ABSTRACT

The modern meetings, incentives, conferences, and exhibits (MICE) sector actively encourages the
responsible use of cultural, historical, and natural recreational resources and makes a significant
contribution to economic diversification. As of 2019, the United Arab Emirates' (UAE) tourism industry
contributed a total of 11.5% of the country's GDP. In 2019, more than 2.3 million visitors to Dubai cited
business as their primary reason for travel, an increase of 2% from the previous year. Thus, the UAE
MICE sector was a leader in the world prior to the COVID-19 epidemic. The majority of locations around
the world implemented COVID-19-related travel restrictions that were effective until May 2020 as a
result of tight quarantine measures. The coronavirus epidemic harmed every industry in the UAE, just
like it did in every other nation, but it particularly hit the MICE sector. Although the effects of COVID-19
have been extensively studied by numerous UAE researchers, little is known about their local and global
effects on the MICE sector, as well as the survival strategies for MICE enterprises. On the basis of those
operating in the UAE, this study sought to create a competitive survival strategy for tourist businesses
and examine the impact of COVID-19 on both the global and UAE MICE markets.

The study found that the UAE MICE business is experiencing a severe decline in demand due to the
country's strict travel restrictions and restricted borders. Hotels, Emirati Airlines, and other tourism-
related companies have suffered large material losses. The decline in regularly scheduled departure
flights accounted for 82% of the total. The 5P marketing approach and an outsourcing method were
recognized by the study's multiplicative analysis as the best options for ensuring the survival and
recovery of MICE businesses. Researchers and MICE companies can use the study's findings to build
solutions for overcoming the COVID dilemma and boosting the competitiveness of MICE businesses in
particular as well as the industry as a whole.

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TABLE OF CONTENTS
Chapter 1......................................................................................................................................................5
Introduction..................................................................................................................................................5
Tourism Industry.........................................................................................................................................5
What Are the Sectors Within the Tourism Industry?.......................................................................7
Main sectors..........................................................................................................................................9
Tourism in the United Arab Emirates..............................................................................................11
Statistics and facts about the UAE's tourism sector:......................................................................13
Overview of UAE tourism.................................................................................................................14
World Tourism Organization:..........................................................................................................17
Economic Impact Reports.................................................................................................................17
Tourism impact on businesses..............................................................................................................19
Total travel and tourism spending worldwide from 2019 to 2021, by type (in trillion U.S. dollars)
..................................................................................................................................................................22
The impact of COVID-19 on global tourism industries.....................................................................23
Problem Questions & Require Analysis:.............................................................................................24
Significance of the tourism sector in the UAE:...............................................................................25
Tourism impact on Sectors of UAE..................................................................................................28
Tourism impact hotels:......................................................................................................................29
Travel and tourism in Malaysia:..........................................................................................................30
Tourism industry OF MALAYSIA in recovery:..............................................................................33
Covid-19's effects on the UAE's tourism industry..........................................................................35
How will the tourism industry change as a result of COVID-19?.................................................39
Chapter 3....................................................................................................................................................40
Design & Implementation.....................................................................................................................40
Tourism post COVID-19 outbreak...................................................................................................40
COVID-19's Effect on the Real Estate Market...............................................................................41
The COVID-19's Effect on Education in the UAE.........................................................................42
Effect of COVID-19 on United Arab Emirates Daily Life.............................................................42
UAE Different Economic indicators effected by covid19:..............................................................45
Chapter 5....................................................................................................................................................48
Future enhancement/Action Plan.........................................................................................................48

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 Response and recovery plans for the tourism sector:.....................................................................49
Important socioeconomic factors for the recovery of the UAE tourism industry:......................52
A queuing model was suggested to maximize MICE enterprises:.................................................53
Recommendation/proposed course of action for the UAE's tourist and hospitality sector:.......53
CHAPTER 6...............................................................................................................................................57
Conclusion..............................................................................................................................................57
REFERENCES...........................................................................................................................................62

3
Chapter 1

Introduction

Tourism Industry

So, what does the tourist sector entail? To start, it's critical to establish what the term "tourism
industry" actually means. In essence, it refers to any activity involving the temporary relocation
of individuals to places other than their customary residence. It is one of the biggest sectors in
the world, and tourism plays a significant role in the economies of many countries.

