island have diversified the offering for families and other tourists that visit the emirate, Mr Ghobash said.
“We continue to invest a lot in promoting the emirate abroad in our source markets and are very optimistic about the future,” he added.
Abu Dhabi is vying to grow its travel and tourism industry despite global and regional headwinds. The emirate received a record 4.4 million tourists in 2016, 8 per cent more from the previous year, according to official statistics.
The emirate is benefiting from widening its arts and culture offerings with the opening of the Louvre Abu Dhabi – the only regional presence of France's famed museum. Abu Dhabi hopes to attract art enthusiasts and other visitors from around the world.
A free mobile phone app will be launched by DCT on February 27 specifically aimed at promoting cultural activities in Abu Dhabi, Mr Ghobash said, in line with a state-commissioned television campaign launched this month.
The ‘Culture’ app is targeted at residents and visitors and is intended to provide information on Abu Dhabi’s “cultural ecosystem”, especially for digitally enabled millennials.
“One of our jobs as a department is to increase awareness of and preserve our culture by increasing engagement with it, and you have to keep up with the times. Maybe back in the day you’d publish books and go on roadshows at universities," Mr Ghobash said. "Today it’s just easy to make sure you have something easy to understand at your fingertips.”
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The emirate is also supporting start-ups operating in the tourism industry. A consortium that includes the DCT, Abu Dhabi National Exhibitions Company, Etihad Aviation Group and real estate developer Miral – said they were partnering with venture capital firm Wamda Capital to launch an accelerator programme for travel and tourism-focused start-ups.
Each of the four organisations will put up $100,000 of capital to one of four winning start-ups that is most relevant to their business, and help incubate the start-up. Wamda will assist in the selection process and offer support and advice to participants. The initiative, called Fikra Labs, is also supported by the emirate’s financial free zone, Abu Dhabi Global Market..
“This is the first round that we are pioneering here and I don’t think it will be the last," Mr Ghobash said. "Fingers crossed we will see...more rounds of this and this could evolve into something grander than something with a platform of just a few weeks.”
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
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.”
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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FIXTURES
Thursday
Dibba v Al Dhafra, Fujairah Stadium (5pm)
Al Wahda v Hatta, Al Nahyan Stadium (8pm)
Friday
Al Nasr v Ajman, Zabeel Stadium (5pm)
Al Jazria v Al Wasl, Mohammed Bin Zayed Stadium (8pm)
Saturday
Emirates v Al Ain, Emirates Club Stadium (5pm)
Sharjah v Shabab Al Ahli Dubai, Sharjah Stadium (8pm)