The new tourist attractions in Hatta unveiled on Saturday could turn the region into a global “bucket-list destination”, said one of the area’s leading hoteliers.
Details of plans to transform the enclave into an international tourist hot spot were announced on Saturday by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.
The project includes a sustainable waterfall attraction, an international hotel, a 5.4-kilometre cable car and hiking tracks leading to Jebel Umm Al Nusour, which at 1,300 metres is Dubai's highest peak.
Other plans, aimed at supporting global tourism, include the creation of 200 holiday homes.
Tourists will be booking weeks, if not months in advance
Deborah Thompson,
JA Hatta Fort Hotel
“This is going to be fantastic. We have already seen a considerable increase in tourism to Hatta, thanks to the development that has already taken place over the last few years,” said Deborah Thompson, general manager of JA Hatta Fort Hotel.
“Now we know Hatta is going to get worldwide recognition as a tourist destination.
“Who knows? Once the development is completed, Hatta could become a ‘bucket-list’ destination. Tourists will be booking weeks, if not months in advance.”
The enclave of Hatta is near the border with Oman. It has become increasingly popular among tourists, especially UAE residents.
Ms Thompson said tourists from all over the world had already started to flock to Hatta to take advantage of the numerous activities, and her hotel’s current occupancy was 20 per cent higher than in 2018.
This was despite the global restriction on movement caused by the Covid-19 pandemic.
“We have already seen tourism into the hotel nearly double in the past five years. We forecast to finish 2021 with 80 per cent occupancy, and it could even be higher,” she said.
“We are always 100 per cent at weekends, even during the summer months.”
She said more international visitors were expected to arrive than in the past.
“Traditionally, our business comes from residents of the UAE. However, before the pandemic we started to see more international guests travelling only to spend time in Hatta,” she said.
“Many were seeking adventure activities, so coming for the world-class mountain biking, as well as hiking, means we foresee that international travel will again return.”
The owner of a company that specialises in sports and recreation tours of Hatta said the announcement would be good for both businesses and the region’s community.
“It’s 100 per cent going to give Hatta a shot in the arm,” said Rakan Hyari, who owns Unlimited Crazy Adventures.
“There is so much to do here already but this is only going to take it to the next level.”
He said the announcement on Saturday would make the destination more popular with international guests.
“As of now, it’s about 30 per cent international visitors and 70 per cent UAE residents who are coming here,” he said.
“But once all these attractions are open to the public, I can see those numbers starting to reverse.
“It’s already an incredibly popular location but this is going to take it to the next level.”
The new attractions are part of a project that began in 2016, with tourist numbers rocketing from 60,000 then to one million by 2020, Sheikh Mohammed said in a tweet.
He announced initial proposals for Hatta last year, when he launched the World’s Coolest Winter campaign.
“The new projects of the Dubai Electricity Authority will provide 500 jobs for the youth of Hatta, and the new holiday homes will provide an annual income of more than Dh100 million for the people of the region,” Sheikh Mohammed said.
“A decent life for our citizens will remain our goal in all our projects.”
Dubai Electricity and Water Authority commissioned a consortium to build a hydroelectric station in Hatta, worth Dh1.4 billion ($381m), in 2019.
Mohammed bin Rashid Al Maktoum Solar Park will power turbines to pump water from the dam to the upper reservoir.
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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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A queen bee lives for 3-5 years
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