The hotel business, the transportation industry, and a number of other industries or sectors are all
included in one broad industry. It is crucial to realize that the tourism industry is connected to

4
travel to various areas driven by leisure, business, and other travel-related factors. Having said
that, by the most popular definitions, travel-related activities where the traveler expects to stay in
their location for more than a year are not included in the tourism business. This essentially
means that long-term overseas students and expatriates are not considered to be tourists.

Simply said, a tourist is someone who travels for business, pleasure, or social reasons to a
different place that is socially different from where they usually hang out. According to most
commonly used definitions, a person must be in a place for more than 24 hours but no more than
a year in order to be considered a tourist. Travelers may be inspired by a variety of reasons,
including the need for physical and mental renewal as well as the pursuit of thrills, amusement,
or pleasure. As an alternative, travelers could be motivated by a desire for new relationships,
self-improvement, business, a desire to visit friends and family, or cultural curiosity.

Even though business travelers are typically categorized as tourists, it is important to note that
various definitions of the term exclude people who travel with the purpose of finding work while
they are there.

Numerous advantages come from tourism, including improved economies for host nations as a
result of tourists' spending on both local companies and their actual hotel stays.

Additionally, it offers a large number of jobs to those in the transportation and hospitality
sectors. Additionally, tourism may strengthen linkages between states or industries, open up
venues for amusement and relaxation, and raise the worth of a currency. Additionally, it can
create opportunity for cultural exchange, while for visitors, it can result in greater enjoyment,
wellbeing, and educational prospects.

As observed, tourism trends around the world are likely to remain robust and the growth of the
T&T industry worldwide will significantly impact tourism flows towards the subcontinent.

Region Base Forecasts Average Annual Market Share (%)

5
 Year (Million) Growth Rate (%)

(Million)

1995 2010 2020 1995-2020 1995 2020

World 565.4 1,006.4 1,561.1 4.1% 100.0% 100.0%

Europe 338.4 527.3 717.0 3.0% 59.8% 45.9%

East Asia/Pacific 81.4 195.2 397.2 6.5% 14.4% 25.4%

South Asia 4.2 10.6 18.8 6.2% 0.7% 1.2%

What Are the Sectors Within the Tourism Industry?

1). Transport

By providing transportation, the transportation industry aims to assist travelers in reaching their
destinations. This can entail giving them the resources to get to their planned vacation spot in the
first place, but it might also entail helping them get around once they get there. Services relating
to land, air, sea, and rail transportation are included in this sector.

2) Airline sector

The airline sector is essential to the modern travel industry because it gives customers access to
both domestic and international flights, enabling them to get to their destinations promptly by
commercial aircraft. Scheduled flights and chartered flights generally represent the two types of
airline services.

3) Car Rent

For many travelers, having access to a car is crucial to their vacation experience because it
allows them to freely explore and move around. This access is provided by car rental services,

6
which frequently run close to airports or even in collaboration with specific airlines or travel
agencies.

4) Transport via Water

The water transport section, as its name implies, discusses travelling over water. This includes
ocean liners and ferry services, where the main goal is often to move people from point A to
point B. Additionally, cruise ships are included, where travelling on a cruise ship is the primary
vacation experience.

5) Bus Services

Coach and bus services are a crucial component of the tourism industry because they provide
long-distance travel, help airport travelers get to their accommodations, transport groups of
visitors on day trips to nearby towns and cities, as well as to local attractions and well-known
tourist destinations.

Railway Since the 19th century and up to the present, rail travel has been important to the
tourism sector. In addition to providing a way for travelers to reach their destination, railroads
also offer options for navigating many of the major cities and towns that tourists visit.

6) Spacecraft

Using spaceships to transport visitors into space is a new aspect of the transportation industry
that will grow more significant in the years to come. In fact, Virgin Galactic recently launched
the VSS Unity spacecraft into orbit and is preparing to provide paid space tourism flights in the
near future.

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7)Accommodations

Because individuals who travel to other locations need a place to stay, rest, sleep, and unwind,
the lodging sector is essential to the travel and hospitality industries. In fact, according to several
definitions, a visitor is only considered a tourist if their trip is more than 24 hours and they stay
overnight. There are numerous elements to this division, including the hotel sector, camping,
hostels, and cruises.

