Formula One fans helped Abu Dhabi to achieve its strongest month for hotel stays in two years.
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Hotels in the capital welcomed more than 206,000 guests last month - a 22 per cent increase on the same period last year, according to new data.
Occupancy stood at 77 per cent, the same as the previous November, despite an increase in the number of rooms available in Abu Dhabi.
However, the average length of stay shrank slightly in comparison with the same period last year and there were also small dips in spending on accommodation, food and beverages.
Nevertheless, this is expected to be a record year, withthe UAE's 40th National Day celebrations and the upcoming Volvo Ocean Race boosting visitor numbers.
Almost 2 million guests stayed in hotels in the emirate in the first 11 months of the year - a 16 per cent rise on the same period last year. Guest nights also rose 23 per cent.
Without putting the cart before the horse, said Lawrence Franklin, the strategy and policy director for Abu Dhabi Tourism Authority (ADTA), "we are confident that we will surpass our stretch target for the year".
Last month's hotel guest figures indicate how big events can generate business, he said.
ADTA's "stretch target" for next year is 2.3 million guests, a 15 per cent growth goal.
The year is expected to get off to a good start thanks to the Volvo Ocean Race. But it is not all expected to be plain sailing.
"2012 will come with some challenges, many of which will roll over from 2011," Mr Franklin said. "Not the least of these is continuing economic uncertainty in many of our major source markets including the euro zone, United States and more recently markets such as India."
More hotels will also be completed, creating extra competition.
But Abu Dhabi has consistently proven its capacity to grow and absorb additional accommodation, "even in trying times", he added.
"We have enjoyed growth in arrivals from all euro-zone countries and major growth from markets such as GCC, India, Russia and China," Mr Franklin said.
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The specs
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Power: 712hp at 6,100rpm
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Fuel consumption: 19.6 l/100km
Price: Dh380,000
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Director: Lee Isaac Chung
Starring: Glen Powell, Daisy Edgar-Jones, Anthony Ramos
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How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
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Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
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Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
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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Engine: Two-litre four-cylinder turbo
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Torque: 350Nm
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Price: From Dh167,500 ($45,000)
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