Business tourists turning lucky for UAE hotels

RITIKA SHARMA / Emirates Business

When a recent international report rated Abu Dhabi as 73rd best business tourism destination, a rank up by 35 places from last year, the UAE hospitality industry was the first one to rejoice.
Not only does this rank affirm UAE’s position as a top business tourism hub, it also reflects the strong revenues that hotels across the country are generating through this new breed of travellers — ‘business tourists’.
Reports state that the number of business travellers to UAE is poised to grow given the upcoming mega events. Business travel spending in UAE grew by 3.3 percent in 2015 to AED25.5 billion, and is expected to rise by 2.6 percent per annum to AED33.0 billion in 2025.
Siddharth Mehra, General Manager of La Verda Suites and Villas Dubai Marina, told Emirates Business, “Business tourism is definitely booming. La Verda Suites & Villas Dubai Marina opened its doors to guests in December 2015, since then we have recorded over 80 percent occupancy, with substantial contribution from corporate tourists”
Mehra said that La Verda, which has reached number one on Tripadvisor under specialty lodging category, gets over 20 percent of its business from corporate accounts.
“We have started getting queries from government agencies, corporate houses and also directly from individual executive expats who are travelling for work or business, apart from scores of requests that come from leisure travellers. We plan to increase the number of such clients with the completion of our first year of operations and also with new tie-ups with more international corporate accounts,” he said.

Capital effect
According to a report released by the International Congress and Convention Association (ICCA), Abu Dhabi marked a significant surge over its 2014 performance, as a business tourism destination.
Desmond Hatton, General Manager of Dusit Thani, one of the most strategically located hotels in UAE’s business and government district of Abu Dhabi, told Emirates Business, “UAE is considered to be an epicenter of key business activities and engagements in the GCC region. Major corporate organisations, including several Fortune 500 companies, are based out of UAE. Therefore, UAE is one of the leading destinations for business dynamism and innovation in the Middle East.”
Hatton said he strongly believes that as tourism industry is constantly evolving, it is important for the UAE hotels to adapt to the new trends.
“Emerging business markets, especially Asia, offer tremendous opportunities for corporate inbound business to the destination, benefiting hotels in Abu Dhabi including us,” he said.
“Dusit Thani Abu Dhabi has made a place for itself when it comes to business travel and MICE (Meetings, Conferences, Incentives& Events). It is pertinent to mention that our business segments have now become more diverse and streamlined. Overall, the corporate business travel to our hotel looks optimistic,” he added.

SHIFTING FOCUS TO OTHER EMIRATES
However much focus remains on Dubai and Abu Dhabi, recently destinations like Fujairah and Ras Al Khaimah (RAK) have also emerged as alternative business tourism options for the corporates who are looking for a combination of work and leisure.
According to Fujairah Tourism & Antiquities Authority (FTAA), Fujairah has around 20 hotels and over 2700 hotel rooms making it one of the most important emerging markets for big business events. Reports state that by 2018, the Emirate is going to have over 5,000 rooms making it capable of hosting the influx of business tourists over the next years leading to Expo 2020.
Patrick Antaki, Complex General Manager Al Aqah Beach Resort, Fujairah and Al Maha desert luxury resort Dubai, told Emirates Business, “I manage two resorts that rely mostly on leisure business, I must admit there has been a rise in number of business tourists as well. Around 10 to 15 percent of our annual revenue comes from corporate events like incentives, conferences and events.”
It is evident that the UAE is becoming a global hub for business. Many companies meet up in the UAE, due to ease of access through the airline and the availability of varied accommodation from budget to luxury.
“The business meetings have different objectives and they are on the increase. A few years back, who would have thought that Fujairah can host major business events and international automobile launches? Things have changed and business tourists are coming to Fujairah. It is a good sign for hotels,” he said.
“Incentives meetings which are partly business and partly leisure, are also very popular. At Al Maha we receive more of the exclusive, board meetings kind events while at Al Aqah, we have the larger events,” he added.