Main sectors

Hotels

The most obvious and well-liked lodging option for travelers is a hotel, and the hotel and tourism
industries are inseparably linked. Simply enough, hotels offer paid lodging to visitors. However,
other than beds and other necessities, their services can differ quite a little. Recently, shared
housing has been a popular choice for travelers. Airbnb is one of the most well-known platforms
for finding shared housing, allowing people to post available rooms for short-term rental to
tourists. These might be exclusive, private rooms or communal gathering spaces. Hostels are
frequently less expensive lodging options, making them ideal for travelers on a tighter budget or
looking to cut expenses. It is a convivial setting where numerous visitors rent beds in a common
area, usually with shared lavatory and cooking amenities.

Food and Drink

The food and beverage industry play a unique role in the tourism industry by offering travelers
the essential refreshments they need at every stage of their trip, including while travelling, while
staying in their chosen accommodations, and while touring the destination they have travelled to.
But in addition to meeting travelers’ essential needs, the food and beverage industry also
provides them with chances to mingle, make new friends, and have fun. One of the primary ways
that travelers eat food and interact with one another while travelling is in restaurants or eateries.
Fast food establishments like McDonald's and KFC, family restaurants, and upscale eateries
serving fine cuisine are all included in this category. Typically, catering is known for offering

8
culinary services at more distant locations. The different food and beverage options offered at
hotels and other lodging options, as well as on aero planes, cruise ships, or railways, would fall
under this sub-section. Offerings at numerous tourist attractions or entertainment venues are also
included.

Entertainment

Some visitors go on vacation to new places for entertainment. Such travellers might be drawn to
entertainment options that aren't offered where they live or need more universal entertainment as
part of their journey, which would be available practically anyplace. Sometimes the biggest
draws for tourists to a specific tourist spot are entertainment attractions or venues. On the other
hand, a lot of different entertainment options are designed to profit off current tourists. Casinos
are venues for entertainment that specialise in gambling. While casinos also provide activities
that include some degree of talent, games of chance make up the majority of these activities. In
addition, casinos frequently have connections to hotels and may provide additional
entertainment, such musical or comedic shows.

Tourist information is available both online and offline in the contemporary travel and
hospitality industries. Informational websites emphasising nearby attractions, tourist
destinations, or amenities are included in online tourism resources. The tourist board's
publications and tourist information centres are examples of offline services. The tourism and
retail sectors are intertwined, and the majority of popular tourist locations offer shopping
options. The entertainment industry's shopping sub-section also covers items like duty-free
shopping and local market commerce. In some circumstances, shopping itself can draw tourists.
Tourist guides give visitors access to scheduled tours of nearby sites, educational facilities, and
other interesting locations. By doing this, they can offer assistance, context, and expert insight,
frequently improving the experience and making it more convenient and worthwhile.

9
Tourism in the United Arab Emirates

The United Arab Emirates' economy heavily depends on tourism, which has both domestic and
foreign components. The tourist business contributed more than 164.7 billion dirham to the
national GDP in 2018.

United Arab Emirates has the most prosperous tourism sector of any Gulf country and has long
held the title of GCC's top travel destination. Additionally, it is the Arab world's largest source of
tourists. In the United Arab Emirates, tourism supported more than 604,300 jobs as of 2018. It is
anticipated that the industry will continue to grow, contributing an additional 410,000 workers
and an increase in income of 12,4% of the nation's GDP in 2027. There has been ongoing work
to Emiratis the sector, which is thought to crucial for the development of the country's tourism.

The most well-known and visited tourist destinations in the nation are the world's tallest
building, the Burj Khalifa, in Dubai; the Palm Jumeirah and The World archipelago, both in
Dubai; the Sheikh Zayed Mosque and Yas Marina Circuit, both in Abu Dhabi; and the Al Hajar
Mountains, located in Fujairah. The country's unique desert lifestyle, particularly that of the
Bedouins, helps the country's tourism sector.

