The Future of the Transportation Tourism in United Arab Emirates - Essay Example

The Future of the Transportation Tourism in United Arab Emirates / Abu Dhabi Introduction and Executive Summary The role of tourism and transportation in Abu Dhabi can be viewed as two essential elements that have a large influence on the development of the region. Though the United Arab Emirates cannot be said to rely entirely on tourism as one of its top moneymakers due to its rich storage of natural resources, it is still an important factor in the development of the government’s plan to diversify its GDP sources. However in order to successfully achieve its objectives, the government will need to maintain a focus on these industries and their development. This will include additional involvement by the government in the assistance of the various public and private organizations that are factored into the aforementioned sectors. The relationship between the transport and tourism industry is through the design of the two sectors in terms of the services offered. An improvement in the transport industry will directly affect the tourism industry since one will logically need a means of getting to the country and once there, moving from one place to another. Taking a look at the design of the transportation system in Abu Dhabi allows one to get a sense of the different alternatives available to tourists who arrive there. This can then be related to the tourism industry through the available destinations that can be found in the region (Mariam and Taylor 2004). The tourism industry can be said to be the leading subject matter in this report supported by the transportation sector as a correlation. Industry Overview and Relevance on a Global Scale Tourism has to do with individuals from another country visit the region for pleasure. Though tourism cannot be said to be the main source of revenue in the United Arab Emirates, it offers a significant potential for the GDP’s growth (Cavendish 2009). This is due to the fact that Abu Dhabi is a largely popular destination for tourists, and thus a large number of people tend to visit the region. This means that the commercial potential of the tourism industry is huge and thus is a factor that cannot be ignored. This is especially significant since the government of Abu Dhabi aims to find new means of financial revenue in a bid to not to wholly rely on oil as their main source of revenue (Muller 2008). This is in a bid to ascertain a stable economy that does not rely on resources such as gas and oil whose value is slowly decreasing as alternative and cheaper sources of energy are discovered. The transportation industry is tied to tourism as a complimentary service and sectors such as the air and road travel. Air travel will be the main transportation service used to bring in tourists and road travel would be the main mode of transportation once within the country. The transportation network found within the UAE can be described as a reliable with a design that allows individuals to reach the main tourist havens available within the region. Abu Dhabi – An Emerging Tourist Destination Abu Dhabi is the capital of the United Arab Emirates and is the second highest populated city in the country, making it one of the top destinations for people visiting the UAE (Foreman 2009). The climate can be described as a bit dry as a result of its geographical location. The desert climate may sound uncomfortable, but the design of the city including its buildings ensures that the controlled atmosphere remains cool and enjoyable. The climate also consists of clear blue skies that are available throughout the whole year that makes for the wonderful weather. The period between March and November is actually cooler than other months and is the ideal time for tourists who may not be too comfortable with high temperatures. Abu Dhabi is the richest emirates in the UAE which makes it well-equipped to deal with any potential investments with regard to their tourism sector. It has a number of five star hotels available in the city as well as other resorts that make sure there are available alternatives for any tourists visiting the region. Though the economy is strong, this also leads to high pricing for goods and services in some parts of the region. The taxation, however, is very favorable for residents, and this makes it economically advantageous for people who choose to live there. It should be noted that January is the coolest month of the year thus making it the most popular period for tourists. Abu Dhabi holds Immense Potential in Tourism The tourism industry in Abu Dhabi is a fast growing one as earlier mentioned, and this is because of various internal and external elements that are present in the region. One of the most influence external elements has to do with the government’s dedication to making tourism a viable option for a reliable source of revenue. The government’s need to enhance the focus on tourism as an alternative or additional source of GDP has meant it has legally done what they could to ensure that concerned parties such as investors are able to have an easier path in terms of elements such as setting up related businesses and the like (Osman 2012). The Abu Dhabi government itself has become a major investor in tourism itself which has played a significant role in the strides that the region has been able to make in such development.= However, other issues need to be addressed if the government plans to be successful in its promotion of tourism as an alternative source of regional revenue instead of/in addition to natural gas and oil (ECSSR 2007). Some of these issues include elements such as external competition that can be found in the other Emirates such as Dubai, which is also a huge tourist destination (Low 2012). The main elements of external competition would be concentrated in such regions as they provide the most direct form of completion for potential tourists. Other issues could also include the involvement of Abu Dhabi residents and citizens in the tourism industry. For a country to be successful in such a national matter, the move will need to be accepted not only by legislators, but by people who will be directly affected as well (Walsh 2008). These include those who will set up related/support businesses, for example, to ensure that the industry is able to thrive. Tourism as a Reliable Economic Alternative to Natural Resources Tourism can be considered to be one of the best alternatives available to natural resources and as such it is understandable why the Abu Dhabi government has been committed to its development. Though it should be noted that the amount of revenue received from natural resources is significantly large and in lieu of this, it will be difficult for the tourism sector to emulate such figures on its own (Quintero and Peevers 2012). This does not mean that the potential revenue from this industry is insignificant either and with the potential for growth, the country will be able to list it as one of its major earners in a few years. The main advantage of tourism is the fact that it can be listed as an inextinguishable source of revenue due to its longevity in nature. Unlike natural resources, the tourism industry cannot be literally tapped out as it consists of a source that the world is not exactly able to run out of, that is, people (Davidson 2009). Provided people are willing to visit the region, there will