Proposed topic - Research Paper Example

While making a direct contribution to economic development, the indirect effects also affect transportation, logistics and retail sales. These contributions constitute to the economy’s GDP growth of 45 percent. This is a significant indication of tourism as a powerful component with a multiplier economy effect. Globally, the total tourist population projects a strong continuous growth in the future. They key drivers to this population growth will be an increase in the ageing population in developed countries, higher levels of income, and lifestyle improvement.

Because tourism is mainly leisure, an improving economy puts more population at a position of enjoying this leisure. Given that the tremendous tourism growth affects the wider Dubai region, there is need for correct forecasting of this trend demand in order to enhance decision making on the major infrastructural investments. Precise predicting will also enhance evaluation of conjunctural planning and situation for flow in demand. This research study assesses the trend of growth in the tourism sector and the effects.

It examines the main indicators of tourist activities as measured using several approaches such as the number of guest nights, destination visited, age of tourists and gender. Background In UAE, tourism is one of the most profitable sectors. In this region, this economic activity acts leverage to the government in maintaining income of several foreign currencies to the UAE region. The main attraction to tourists is shopping. Other key attraction includes modern and ancient culture of the people living in this region.

In Middle East, the major shopping capital is in this region attracting investors and shoppers from Asia, Europe, Africana and other Middle East regions. In Dubai, tourists and other visitors get convenient access to shopping and sports conveniences, airports, hostels and resorts. Studies reveal that, between the years 2001 and 2009, UAE tourist sector experienced a boost as the returns from the sector grew to Dh 41 billion. In another study, Ryan (2009) established that tourism had the main economic significance and played a significant role in the UAE developed.

According to Stephenson and Ali-Knight (2010), the total economic impact from this sector amounted to Dh71 Billion. This study goes further to examine the capital investments together with the direct and indirect income generated from tourism and other economic activities. In his findings, Wakefield (2012) established that tourism contribution constituted to 7.8 percent of the economy’s GDP. The leading state was Dubai where the contribution was 7.6%. At the state level, the main tourism economy was Dubai at 66 percent.

Closely following Dubai is Abu Dhabi at 17 percent and Sharjah with 9 percent of the tourism economy. In the year 2008, tourism sector experienced a deflation. This downward trend emerged from the global economic crisis. However, the deflation did not go beyond 15 percent. The tourism sector is also responsible for job creation in the UAE economy. According to an analysis of Inhorn (2011), the tourism sector employs 160, 053 people. While most of this labor is imported, the citizens are the main beneficiaries from these employment opportunities.

Studies have examined the economic effect of tourists in UAE from three perspectives. One of these perspectives is the direct effect. This