UAE tourism statistics

Tourist
Year
Arrivals

2023 4670000

2022 1140000

2021 7,120,000

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 2020
5,510,000

2019 21,000,000

2018 15,930,000

2017 20,700,000

2016 19,300,000

2015 17,000,000

2014 15,500,000

2013 14,000,000

A balanced expansion of the overall tourist business is made possible by the growth of the MICE
(meetings, incentives, conferences, and events) sector. It also encourages the prudent use of
cultural and natural recreational resources. The United Arab Emirates' (UAE) capacity to
produce national gross domestic product (GDP) is greatly influenced by the tourism sector. The
Dubai Annual Visitor Report 2019 states that at the end of 2019, tourism significantly increased
GDP value by 11.5 percent. The World Travel and Tourism Council's Cities Report also listed

11
Dubai's tourism sector as one of the "Top 10" strongest economic share generators (Dubai's
Department of Tourism and Commerce Market, 2020).

More than 2.3 million visitors to Dubai stated that they were there for business in 2019, an
increase of 2% from the previous year (Dubai Department of Tourism and Commerce Market,
2020). According to the Dubai Annual Visitor Report, Dubai hosted 301 meetings, conferences,
and incentives in 2019 that were planned by Dubai Business Events, putting in a bid for 595
events in 2020. A record 3.57 million people visited the Dubai World Trade Centre (DWTC) in
2019, which is a 4% increase in visitors from the year before. This development was mostly due
to 349 MICE and business events, 97 of which were substantial with more than 2000 people.

Businesses from all over the world have boosted their foreign attendance at DWTC events by
15% since 2019 (equal to 1.2 million visitors) in order to share expertise, network, and speed
their development (Dubai Department of Tourism and Commerce Market, 2020). Business
tourism events produced $3.57 billion, or 3.3% of the GDP, in 2018 (Dubai World Trade Centre,
2019). The UAE is expected to become one of the top players in the global MICE sector as
business tourism, which was a major contributor to the nation's economic growth, expands
quickly in the near future (Rogerson, 2017; Dubai Tourism, 2020). The quarantine that was put
in place thwarted their measures.

Statistics and facts about the UAE's tourism sector:

United Arab Emirates

Despite being a large oil producer, the United Arab Emirates has a clear plan to diversify its
economy and balance its reliance on other industries. The tourist sector has established itself as a
significant economic divergence amplifier. By 2028, it has been estimated that the UAE's GDP
will be roughly 280.6 billion United Arab Emirati dirham, thanks to the travel and tourism
sector.

From 2012 through 2028, the total economic impact of tourism and travel to the United Arab
Emirates will be measured in billions of UAE dirhams.

12
Overview of UAE tourism

At its height in 2019 before the COVID-19 epidemic, the United Arab Emirates had more than
25 million international visitors, solidifying its position as a top travel destination in the Middle
Eastern area. The tourism and hospitality industry has made a name for itself as a big employer
in the United Arab Emirates. By 2028, the travel and tourism sector will be responsible for
around 400 000 jobs.

The hotel sector is one of the primary development priority areas for the travel and tourist
business in the United Arab Emirates. In particular, the emirate of Dubai is renowned for its
opulent hotels, high-end structures, and resorts. More than 35% of the luxury hotel supply in the
Gulf Cooperation Council (GCC) region is located there.

13
Share of luxury hotel supply in Gulf Cooperation Council (GCC) in 2017, by country

The MICE industry has been harmed by government measures to control and combat the disease.
Travel was forbidden, people were instructed to stay in their homes, and social and professional
obligations were cancelled. These steps were taken by governments all around the world in an
effort to strike a balance between protecting national economies and preventing dangerously high
unemployment and poverty rates. They made an effort to respond to public health imperatives in
order to prevent the collapse of the health systems and a high death toll in 2020. After months of
significant interruptions, the tourism industry is beginning to recover in some areas, particularly
in the Northern Hemisphere, according to the United Nations World Tourism Organization
(UNWTO).

Travel restrictions persisted in most foreign locations at the same time, and corporate tourism
remained one of the sectors that was most adversely affected (World Tourism Organization,
2020).

14
Despite Dubai's tourism industry's promise that the city would reopen to international visitors on
July 7, 2020, travel anxiety lingered. Due to this, up to March 2020, Dubai's international arrival
figures were much lower than they had been (Dubai Tourism, 2020).

