ANALYSIS / EMERGING MARKETS
Etihad Airways, Abu Dhabi’s flag carrier, flies daily to Beijing, five times a week to Shanghai and four times a week to Chengdu. Dubai’s Emirates Airline, meanwhile, operates more than 180 flights a week to 10 locations in India, it also launched a dedicated Mandarin-language website for its Chinese travellers
In a report last year, UNWTO noted China has quadrupled
its expenditure on global tourism since 2000. According to the US Commerce Department, Chinese visitors spend an average of US$6,000 per visit, compared to the US$4,000 spent by other visitors. Dubai Convention Bureau (DCB), which opened offices in Beijing
and Shanghai in late 2010, generates 25 percent of its meeting and event business from the Asia Pacific region. The sector received a boost in 2009 when the UAE gained ‘approved destination status’ from Beijing, simplifying visa procedures and making it easier for tour agents to promote the country. “Before we began focusing on China and India, that number was
less than 20 percent,” says Karina Lance, Head of Sales and Convention Services at DCB. “It’s growing very rapidly.” This success is in part a nod to the existing trade ties between the
UAE and its Asian neighbours. The Gulf state was one of the first to relax entry requirements for Indian and Chinese companies in a bid to shore up business between the countries. In return, a slew of Asian corporates, including China National Petroleum Corp, China State Construction Engineering Corp and the Indian multinational Larsen & Toubro, have established offices in Dubai and Abu Dhabi, using the countries as a springboard to the wider Middle East. India was the UAE’s largest trading partner in 2011, while China held the number two spot. These ties have perks for the exhibitions industry, says Basel Abu Alrub, Managing Director of Dubai-based DMC uTravel. “The exhibitions business is explosive in Dubai and a lot of
Chinese and Indian companies try to tap the Middle East market by participating in shows here, such as The Big 5 and Arabian Travel Market,” he says. “We increasingly see delegates travelling to participate in these conferences and events.”
Above: Etihad Airways, Abu Dhabi’s flag carrier
Below: Dubai’s Emirates Airline
BUCKING THE TREND Direct flight routes have also aided the UAE in carving out a larger slice of the lucrative Asian meetings and events market. Etihad Airways, Abu Dhabi’s flag carrier, flies daily to Beijing, five times a week to Shanghai and four times a week to Chengdu. The airline has also begun code-share flights with China’s Hainan Airlines to bolster its reach into the Republic. Dubai’s Emirates Airline, meanwhile, operates more than 180 flights a week to 10 locations in India, including six daily flights to Mumbai and five daily flights to Delhi. The carrier launched a dedicated Mandarin-language website for its Chinese travellers in 2008. “Two-thirds of the planet resides within these
two countries, so they are hugely important for GCC airlines,” says Saj Ahmad, Chief Analyst at StrategicAero Research. “China and India still have barriers to entry, but that hasn’t stopped Arab airlines from knocking on the door.” Many of the UAE’s hotel chains and DMCs have
been quick to capitalise on this growing connectivity and with good reason. China’s meetings industry alone is a US$150 billion market, according to US-based meeting procurement agency HelmsBriscoe, with annual growth on more than 20 percent. Visible changes in the UAE include Chinese-language signage, menus and brochures on show in hotels, while many brands have invested in Chinese-speaking employees to help cater to a growing market. Dubai’s Arabian Adventures has appointed
staff in Shanghai and Beijing to increase corporate business, leading to an upturn in interest from Chinese companies.
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