Dubai
Faster, higher, wider?
Reflection of the Experiences during the MCI Study Tour 2012 Task. Please discuss critically the development of Dubai with regard to your findings and experiences during your visit. Basic literature. Balakrishnan, M. S. (2008): Dubai – A Star in the East. A Case Study in Strategic Destination Branding. Journal of Place Management and Development. 1 (1). pp. 62-91.
Approach. Own experiences Presentations during the visit Informal talks with locals Additional information, especially statistical data.
From a pearl fishing village surrounded by nothing but sand‌
‌to a glittering metropolis within 50 years
Thanks to oil and visionary leadership.
Unstoppable Growth in Dubai? Residents 1 1953 50.000
2011
2 Mio.
Hotel guests 2 2000 2 Mio.
2011
9.8 Mio.
13% annual growth of real GDP & 6% annual growth of GDP per capita between 2000 and 2005 3 Average income per capita US$ 47.500 in 2012 4 1 Dubai Statistics Center 2012
| 2 DCTM | 3 Government of Dubai, Department of Economic Development | 4 Forbes
Dubai‘s visionary Leader Sheikh Mohammad Bin Rashid Al Maktoum. Sheikh Mohammad is said to be a perfectionist who is always in search of new innovative projects and talents. He seems to be omnipresent for visitors who can see pictures of him everywhere and for residents who might meet him personally on one of his surprise visits. The visionary personality and empowerment of Sheikh Mohammad align all goals and intentions in one direction. He wants to make „Dubai a globally leading Arab city‚. Balakrishnan 2008: 64 ff.
Sheikh Mohammad‘s Approach to Development
Burj Khalifa als Symbol for Dubai‘s Ambition
Managing Dubai | Some Characteristics • Taking advantage of the spatial location (transit point, strategic hub) and the endowment with fossil resources
• Governmental involvement in virtually every new big project (DCTM 2012) • Fast development and implementation of creative and innovative projects • Aspects of finance are marginal (DCTM 2012)
Positioning Dubai
Positioning Dubai | Home of Superlatives Burj Khalifa. Burj Al Arab. The Palm. Dubai Mall. And Much More.
Balakrishnan 2008: 72
Positioning Dubai | Home of luxury Dubai Mall & Gold Souk
Balakrishnan 2008: 72
Positioning Dubai | Home of luxury Real Estate & Hospitality
Balakrishnan 2008: 72
Positioning Dubai | Family Activities For Locals & Tourists
Balakrishnan 2008: 72
Positioning Dubai | Activities Cultural Experiences & Conferencing & Outdoor Activities
Balakrishnan 2008: 72
Dubai | A hyperreal dream of 1001 nights?
Branding Dubai It seems that Dubai has not yet decided what is its key differentiator (Balakrishnan 2008: 81). • No emotions associated with the brand • No exact differentiation arguments
But Dubai is more than the sum of its landmarks!
Development of Dubai Dubai‘s Tunnel Vision. or‌ not everything that glitters is gold.
Development of Dubai Can this lead to sustainable development? Will the economy of Dubai be prepared for the times when oil is ebbing and financial resources might become scarce? Can Dubai bridge the gap between future orientation and preserving its cultural and natural heritage?
Development of Dubai | ECONOMIC FACTS. • Pegged Dirham to the Dollar which might close doors for US American investors but opens doors others, e.g. European ones. • 18% direct contribution to GDP of Dubai, 29% indirect • Tax free zones to create an attractive environment for trade
• Liberal property ownership law • Almost unlimited access to financial resources to realize new projects • Constant growth of GDP and income per capita in the past which ensured high welfare for citizens Balakrishnan 2008: 71 ff.
Development of Dubai | ECONOMY Dubai International Airport & Emirates Airlines. Aim to create a hub to link the world and a port to admit people to Dubai
Ambitions to create a mega-hub with positive synergy effects for further industries: • Manufacturing of aviation related components • Growth of Cargo Transportation • Attract Headquarters of Global Players • Tourism related positive effects like events, conferences, trade shows
O’Connell 2011: 339
Development of Dubai | ECONOMIC EXTERNAL EFFECTS Huge Impacts of the World’s Financial Crisis 2008 on Dubai, especially on the Real Estate Sector.
Perception of Dubai as Islamic nation. The perceived image of foreign countries depends extremly on the current global situation. The terror attacks of September 11, 2001 for instance had a huge impact on the image of Muslim countries. (Balakrishnan 2008: 68)
Development of Dubai | ECONOMY Burj Khalifa. Dubai‘s financial overload „Dubai‘s Burj Khalifa. Built out of opulence; named for ist saviour‚ The Globe and Mail, 4 January 2010
„Dubai tops ist troubles with tallest tower.‚ Financial Times Middle East & North Africa, 4 January 2010
„Offices stand empty in tallest tower, the Burj Khalifa‚ BBC, 21 July 2012
Development of Dubai | ECONOMY Having the ambition to open up every year a new flagship project (DTCM 2012), but forget to consider the demand side.
A mostly uninhabitited and empty „The Palm‚
Development of Dubai | ECONOMY & SOCIETY • Involvement of the government in mostly every project PRO aligning every project to the vision and guaranteeing sufficient finance CON no possibility for different ways of thinking to emerge and establish
• No factual determination of the population due to the political framework in the UAE: Federal presidential elected monarchy.
Balakrishnan 2008: 71 ff.
Development of Dubai | SOCIETY Migration issues.
