Hotel Market in the UAE Case Study

Exclusively available on Available only on IvyPanda® Made by Human No AI

The factors that influence the growth of the hotel industry in the UAE are political ones, including policies and spending; economic ones, including the development of supporting tourism, restaurants, and transportation industries and investments; and legal ones, including tax laws and regulations (Central Intelligence Agency; Geronimo par. 2). In this case, the most influential factors are economic that are associated with the development of tourism, entertainment, restaurants, and transportation industries. In addition, much attention should be paid to the customer’s purchasing capacity associated with changes in the household income rates (UAE Ministry of Economy 5).

Therefore, the analysis of the hotel industry’s progress in the UAE depends on determining the relationship between such variables as the growth of tourism and transportation business in the UAE and changes in the household income as independent variables, and the progress of the hotel industry in the country as a dependent variable. The situation in the hotel industry is also examined with references to the analysis of the relationship between such variables as the hotel industry’s progress and the contribution of the industry to the gross domestic product (GDP).

The most recent data provided by the UAE National Bureau of Statistics is related to the period of 2001-2012. According to the regression analysis of relationships between such factors as the growth of tourism and restaurant business and the growth of the hotel industry, the 20% growth in the tourism sector is positively related to the 17% growth in the hotel industry. The growth of the transportation infrastructure in about 10% is also related to the growth of the hotel industry (“UAE National Bureau of Statistics”).

In this case, changes in tourism and transportation industries as independent variables can be discussed as influencing the growth of the hotel industry in the UAE. In 2012, the buying capacity of tourists increased in about 32% in comparison with the data for 2001-2011, and this factor was related to changes in the hospitality sector in the UAE because of increasing the number of beds in hotels and expanding the hotel chains in the country (“The World Bank”; “UAE National Bureau of Statistics”).

The other part of the regression analysis includes the examination of the relationship between a growth of the hotel industry and changes in the percentage of contributing to the UAE’s GDP. If development of the industry is an independent variable, the percentage related to the growth rate of the GDP is a dependent variable. Having conducted the regression analysis on the growth of the hotel industry in the UAE during the period of 2001-2012, it is possible to state that during the period of 2009-2012, the percentage of the hotel industry’s contribution mostly increased because of positive changes in influencing factors (as it can be observed with the focus on the first part of the analysis), and during the period of 2009-2012, the GDP also changed, demonstrating positive outcomes.

In 2011, the percentage of contribution was 1.9%, and the UAE’s GDP was $38,930. In 2012, the percentage of the industry’s contribution was 2.0%, and the UAE’s GDP was $40,444 (“UAE National Bureau of Statistics”; “United Arab Emirates GDP 1973-2015”).

Referring to the conducted analyses, it is possible to identify such trends as the capacities to promote the development of the hotel industry while facilitating infrastructure and contributing to the growth of tourism and restaurant business in the country.

Works Cited

Central Intelligence Agency 2015, . Web.

Geronimo, Adelle. . 2014. Web.

2015. Web.

UAE Ministry of Economy 2013, Annual Economic Report. 2015. Web.

UAE National Bureau of Statistics 2015. Web.

. 2015. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2020, May 16). Hotel Market in the UAE. https://ivypanda.com/essays/hotel-market-in-the-uae/

Work Cited

"Hotel Market in the UAE." IvyPanda, 16 May 2020, ivypanda.com/essays/hotel-market-in-the-uae/.

References

IvyPanda. (2020) 'Hotel Market in the UAE'. 16 May.

References

IvyPanda. 2020. "Hotel Market in the UAE." May 16, 2020. https://ivypanda.com/essays/hotel-market-in-the-uae/.

1. IvyPanda. "Hotel Market in the UAE." May 16, 2020. https://ivypanda.com/essays/hotel-market-in-the-uae/.


Bibliography


IvyPanda. "Hotel Market in the UAE." May 16, 2020. https://ivypanda.com/essays/hotel-market-in-the-uae/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1