Politicians and business executives are debating whether the current market and economic
downturn actually points to a recession, how severe the COVID-19 recession will be, what will
be the growth and recovery scenarios, and whether the developing crisis will have any long-term
structural effects as the COVID-19 pandemic continues and the second wave is anticipated by
epidemiologists. The trajectory of the virus, the effectiveness of containment measures, and
consumer and business reactions won't be revealed by any projections or indicators, though. The
economic impacts of COVID-19 cannot currently be effectively represented or predicted by a
single number, especially for the MICE industry, which depends on international travel and
public events.

Despite the fact that the pandemic has just recently been contained, there have been huge losses
on both the global and market levels. However, it is now very difficult to assess them due to a
lack of statistical data and some enterprises, sectors, and countries, particularly emerging ones,
being afraid to report the severity of economic collapse (Stock, 2020).

The impacts of the coronavirus disease on the MICE business locally and globally, as well as
survival strategies for MICE enterprises, received little attention despite the existence of diverse
research on COVID-19 and its expected influence on economies and industries. The UAE's
MICE industry was chosen as a case study due to its preeminence in the global MICE market
before the pandemic-related calamity.

With the UAE business sector as an example, the study aims to examine how COVID-19 is
influencing MICE firms both locally and worldwide as well as to create a competitive survival
strategy for MICE businesses.

15
World Tourism Organization:

Additionally, it is anticipated that Asian tourists would make up a larger percentage of

international arrivals than tourists from Europe by 2020 (see Exhibit below). Thus, if key
patterns change, emerging nations have more opportunity (because tourism has the dual benefits
of generating foreign exchange and creating jobs). Additionally, it opens up opportunities for
developing specialty markets like beach, medical, and rural tourism to raise the perceived value
of travel locations.

Economic Impact Reports

Prior to the epidemic, 10.3% of all jobs (334 million) and 10.4% of the world's GDP (US$ 10
trillion) in 2019 were related to travel and tourism, including its direct, indirect, and induced
consequences. During the period 2014–2019, travel and tourism also contributed for 1 in 5 new
jobs generated globally. The amount spent by visitors from abroad in 2019 was US$ 1.9 trillion.

According to the WTTC's most recent annual report, the Travel & Tourism sector contributed
7.6% of the world's GDP in 2022, up 22% from 2021 and only 23% less than in 2019.22 million
new employments were created in 2022, a 7.9% increase over 2021 and only 11.4% below 2019.

Spending by domestic visitors climbed by 20.4% in 2022, just 14.1% less than in 2019.

Spending by foreign visitors increased by 81.9% in 2022, yet it lagged 40.4% behind 2019
figures.

Share of the total gross domestic product (GDP) generated by travel and tourism
worldwide from 2000 to 2021:

16
Tourism impact on businesses

Both positive and bad effects of tourism are felt by the economic, sociocultural, and
environmental aspects of tourist sites. Economic, socio-cultural, and environmental
repercussions of tourism are the three categories that are typically mentioned. The economic
benefits of tourism include increased tax receipts, personal income growth, higher living
standards, and more job opportunities. [3][4] Sociocultural influences include attitudes and
behaviors, attachments to material possessions, and interactions between persons from different
cultural backgrounds.[5] The degradation of habitat, vegetation, air quality, water bodies, the
water table, wildlife, and changes in natural phenomena are examples of direct environmental
impacts. Indirect effects include increased harvesting of natural resources for food and indirect

17
air and water pollution (including that from flights, transport, and the production of food and
souvenirs).

Statistics and data about the effects of the coronavirus on the global tourism sector

The coronavirus (COVID-19) pandemic not only had a major effect on public health, but it also
adversely damaged the tourist sector, which is one of the cornerstones of the world economy.
Domestic and international travel dramatically decreased in early 2020 as a result of the
introduction of travel restrictions by many nations to stop the virus' spread. The virus's financial
effects were apparent later that year when global travel and tourist expenditures more than cut in
half between 2019 and 2020.

Prior to the pandemic, leisure travel and tourist expenditures totaled close to five trillion dollars
worldwide; by 2020, that number had dropped to 2.33 trillion. Additionally, there was a large
loss of jobs in the worldwide travel and tourist industry in 2020, with an estimated 62 million
individuals losing their work in this industry. The sector had partially recovered its financial
losses by 2021 thanks to a small increase in the global gross domestic product (GDP) produced
by travel and tourism.

