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The impact of tourism in Dubai
The impact of tourism in Dubai
The impact of tourism in Dubai
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The second part of the Dubai’s opening strategy is the luxury tourism. Its potential customers are Europeans, Asians and Americans as well as wealthy businessmen from neighbor countries. The destination of "Dubai" has been built in recent years by tours operators on the following themes: beach activities, sun, desert, luxury shopping and modern luxury hotels. The evolution of the numbers certify the success of the tourism in Dubai: 600 000 tourists in 1990, 5.3 million in 2004, 6 million in 2006, 11 million in 2013 and the city hopes to welcome 25 million of tourists in 2020. Indeed, Dubai has been chosen to welcome the Universal Exposition in 2020. Because of this great news, they have raised their forecast of tourism visitors of 25%. They
It is a real Western market whom most consumers are cosmopolite and come from all over the world. Dubai is often described as the window and the test market of the Middle East area and the city is renowned to be a logistic and marketing platform for the
It is hard to determine one specific type of consumers given the diversity and the melting pot of the population in the city among the « foreigners » and the local population. The only true and concrete fact is that the Dubai consumer is knowledgeable, he knows the new trends on the market, what’s in, he is someone curious who always eager to learn. He likes the « beautiful » and fine pieces. However it is crucial to remember this key fact for the luxury industry: 20% of the population is composed by « local », by Emirates citizens. It is an important source for the luxury brands and groups that will find in Dubai a real target for their creations. This is especially the local population that will buy luxury products. Indeed, as we already say earlier, an important part of the population comes from Asia and represents the labor workforce of the city hence most of them don’t have the purchase power to buy luxury
Svinos, George, and Nick Debnam. Attitudes to Luxury Brands (TNS Survey). N.d. Raw data. Monash University, Shanghai, China.
The notion of luxury has been present in various other forms. The role was unique in earlier times as it is now. Earlier possessions of raja’s and maharajas were considered to be luxury. Division of social class structure led to this difference where luxury was limited to rich people that is whatever poor people cannot have and elite can this was termed as luxury. During the last 10 years, the luxury sector has undergone drastic change. Barriers that were present earlier has been lowered down due to globalization and social media. Globalization has spread like fire for the growth of fashion industry and market strategies have attracted the consumers significant shifts in cultural values and beliefs, consumer preferences and
Disneyland is one of the best-known brands worldwide, equally popular among all age groups. As a result Disneyland Dubai applies multi segment marketing in order to pinpoint its customer target market in several categories. Hereby it mostly separates its customers into “geographic, psychographic and demographic groups” (Waltdisneyco, 2011). Although Disneyland theme parks have a loyal customer base of which 70% are returning visitors, Disneyland adapts its strategies to fluctuations in the international demographic and psychographic market to constantly attract new clients. Travels are increasing, individuals are going back to traditional family values and today’s young customers will grow up and have babies of their own. Emerging from this “Disney parks are designed for the value of family life, long-distance travel, major vacation excursions and have grown to attain the status of national popular culture capitals among all ages” (King, 2004).
-Status symbols: Sophisticated customers who value the distinctive, exclusive collection seem to value the corporate-branded version of luxury. –Philip Martiz, chairman of the board
Trends that control the global luxury goods market are globalization, consolidation, and diversification (Tavoulari 1). Globalization is a result of the increased availability of these goods, additional luxury brands, and an increase in tourism. Consolidation involves the growth of big companies and ownership of brands across many divisions of luxury products. LVMH is one example, demonstrating to be one of the top luxury companies that dominate the market in segments ranging from luxury drinks to fashion and cosmetics. This growth in the luxury market has greatly extended the availability of luxury goods to a wider audience of consumers. Luxury goods have also become more affordable to a wider range of consumers due to higher incomes in a number of emerging markets, such as the Middle East, China, Russia, and India (Tavoulari 1). At one point you had to travel to Paris, New York’s 5th Avenue or Rodeo Drive to shop at the luxury stores. However, today you can find luxury brands in malls all around the country. You can also go online and find a wide selection of the luxury brands to shop to have delivered to your door. Examples are Gucci, Louis Vuitton, Prada, etc. Luxury goods are no longer limited to just the upper class. Like in the emerging markets, today more and more people feel entitled to luxury goods. They strive for an escalated lifestyle. It is now becoming an achievable necessity.
