The Ajman Palace Hotel in the United Arab Emirates has generated a lot of
interest in the region, and some of the top brass managing the hotel are
excited about current growth and opportunities, but in comments on the
region’s tourism industry and economic outlook, some are questioning whether
that rosy outlook will continue.
A recent press release showed strong first-quarter revenues for the hotel
in 2016. The heritage resort with 254 rooms and top-tier services sits on a private beach
22 miles from Dubai International Airport.
The company’s management says all of the investment in pools,
beachfront development and interior design is paying off as the hotel
enjoys a competitive outlook.
“The
first quarter started slowly but finished very strongly.” Ferghal Purcell, the Ajman’s general manager, said
in a recent press release. “Undoubtedly, the UAE and Saudi Arabian holidays were
extremely positive for the Ajman Palace Hotel. We have outperformed our
competitors in terms of KPIs year on year. Our occupancy has shown significant
growth in comparison to 2015. … It reinforces the value of correct positioning in
the market place and an outstanding product.”
Although this particular hotel seems to be doing very well, success in today’s Gulf economy is not a
given.
Thomas Lippman, an award-winning author and journalist specializing in
Middle Eastern affairs, believes the tourism business in the general region faces
some headwinds.
Lippman said there are changes in the
destination appeal of cities like Dubai, where in the past, beach hotels and
other attractions made the regional port city a great starting point for
cruises. Some cruise companies, he said, are now thinking twice about calling on ports in the Gulf region.
Citing factors like the rise of the
Islamic state and other conflicts in the region, Lippman said the political
turmoil is hurting tourism, in part, because Westerners or others in places far
from the Middle East might not be able to distinguish between one
destination and another.
“What’s happening is that a lot of
people from other parts of the world don’t want to go there because it’s a
mess.” Lippman told the Gulf News Journal.
Lippman said, however, that concerns over
human rights issues in the region aren’t likely to have the same effect on
local businesses. Issues like censorship
and controlled freedom of expression are not usually big obstacles to tourist
trades and “not likely to make much of a difference,” he said.