The COVID-19 pandemic has been blamed for more than 4.3 million confirmed infections and
more than 290.000 fatalities worldwide. It aroused concerns about an impending recession and
financial catastrophe. Social exclusion, self-isolation, and travel limitations have all decreased
workforce participation, which has led to the loss of many jobs.

Due to the unavailability of a vaccine and the severely limited treatment options, non-
pharmaceutical therapy ended up being the primary strategy to contain the pandemic.
Unprecedented travel restrictions and requests for individuals to stay home have caused the
international economy's biggest disruptions since international War II. Tourism virtually came to
an end in March 2020 as a result of the ubiquitous restrictions on community mobility and public
gatherings, as well as the foreign travel bans that affect more than 90% of the world's population.
Since the introduction of quarantines, millions of jobs in the global tourism sector have been lost
as a result of cancelled flights, events, and hotels.

18
Given that international arrivals only reached 1.5 billion for the first time in 2019, it is obvious
that the tourism sector's long-term development will depend on the next ten years of expansion
following the global financial crisis. However, this last phase of unrestrained corporate tourist
expansion has unexpectedly come to an end with the COVID-19. The COVID-19 pandemic,
which was accompanied by quarantines in several countries and border restrictions elsewhere,
had a significant impact on the MICE industry. The majority of domestic and international
airlines had to cancel their flights due to stringent quarantine regulations and a shortage of
passengers out of fear (2020).

Total travel and tourism spending worldwide from 2019 to 2021, by type (in trillion U.S.
dollars)

19
Employment loss in the travel and tourism sector due to the coronavirus (COVID-19)
pandemic worldwide in 2020 and 2021, by region:

20
The impact of COVID-19 on global tourism industries

Transportation, lodging, travel agencies, restaurants, and other businesses are all included in the
tourism industry. The pandemic had some effect on each of these industries. Due to travel
restrictions and consumer anxiety, airlines experienced a historic reduction in passenger traffic.

In contrast, hotel occupancy rates decreased in the first few months of 2020 in every region of
the world. The virus had its most noticeable effects on Europe's hotel occupancy rate in April of
that year, when occupancy rates dropped to only 11%. Even the monthly variation in short-term
rental reservations made through travel agencies like Booking and Airbnb reached record lows in
December 2020. The restaurant business was severely impacted by the decline in both tourists
and local customers. The number of sit-down dinners globally fell precipitously in March 2020;
the number has only recently stabilized.

Chapter 2

21
Problem Questions & Require Analysis:

These tasks were created with the intention of accomplishing the objectives:

Analyze the effects of the COVID-19 coronavirus pandemic on the MICE industry in the UAE
and the global tourism market (pre-post);

To determine the profitability of MICE businesses in the UAE, select economic efficiency
metrics. Then, offer a survival plan for MICE businesses in the context of outsourcing in a
globalized economy that is significantly impacted by COVID-19 (using the UAE as an example).

Business tours and excursions are comparable in terms of event tourism education. Although the
mechanics are frequently the same, the fundamental character of the event differs. Given that
Abu Dhabi and Dubai are currently two of the most prominent business hubs in the world, the
significance of business tourism and its contribution to the country's tourism industry is
enhanced. The numerous conferences, business congresses, and diplomatic visits are the primary
elements affecting business tourism.

Significance of the tourism sector in the UAE:

The UAE's tourism and hospitality sectors are crucial to the economic and general development
of the nation. Here are some crucial details emphasizing its significance:

1. Economic Contribution: The UAE's economy is significantly influenced by the tourism

and hospitality sectors. It produces considerable income, earnings in foreign currencies,
and employment prospects. The expansion of the business benefits many industries,
including transportation, lodging, food services, retail, and entertainment.
2. Diversification: The UAE has worked to refocus its economy away from dated industries
like oil and gas. This economic diversification plan heavily relies on the tourism and
hospitality industries. The nation has effectively positioned itself as a worldwide tourism
destination, luring travellers from all over the world, by investing in infrastructure,
attractions, and services.