“Despite worldwide softness in the sale of luxury goods, LVMH has cemented its position as the world’s largest and most profitable player in the category. To stay there it must keep its customers loyal and its brand strong and find new markets worldwide” (Hazlett C. 2004). That is why in its mission they state to represent the most refined qualities of Western “ art de vivre” all around the world. Their objective is to be the leader in the luxury market, continuing to transmit elegance and creativity. This poses some major challenges, the main one is to keep being the leader in the luxury market through a sustainable growth. The main problem to achieve it is the high dependency on three main countries, France, Japan and USA. This becomes a threat because if there is an economic downturn in one country it affects LVMH directly that is why.
However, when looking to create a luxury brand, one must go beyond what is required of an ordinary brand, to create something of high value and therefore high prices. So instead of just having brand values, it should have brand beliefs, as this will create a stronger emotional connection with its customers. It should aim to go beyond having a logo, but rather a set of distinguishable icons and the brand’s points of sale needs to be somewhere that connects with its customers and becomes something of a pantheon among other retail outlets. Similarly the customer segmentation should have role reversal, so the customers want to buy their products. Luxury brands should instead of actively promoting their advantages over their competitors, never push the customers into buying their products, thereby offering mystique and letting the customers make the value creation. Lastly, a true luxury brand not only offers products but rather a way of life, allowing them to branch out over several product categories, into every aspect of their customer’s
Kapferer, J., & Bastien, V 2009, The luxury strategy: break the rules of marketing to build luxury brands. London: Kogan Page.
Personally what makes a brand “luxurious” is the atmosphere and the emotions one feels once walking into a flagship store. Every brand has its unique photography style; its own color pallet and even the logo can give it a sense of high quality and set off emotions. Each brand presents itself to the world in either a traditional looking way, with the use of old but long standing typography. “The lower floor…devoted to the heritage of the Vuitton brand: luxurious…But upstairs is a Marc Jacobs wonderland.” This too supports my viewpoint on the environment inside a store, it plays a big role into creating strangers into loyal customers, the way the brand has been branded inside
(2015) explains the importance of stakeholders with the tourism industry by explaining how each stakeholder influences the industry in offering new destinations, packaging destinations for new clientele, remarketing vacation destination and additional tour companies. Each industry stakeholder has their own agenda in achieving success, but the industry needs to work together in order to achieve success due to the highly competitive nature of business. Economically the industry has been expanding and developing tourism by offering a wide range of destinations and package vacations globally. The industry stakeholders are listening to the customers and offering unique and exciting destinations, thus increasing sales and opening up the tourism industry into a new
World Expos hold as a meeting point for people all over the world, where innovative ideas are shared and improve on issues that are internationally important, such as the global economy, or even an enhanced life for the world’s population. Expo 2020, which will be held in the heart of Dubai, will be one big step towards efficient development. The Expo will be held in the name of ‘Connecting Minds, Creating the Future.’ Their goal is to connect people and innovative ideas, leading the people of the world towards a better tomorrow. The Expo may have a gigantic effect on a country and its people, but it also has some downsides.
The economy can be clearly identified as the most beneficial aspect of tourism. “According to recent statistics, tourism provides about 10% of the world’s income and employs almost one tenth of the world’s workforce” (Mirbabayev, 2007). In Australia alone, Tourism contributed $87.3 billion in 2012, and employed 908,434 (7.9%) people (Kookana & Duc Pham, 2013). Tourism is “one of the most profitable and rapidly developing industries in the world” (Popushoi, 2004). Every year the number of tourists increase dramatically and consequently the revenues from tourism will increase substantially.
In recent years, tourism marketing has gone through strategic changes with the improvement in new technologies, the chase of a relationship between customers and suppliers as well as the importance of sustainability issues in marketing. Marketing Tourism reconsiders the needs of the tourists but does not overlook on the long term economic, environmental, social and cultural interests of the local population. So, it means that marketing consider both the tourist demand and effect to society as
Many investments for infrastructure construction in the destination primarily designed for the business tourists (hotels, restaurants, transportation…) provide economic profits, and they can also be enjoyed by local residents and leisure tourists.
Have you ever wanted to see the world’s richest country? That is covered with exotic beaches. Food that will defiantly cure your taste buds. Luxurious cars everywhere you turned your head. Seeing different people from all over the world coming to visit. A place that’ll for sure entertain you. To get a taste of this lifestyle that’s overseas, you need to visit Dubai.