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* UAE tourism likely to generate Dh96.8b of economic activity

The UAE Travel & Tourism (T&T) is expected to generate Dh96.8 billion of economic activity (total demand) in 2006, growing in nominal terms to Dh170.7 billion by 2016.

The WTTC released its 2006 travel and tourism forecasts for the Middle East yesterday at the inaugural meeting of its Middle East Chapter. The announcements kicked off a week of industry events in Dubai including the Arabian Hotel Investment Conference and Arabian Travel Market.

Releasing research, now sponsored by Accenture and prepared by Oxford Economic Forecasting, which follows the United Nations standard for Tourism Satellite Accounting, Richard Miller, executive vice-president of WTTC, reported at a Press conference that the total demand in the UAE is expected to grow by 6.6 per cent in 2006 and by 5 per cent per annum, in real terms, between 2007 and 2016. The 2006 total demand represents 0.4 per cent of world market share.The UAE T&T industry is expected to contribute 1.1 per cent or Dh5.4 billion to the GDP in 2006, rising in nominal terms to Dh13.6 billion, or 1.4 per cent of total, by 2016.

Spending by foreign visitors in the UAE is expected to generate Dh37.1 billion or 8.3 per cent of total exports in 2006, growing in nominal terms to Dh62 billion (10.3 per cent of total) in 2016.

Amount spent on travel and tourism by residents in the UAE is estimated at Dh20.8 billion, or 8.8 per cent of total personal consumption in 2006. By 2016, this should reach Dh36.2 billion, or 7 per cent of total consumption. UAE business travel is estimated at Dh7.8 billion in 2006.

By 2016, this should reach Dh15.3 billion. The UAE travel and tourism capital investment by public and private sectors is estimated at Dh30 billion or 29.2 per cent of total investment in 2006. By 2016, this should reach Dh55.2 billion or 26.9 per cent of total.
The government travel and tourism operating expenditures in the UAE in 2006 are expected to total Dh1.1 billion or 2 per cent of total government spending.

In 2016, this spending is forecast to total Dh2 billion, or 2.2 per cent of total government spending. In the Middle East, WTTC is forecasting that travel and tourism is expected to generate $147.6 billion of economic activity (total demand) in 2006, growing
(nominal terms) to $279.4 billion by 2016. Total demand is expected to grow by 4 per cent in 2006 and by 4.4 per cent per annum, in real terms, between 2007 and 2016.

2006 total demand represents 2.3 per cent of world market share. In the world, 2005 set new records for travel and tourism.
Economic activity (total demand) exceeded the $6 trillion threshold, continuing the record robust recovery started in 2004 with 2005 growth of 5.7 per cent.

Taken from Khaleej Times