22
3. Employment Creation: Both local residents and foreign workers profit from the
industry's numerous direct and indirect job opportunities. It provides employment
opportunities for people with a range of skills, including those in management, customer
service, the culinary arts, event organising, and more.
4. Development of infrastructure: The UAE has made significant investments in creating
world-class infrastructure to assist its tourist and hospitality industries. This involves
building opulent hotels, resorts, shopping centres, amusement parks, entertainment
venues and cutting-edge airports. These changes improve the overall tourist experience
while giving businesses the chance to prosper.
5. Cultural interchange and Global Image: By luring tourists from various backgrounds and
presenting the nation's rich heritage, traditions, and landmarks, the UAE's tourism
business fosters cultural interchange. The hospitality industry is essential to giving
visitors a warm welcome and making their stay memorable, which helps the nation
maintain a favorable reputation abroad.
6. Business and Investment Opportunities: The tourism and hospitality sector has
established an environment that is conducive to domestic and foreign companies making
investments and establishing a presence in the UAE. As a result, auxiliary industries like
travel agencies, tour operators, transportation services, dining establishments, event
management firms, and more have grown.
7. Sustainable Development: By emphasizing environmental protection, responsible
tourism, and green initiatives, the UAE has shown a dedication to sustainable tourist
practices. The industry's focus on sustainable development fits with current global trends
and strengthens the nation's standing as a destination for ethical travel.
8. Economic Diversification and Resilience: The COVID-19 pandemic made it clear how
crucial it is to have a diverse and resilient economy. Despite being affected by the virus,
the tourist and hospitality sector in the UAE has demonstrated adaptability and resilience.
The nation has taken steps to create a safe and secure environment for tourists, laying the
groundwork for the industry's revival and continued expansion.

23
Overall, the importance of the UAE's tourism and hospitality sector resides in its role in
economic diversification.

If tourism businesses want to succeed, they must efficiently utilise all reserves. Competition is a
dynamic process with survival as its ultimate objective. Creating long-term competitive
advantages that can aid MICE agencies in regaining market share and improving their financial
performance in the post-pandemic year of 2020 is the main goal of managing corporate
competitiveness in the MICE business.

The importance of infrastructure and support services for environmental sustainability is

highlighted by research that has already been done on the competitiveness of the tourism
industry. Controlling visitor behavior also increases market competition. Prior research relied on
a survey of significant tourism stakeholders and business experts. A mixed (quantitative-
qualitative) method was adopted by certain academics to evaluate an industry's competitiveness
in Iran. Others have produced their own competitiveness indices for the industrial sector. For
instance, in a global review of industry competitiveness, some authors highlighted alternative
information sources while others cited data from the World Economic Forum's Travel and
Tourism Competitiveness Index.

Structural equation modelling of the influence of the tourism industry recovery and growth on
environmental sustainability (2019) demonstrates the existence of environmental degradation.
The PROMETHEE and GAIA analyses used in the competitiveness study of Portuguese tourist
destinations revealed benefits and drawbacks of regional competitors. a robust infrastructure for
the tourism industry and the possibility for tourism destinations to grow thanks to the
implementation of government policies or Private initiatives are among the effective indicators
(Lopes et al., 2018).

The competitiveness of the MICE sector is taken into account (2015) based on arbitrary
assumptions about competitiveness and the significance of particular measures for sustainable
development. For instance, Porter developed a generalised model of micro-level competition.
The cornerstones of Poon's competitive tourism are quality, privatisation, and innovative
approaches. The WES model is a macroeconomic framework that takes tourism policies into

24
account. In Dwyer's model, the pricing element is recognised as being crucial. By incorporating a
broad range of competitiveness variables for the sector, the Crouch-Ritchie model systematises
the global forces that provide challenges to and offer opportunities for tourism (2014). The
tourism industries of Slovenia and Serbia needed to be compared using a modified IPA matrix in
order to reduce the gap between the importance and performance of the MICE industry (Dwyer
et al., 2016). The creation and acceptance of innovative products are connected to these acts and
developments.

Tourism impact on Sectors of UAE

The UAE's GDP Contribution from the Travel & Tourism Industry.The travel and tourism
industry contributed roughly AED 180.4 billion, or 11.6% of the UAE's total GDP, to the
country's GDP in 2019. The total amount spent by visitors from outside the UAE in 2019 was
AED 143.1 billion.