Diverse cultures and nationalities due to the level of expatriates of 82% Educational policies of PPP’s and private companies to reduce the problem of brain drain Emirates Academy that offers a hospitality education of the highest standards and Jumeirah as owner of Emirates Academy offers students attractive jobs in Dubai after their graduation. Question of how to maintain security when tourists will outnumber residents by 4:1.
Balakrishnan 2008: 68
Development of Dubai | SOCIETY Dubai‘s two-tier society.
Development of Dubai | SOCIETY Dubai‘s two-tier society. Emiratis & Foreign Businessmen Highly educated & wealthy Dubai as first or second home
Foreign workers Live in Dubai to earn money without their families Bad education Mostly Indians, Pakistani, Bangladeshi
Several times higher income than the average of US$ 47.500 in 2012
Income below average at about US$ 1000 in 2012
Development of Dubai | SOCIETY Dubai‘s two-tier society & the impact on the tourism industry. Emiratis & Foreign Businessmen Potential consumers of tourism and leisure facilities due to their high income
Foreign workers Cheap labour force and therefore huge importance for the service dependent economy of Dubai
Great international brand ambassadors Marginal indirect impact on tourism based on their strong identification with Dubai as attractive place to live and to do business
Development of Dubai | SOCIETY How to preserve the cultural heritage in a multi-cultural society without blocking new modes of thinking?
Development of Dubai | NATURE Use of land without respect for nature.
Development of Dubai | NATURE Waste of the scarce resource water.
Is it ethical to build an artificial Ski slope in the desert only because you can afford it?
Is it ethical to waste tons of water every day on evaporation by running a huge water fountain only because you have the money to create an additional landmark?
Development of Dubai | NATURE Production of Energy.
Dubai generates currently 100% of its energy requirements out of oil. To reduce the use of fossil burning, there are plans of the UAE government to implement technologies of nuclear power. No efforts are taken to be able to use renewable energies. Balakrishnan 2008: 76, DTCM 2012
Development of Dubai | NATURE Waste of land, water and fossil energies‌ Is this sustainable resource management?
Conclusion Faster, higher, wider – Dubai?
Development of Dubai | CONCLUSION Dubai unterwent an extreme development at extraordinary pace owing to its fortune and the visionary leadership of the Sheikh with impacts on every part of life especially on economy and tourism.
It offers a good access to finance for its governmental owned cooperations and other companies to build up new innovative projects and tourism (related) facilities without being to much sticked to financial issues which creates a good environment for entrepreneurial activities.
Development of Dubai | CONCLUSION Aspects of sustainability were not factual considered yet. Some developments seem to be rather implemented without thinking about possible changes in and impacts on economy, society and nature.
Dubai should portion its ambitions to ensure its competitiveness in the future and to minimize risks of failure. The past three years and the huge impacts of the financial crisis on Dubai showed that even in Dubai, a place 1001 opportunities, there is no guarantee for unlimited growth.
References & Picture Credits.
References & Sources of Elaborated Thoughts Balakrishnan, M. S. (2008): Dubai. A Star in the East. A Case Study in Strategic Destination Branding. Journal of Place Management and Development. 1 (1). pp. 62-91. DTCM, Dubai Tourism and Commerce Marketing (2012): Welcome to the Dubai Experience. A presentation of Mohammad Abdullah Janahi with subsequent interview. 15.10.2012 Government of Dubai, Department of Economic Development (o.J.): Dubai Strategic Plan 2015. Available: http://www.dubaided.gov.ae/English/ecosrch/EconStudies/MgeContentsDocLib/DSP%202015%20En.pdf 05/12/2012. O‘Connell, J. (2011): The rise of the Arabian Gulf carriers. An insight into the business Model of Emirates Airline. Journal of Air Transport Management. 17 (2001). pp. 339-346. Own experiences made on the MCI Study Tour 2012 WTO (2004): Indicators of Sustainable Development for Tourism Destinations. A Guidebook. Available: http://www.iittm.org/doc/Indicators-of-Sustainable-Development-for-Tourism-Destinations-A-Guide-Book-byUNWTO.pdf 05/12/2012
Picture Credits Pictures by Daniela Aichner und Stefanie Dietrich 2012
Slides 5, 6, 8, 11, 12, 15-20, 22, 28, 36 & 37
Title Dubai at Night Burj Khalifa
http://sapgeo.deviantart.com/art/dubai-at-night-203258204 http://www.wallpaperswala.com/burj-khalifa/ http://farm3.static.flickr.com/2714/4245120861_5795f8a3a0.jpg http://payload50.cargocollective.com/1/7/234103/3301234/defdubai_13_900.jpg http://i.auto-bild.de/ir_img/5/8/6/0/1/2/oelquelle-474x316-5f5c0a20e87053ca.jpg http://www.rhetorik.ch/Aktuell/09/10_17/entwicklung.jpg http://www.mbrfoundation.ae/English/Pages/sheikhmohammedbio.aspx http://www.2daydubai.com/royal/dubai-royal-family_clip_image002.jpg http://www.sheikhmohammed.co.ae/Content%20for%20English%20site/ Add%20new%20content%20to%20English%20site/News/TempSheikhNews/ 2011/February/02-28/02/Dubaicustom-Big-1e.jpg http://www-scf.usc.edu/~ericsoli/DubaiLaborers.jpg
Brand Dubai Logo Oil source Satelite Pictures Dubai Sheikh Mohammad Bin Rashid Al Maktoum Sheikhs
Workers and Businessman
Dubai
Faster, higher, wider?