Sheikh Hamdan bin Mohammed spoke of the 'exceptional growth in the inflow of visitors' to Dubai. Khushnum Bhandari / The National
Sheikh Hamdan bin Mohammed spoke of the 'exceptional growth in the inflow of visitors' to Dubai. Khushnum Bhandari / The National
Sheikh Hamdan bin Mohammed spoke of the 'exceptional growth in the inflow of visitors' to Dubai. Khushnum Bhandari / The National
Sheikh Hamdan bin Mohammed spoke of the 'exceptional growth in the inflow of visitors' to Dubai. Khushnum Bhandari / The National

Sheikh Hamdan says Dubai to lead the world in tourism, as new figures show boost


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Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, said the city wants to "lead the world" in tourism and hospitality, as new figures showed it came close to hitting pre-pandemic visitor figures last year.

Dubai recorded 14.36 million international visitors in 2022, the government said on Sunday. That compares to 16.73 million in 2019.

“The exceptional growth in the inflow of visitors reflects Dubai’s continued rise as one of the world’s most-connected cities and its determination to lead the world in hospitality infrastructure and service levels," said Sheikh Hamdan, also chairman of the Executive Council.

"The high growth shows the world that we never rest on our achievements and constantly work to raise our benchmarks.

"I am confident that Dubai will be an even greater catalyst for the growth of global tourism and travel connectivity in the years ahead."

Although some of the world's strongest tourist destinations have recovered well, global tourist travel last year was still 37 per cent lower than in 2019, UN figures show.

The city models itself as a "first-choice safe travel destination", with shopping, nightlife, luxury and desert adventure all thrown into the mix.

A news release from the Department of Economy and Tourism on Sunday said Western Europeans and Gulf visitors accounted for 21 per cent of arrivals last year.

South Asia accounted for 17 per cent, while Middle East travellers from outside the Gulf contributed 12 per cent.

The Americas accounted for 7 per cent, with the rest of Asia and Africa at 5 per cent, and Australasia at 2 per cent.

Helal Almarri, director general of Dubai’s Department of Economy and Tourism, reiterated a government plan set out by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, to put the city in the three most-visited in the world. That would rival long-established cities such as Paris, New York and Bangkok.

With the reopening of China after three years of Covid-related restrictions, visitor numbers from that key market are expected to grow significantly, experts told The National last week.

Dubai's best attractions: in pictures

  • The Museum of the Future, with its remarkable architecture, has quickly become a highlight for visitors to Dubai. Photo: DTCM
    The Museum of the Future, with its remarkable architecture, has quickly become a highlight for visitors to Dubai. Photo: DTCM
  • The Wild Wadi Waterpark in Jumeirah is one of the attractions that make Dubai a family-friendly destination. Photo: Wild Wadi
    The Wild Wadi Waterpark in Jumeirah is one of the attractions that make Dubai a family-friendly destination. Photo: Wild Wadi
  • The shops, cafes, bars and restaurants along Jumeirah Beach Residence in Dubai are popular among tourists. Photo: Reuters
    The shops, cafes, bars and restaurants along Jumeirah Beach Residence in Dubai are popular among tourists. Photo: Reuters
  • A jump at Skydive Dubai has become a must-do for daredevil visitors. Photo: Skydive Dubai
    A jump at Skydive Dubai has become a must-do for daredevil visitors. Photo: Skydive Dubai
  • Admirers will say that the Burj Khalifa, the tallest tower in the world at about 830 metres, is Dubai's most famous tourist attraction. Photo: Dar Al Arkan
    Admirers will say that the Burj Khalifa, the tallest tower in the world at about 830 metres, is Dubai's most famous tourist attraction. Photo: Dar Al Arkan
  • Visitors can enjoy an almost immersive experience of water and light at the Dubai Fountain. Photo: Alamy
    Visitors can enjoy an almost immersive experience of water and light at the Dubai Fountain. Photo: Alamy
  • A visit to Dubai often involves a trip to Al Fahidi Fort, with its dhow installation to celebrate the Gulf's maritime history. Photo: Alamy
    A visit to Dubai often involves a trip to Al Fahidi Fort, with its dhow installation to celebrate the Gulf's maritime history. Photo: Alamy
  • The ski lift at Ski Dubai inside the Mall of the Emirates. With its 22,500 square metres of skiiing, the centre is arguably one of the Gulf region's most eye-catching and unexpected attractions. Photo: AP
    The ski lift at Ski Dubai inside the Mall of the Emirates. With its 22,500 square metres of skiiing, the centre is arguably one of the Gulf region's most eye-catching and unexpected attractions. Photo: AP
  • Bluewaters Island, where the Ain Dubai wheel is located. Photo: Reuters
    Bluewaters Island, where the Ain Dubai wheel is located. Photo: Reuters
  • One of the pods on the Ain Dubai that offer visitors sweeping views of the city and Arabian Gulf waters. Chris Whiteoak / The National
    One of the pods on the Ain Dubai that offer visitors sweeping views of the city and Arabian Gulf waters. Chris Whiteoak / The National
  • The Ain Dubai lights up. Chris Whiteoak / The National
    The Ain Dubai lights up. Chris Whiteoak / The National
  • The Lost Chambers Aquarium at Atlantis, The Palm. Photo: Atlantis, The Palm
    The Lost Chambers Aquarium at Atlantis, The Palm. Photo: Atlantis, The Palm

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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Rating: 3.5/5

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Expert advice

“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”

Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles

“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”

Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre 

“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”

Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
 

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