SMEs cash in on UAE tourism industry

DUBAI, UNITED ARAB EMIRATES, 06 MAY, 2015. Thomas Rebollini, Head of Finance, Sales and BD at Jaboot photographed at their booth on the Abu Dhabi stand at the Arabian travel Market in the Dubai World Show more

Tourism in the wider UAE has been a sector for big international operators and large national players, but the authorities are now pushing for smaller companies to feed off the industry’s growth.

Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) is encouraging local small and medium enterprises to bring their skills and expertise to the travel sector.

One such service provider is Jalboot, a ferry operator that will take visitors to the capital around its waterways and mangroves, stopping at four jetties along the way.

“We spent two years putting the business plan together,” said Tom Rebollini, the head of finance for Jalboot. “Once the proposition was understood by the authorities and the benefits outlined, we got fantastic assistance from the TCA and the coastguard.”

It took 18 months to get Department of Transport clearance, he said.

“Now we are ready with beautiful boats and scheduled to sail in September.”

The Khalifa Fund for Enterprise Development and TCA Abu Dhabi have also funded the development of a mobile app called DiscoverAE that offers a kind of treasure hunt through the capital.

The app was the brainchild of 25-year-old Farah Al Qaissieh, a first-time app designer, and has been given the support and encouragement of government departments and Abu Dhabi’s hotels.

“This app would not have seen the light of day had it not been for the Abu Dhabi Department of Economic Development and the Khalifa Fund,” said Ms Al Qaissieh.

“Through the fund I have been able to present to travel agencies and hotels, and through TCA Abu Dhabi I have been able to present to their affiliates.”

The app will make its revenue from the businesses it features and will be marketed “through those outlets and other agencies”, she said.

Hotels are also giving local SMEs regular business. Al Raha Beach Hotel’s chicken, fish, fruit and vegetables are being supplied by providers in Al Ain and elsewhere in the UAE.

“We take everything we can from local providers, from dates to meat,” said Kamal Zayati, the general manager of Al Raha Beach Hotel. “It not only benefits the community and country, but it keeps our costs down and the logistics of the supply chain are that much shorter.”

Mr Zayati also wants to buy soaps and shampoos locally. “There is no reason they cannot be produced here and it would cut all the import costs. The ceramics from RAK are the best in the world; why aren’t we making detergent?” he said.

Dubai’s Jumeirah Group has been at the forefront of bringing local SMEs into its supply chain, winning an award from Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, for its efforts.

Last year, Jumeirah had 36 registered local suppliers, a 9 per cent increase on the previous year, according to Piers Schreiber, the vice president of corporate communications and public affairs.

“We set incredibly high standards and stipulations for SMEs to meet before they can supply our company. However, the value of business to SME suppliers grew by 27 per cent in 2013-14,” he said.

“It is not only food and beverages that we source locally, but that is of course a staple. We use locally sourced dates and date products with specialist chocolates made with local nuts. We also source for the engineering side – spare parts for machines and chemicals for pools and specialist components.”

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