always be a tourism industry, and that is one reliable characteristic that makes it a wonderful alternative revenue to natural resources. The factors that may influence tourism in most cases deal with elements that are under the government’s control or in the least can be influenced via methods such as legislation. This is because most factors that affect tourism directly relate to subjects such as the political state of the region, level of security and personal safety (Cordesman 1997). Tourists tend to visit areas that can be defined as stable in terms of such matters as they wish to enjoy themselves which cannot be done in an unsafe environment (Goodburn-Brown, D et. al 2010). Other elements such as tourist attractions and financial/economic incentives can also play a role in the number of tourists that visit the region as well as the ease with which they are able to gain access into the country. All these are items that can be approached and influenced by the government for the better so it can be said that legislation proves to be a more effective tool in such scenarios than it would in matters beyond man’s control (High Beam Research 2007). The natural reserves can only be controlled with regard to issues such as how much of the resources are extracted, but the amount of oil available remains the same no matter what changes are made. In the case of tourism, positive changes can lead to positive results and the government can be able to influence the number of tourists that visit the region through doing their best to attract as many people as possible. How the Government Supports Tourism There are a number of ways in which the government is able to support tourism both directly and indirectly and Abu Dhabi has implemented a number of strategies in the quest for achieving this objective (that is, the promotion of tourism). Direct involvement by the government in the tourism sector can be seen in a number of areas such as the promotion of the country as a tourist destination to the rest of the world. This is acheived in various ways such as advertising on satellite TV and holding of seminars and conferences with individuals and organizations that are involved in tourism (High Beam Research 2007). Such gatherings are meant for the giving and collection of information between the two parties in a bid to give the government a better understanding of what needs to be done in order to improve the industry. The improvement of areas such as public utilities like roads and buildings can also be seen as a step in the right direction with regard to the enhancement of Abu Dhabi as a popular tourist destination (Waleed 2008). This is because the aesthetic value of a region can directly affect the number of tourists that it is able to attract (Abu Dhabi.Com 2015). Indirect methods of involvement in the promotion of tourism can include actions such as the passing of legislature favorable to foreign visitors should they choose to visit the country. Such legislatures could include items that directly affect the individuals as tourists or companies that deal with tourists such as travel and booking agents (Sharply 2008). Abu Dhabi is already involved in this type of involvement which can be seen in the low taxes offered to businesses that are not in the oil trade. Granted this does not only affect tourism but it does play a large role in the decision making process of any company that wishes set up in Abu Dhabi, these could include businesses such as hotels and restaurants, transportation services and other retailers. The availability of these low taxes make Abu Dhabi an attractive place for one to establish their business and enable said businesses to offer cheaper rates/prices than would for example be available somewhere else due to the economic relief offered to them by the government through such incentives. It should be noted that these business tend to promote their services to the world and in the process promoting the region as an attractive tourist destination for potential travellers (Harrison 2001). Elements of PESTL regarding the Transportation Tourism in United Arab Emirates Political With the current terrorism threats in the Middle East, infrastructure in the UAE has been impacted as against the popular expectation in terms of the average growth in the nation. Additionally, the political turmoil and corruption in some parts of UAE is likely to impose restraint in terms of growth in UAE infrastructure. Economic trends The UAE government has been encouraging alternative funding sources for its infrastructure projects in the region. Additionally, the sustained investment in most of its projects based on the country’s projected demand is attracting private equity funds to financing UAE projects. This therefore means that, transportation tourism’s future across UAE remains in safe hands. Additionally, reverberations in oil prices along with the current diversification plans in UAE are expected to spur both road infrastructure and rail project activities across UAE. Social and Demographic The fast growing urbanizing UAE population is currently leading to pressure on UAE’s existing infrastructure that includes the transportation sector. In fact, other projections and infrastructure for the future shows that UAE has an urgent need of expanding and upgrading infrastructure development in the nation. Most of these factors act as drivers to UAE growth of infrastructure facilities. Moreover, tourism has exerted its influences hence adding to the country’s demand pressure. Technological The fact that UAE’s existing infrastructure is becoming insufficient especially in meeting its local and tourism demands, it means that the country would need to explore new technologies. The Region’s hydrocarbon wealth tends to attract sophisticated technologies across the globe. This aspect is also likely to spur construction. Technological developments help in fuelling growth in rail infrastructure, roads and bridges across the UAE region. Currently, unprecedented road, rail and bridges infrastructure development are underway. In fact, they will progress in future. Legal and Regulatory A major obstacle regarding the regional infrastructure development in UAE is lack of regulatory systems and uniform legal systems. Additionally, lack of mechanisms for dispute settlement makes it difficult for UAE to undertake projects that links UAE to other countries. Conclusion Abu Dhabi holds massive potential in the tourism sector, which can be exploited to become a key source of revenue for the region. The cultural diversity that can be found in the city also makes it a friendlier place so to speak, as tourists are able to feel more welcome with the presence of a large number of foreigners already living in the city (Walker 2010). This gives them a sense of acceptance that they are able to enjoy when making the trip to this destination References Abu Dhabi.com. 2015. Abu Dhabi Holidays - Abu Dhabi Travel Information and City Guide. 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Quintero, J, and Peevers, A, 2012. Dubai & Abu Dhabi. 7th ed. Lonely Planet, Footscray, Vic. Turner, R. (2014). Travel And Tourism Economic Impact United Arab Emirates. World Tourism and Travel Council. Appendix Key words Infrastructure development Dispute settlement Legal and regulatory Region’s hydrocarbon wealth Tourism sector Aforementioned sectors Appendix 2 (Turner, 2014) Appendix 3 (Turner, 2014) Read More