The tourism sector in the UAE is all set to reap benefits of the change in the emirate's visa policies, increased flight connections and the roll-out of mega projects as the second-biggest Arabian Gulf economy seeks to cement its position as the most popular destination in the broader Middle East and North Africa (Mena) region.
Tourist arrivals are set to rise in 2018 , buoyed by travellers converging on Dubai, one of the top commercial and business hubs of the GCC which accounts for more than half of all inbound travel to the country. Dubai received a record 11.58 million visitors in the first nine months of this year, a 7.5 per cent in increase from a year-earlier period, with the emirate's top three source markets – India, Saudi Arabia and the UK – maintaining their spots.
The growth numbers for the emirate, which is on track to reach the 20 million visitors a year target by 2020, are pretty much in sync with the global average. Destinations around the world received 1.1 billion visitors in the first ten months of this year, up by 7 per cent from the same period last year, according to the World Tourism Organisation.
Meanwhile, Abu Dhabi is also on track to surpass last year's figure of more than 4.4 million hotel guests after it welcomed in excess of 4.3 million hotel guests in the first 11 months of the year. The emirate is on target to reach a record 4.9 million guests by the end of this year.
“Key factors impacting tourism performance this year was visa on arrival policy offered to many countries during the year… especially, from China and Russia, which are important source markets with higher average spend by the tourists,” said Rabia Yasmeen, an analyst at Euromonitor International.
“Rising disposable incomes followed by growth of middle income consumers in developing countries such as India and Pakistan is giving rise to aspirational tourists for whom travelling to the UAE is both process-friendly as well as cost-efficient.”
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Dubai tourist arrivals surge 7.5% in first nine months
Abu Dhabi welcomes more than 3.5 million guests so far this year
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The UAE is undertaking mega projects such as Dubai's Expo 2020, building theme parks and museums and developing more hotels to help attract a greater number of tourists as part of plans to wean its economy off oil and generate alternative lines of revenues to bridge the fiscal deficit. The diversification efforts are paying off with projections of continued growth in tourist arrivals.
According to Euromonitor, inbound arrivals to the country are estimated to reach beyond 22 million visitors in 2017, a growth of 4.8 per cent that is expected to be replicated in 2018. BMI Research, a unit of the Fitch group, however has a more conservative estimate of 19.8 million visitors for 2017 and 21.1 million 2018. The research group is forecasting tourism receipts of US$33.5 billion for 2017 and $37.9bn for 2018.
"A number of factors will drive growth in the market including sustained economic diversification efforts, heavy infrastructure projects investments and the ongoing effort to attract global and regional holidaymakers and business travellers alike," said BMI in a research note. " Visitor numbers are growing rapidly and the UAE benefits from a relatively diverse inbound travel market which brings some stability to the [tourism] market."
There were a number of significant milestones achieved this year and more will crossed in 2018, which will help solidify the UAE's position as a tourism hub.
Abu Dhabi opened the Louvre in November, the second such museum in the world, with much fanfare and the authorities are working on finishing the Guggenheim Museum. The Dh3.7bn Indoor theme park attraction Warner Brothers World Abu Dhabi is set to open next year on Yas Island.
In Dubai, DXB Entertainments is forging ahead with building a Six Flags theme park set to open in 2019. It will be the third attraction in addition to the exiting Motiongate, Legoland Dubai and Bollywood Parks Dubai.
These developments will also help drive associated hotel sector's development in the UAE, particularly mid-scale establishments to cater to the needs of tourists in the middle-income bracket .
“Looking at demand, India and China remain major growth markets in 2017, and the expectation is that this will continue throughout 2018,” said Ali Manzoor, an analyst at consultants Knight Frank. “Given the growing middle class, increasing flight connectivity, and physical proximity to both markets, it is likely that we will see the development of quality internationally branded mid-scale hotels that cater to this segment.”
But the continued supply of new rooms is also putting pressure on rates. For example, occupancy across Dubai in November fell 2.7 per cent year-on-year to 87 per cent as supply rose 5.6 per cent and demand edged up 2.7 per cent, according to data provider STR Global. The revenue per available room or RevPar – a key gauge of industry's health – fell 3.8 per cent to Dh655.84. There are over 29,000 rooms under construction in Dubai, and more than 4,000 in Abu Dhabi, according to STR.
"Dubai has seen a levelling out in terms of performance that has seen a drop in rate over the last few years, primarily related to the amount of supply being added to the market," said Marko Vucinic, senior vice president and acting head of Hotels & Hospitality Group Mena at broker JLL.
“In general we see the investment returns (IRRs) softening across the key markets in UAE (Dubai, Abu Dhabi). In response, developers are looking into ways to differentiate themselves by reassessing their product offering.”
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The End of Loneliness
Benedict Wells
Translated from the German by Charlotte Collins
Sceptre
In%20the%20Land%20of%20Saints%20and%20Sinners
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ERobert%20Lorenz%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Liam%20Neeson%2C%20Kerry%20Condon%2C%20Jack%20Gleeson%2C%20Ciaran%20Hinds%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A
Global institutions: BlackRock and KKR
US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.
KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.
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Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)
Most wins by a jockey: Jerry Bailey(4)
Most wins by an owner: Godolphin(9)
Most wins by a horse: Godolphin’s Thunder Snow(2)
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
Anti-semitic attacks
The annual report by the Community Security Trust, which advises the Jewish community on security , warned on Thursday that anti-Semitic incidents in Britain had reached a record high.
It found there had been 2,255 anti-Semitic incidents reported in 2021, a rise of 34 per cent from the previous year.
The report detailed the convictions of a number of people for anti-Semitic crimes, including one man who was jailed for setting up a neo-Nazi group which had encouraged “the eradication of Jewish people” and another who had posted anti-Semitic homemade videos on social media.
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Day 4
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Sri Lanka 336 & 226-7 (target 301)
Sri Lanka require another 75 runs with three wickets remaining
