Tourism’s contribution to Dubai’s economy
contribution to Dubai’s economy
The growth and development of Dubai is the main factor that has made Tourism’s contribution to Dubai’s economy more significant than ever before. As a matter of fact, the emirate’s tourism industry has contributed more than forty percent to the gross domestic product (GDP) of Dubai during the last two decade. This is indeed a huge advantage and potential for the country so far, but there are still some areas that need to be focused more on.
Tourism in Dubai continues to be very successful as the World Health Organization (WHO) declared that the emirate is one of the few places in the world that offers a great health prospect. In fact, Dubai has been ranked first in the world for its “quality of life index”, which measures the standard of living, health, education and happiness of an individual. This is probably the main reason why a lot of tourists keep on coming to the emirate especially with the ongoing major event: the World Cup.
Despite all the mentioned glories and advantages, Dubai still needs to work on some issues that will make its growth and development more stable in the coming years. One such issue is the property boom that took place in the past decade. Since the year 2021, when the real estate prices rose almost fifty percent, the demand for commercial and residential properties in Dubai increased tremendously. Unfortunately, this led to the construction of too many buildings and projects that resulted to the flooding of the market and consequently, the decline of the prices of these properties.
Tourism’s contribution to Dubai’s economy
Despite the problems that the property prices brought about, they still represent a significant source of income for the government and other institutions within the emirate. One of these is the “Jumeirah Contractor Reserve” that was established to help in handling the huge demand for property by foreigners. The aim of this reserve is to alleviate the pressure on the developers by maintaining affordable property prices and preventing the construction of projects that will drive away the potential tenants.
In order to keep up with the demand, more people are now planning to invest in jumeirah properties in Dubai. A typical Jumeirah contract stipulates a maximum of twenty thousand dollars that can be earmarked for any projects within the emirates. The most prominent projects that have been made popular by foreigners include those in Burj Al Arab, Dubai Creek, Jumeirah, and Dubai’s business district.
Another major project taking place in Dubai that directly affects tourism is the building of the worlds tallest and fastest tower, Burj Al Arab. At present, the construction of this tower is underway and is expected to be completed by the end of next year. Another significant development taking place in the city in the coming years is the extension of the Dubai Creek waterfront area. Plans for this project are still under negotiation. The ultimate success of Tourism’s contribution to Dubai’s economy will therefore depend on whether the latter is able to successfully lure travelers from all over the world.