Emirates and Etihad Airways:

In an effort to boost tourism to the United Arab Emirates (UAE), Emirates and Etihad Airways
are expanding their interline cooperation, initially focusing on incoming traffic from "key source
markets" in Europe and China.Passengers will be able to buy a single ticket that allows an
inbound trip into either Dubai International or Abu Dhabi International, with an outgoing
departure from the other airport, in accordance with the memorandum of understanding (MOU).

The airlines claim that by using a "open jaw" strategy, travelers may effectively cover more
ground and explore different emirates, such as Abu Dhabi and Dubai, without having to go back
to their arrival airport for departure. Travelers to the UAE will also have the choice of "multi-city
flights," which will enable them to fly on Emirates or Etihad out of one city and return on either
carrier to a different one.

"We believe this new agreement provides a strong foundation for the development of further
opportunities between both airlines and is an example of our commitment to the UAE's vision for
continued economic diversification," Emirates President Sir Tim Clark adds.

25
The pact, which is scheduled to go into effect later this summer, was a "win-win proposition" for
passengers and will help continued expansion of the UAE's tourism industry, according to Etihad
CEO Antonoaldo Neves.

According to data from the Emirates Tourism Council, the tourism sector is expected to sustain
more than 1 million employment by 2027 and contribute 5.4% of the nation's overall GDP, or
AED116.1 billion ($32 billion).

This is the second partnership between Emirates and Etihad that has been publicised. A
cooperation between Emirates Group Security and Etihad Aviation Group was established in
2018 with the goal of enhancing aviation security through the exchange of data and intelligence
in operational settings both inside and outside the UAE. Additionally, in an effort to increase
tourism, Emirates signed an MOU with the Department of Culture and Tourism in Abu Dhabi
last year.

Tourism impact hotels:

Hotels are impacted by tourism since there is typically a correlation between the number of
visitors looking for overnight accommodations and the desirability of a location3. As a result, as
a region's visitor demand grows, so does the demand for hotels, prompting developers and hotel
chains to rush into popular areas.

Hoteling industry:

There were more than 1.14 thousand hotels and other lodging facilities in the United Arab
Emirates (UAE) as of 2021. In comparison to the 538 units in 2008, the number of hotels in the
UAE increased.

26
Travel and tourism in Malaysia:

The COVID-19 pandemic has had a considerable impact on the tourism industry in Malaysia, as
it has in other nations.While domestic tourism decreased as a result of the Movement Control
Orders (MCO), inbound tourism came to a complete halt as nations closed their borders and
limited travel to stop the spread of the virus. However, as COVID-19 infections stabilised and
vaccination rates rose in 2022, Malaysia relaxed its pandemic travel restrictions and opened its
borders. In view of the loosening of travel restrictions around the world, Malaysia has set a goal
of welcoming 4.5 million foreign visitors by the year 2022. However, this is still far short of the

27
30 million visitor goal established by the Visit Malaysia 2020 campaign, which was started prior
to the pandemic. It would take considerable time for the travel and tourism industry to return to
its pre-pandemic levels.

One of Malaysia's main businesses, tourism contributed 6.7 percent of the country's GDP in
2019. However, in 2020, this decreased to 2%. With about a quarter of the country's workforce
employed, tourism is one of Malaysia's main job areas. The COVID-19 epidemic, however,
caused a sharp fall in the rise of tourist visits year over year as Malaysia closed its borders to
foreign visitors and imposed entry restrictions on non-residents.

As tourism revenue virtually disappeared, firms that cater to tourists witnessed a major drop in
profits. During the two years of the pandemic, the Malaysian government promoted internal
travel to make up for the loss of foreign tourism. However, domestic tourist spending was unable
to offset the losses in this industry, particularly as a result of the country's travel bans and
lockdowns that hindered domestic travel.

From 2012 to 2021, the direct contribution of tourism to Malaysia's GDP is as follows.

28
Malaysian tourist’s numbers from 2013 to 2022

About ten million tourists are expected to visit Malaysia in 2022. In April 2022, the country's
border was reopened after two years of travel restrictions that had a significant negative
influence on the number of tourists visiting the nation.

Tourism industry OF MALAYSIA in recovery:

However, the COVID-19 epidemic has had a negative impact on the world travel sector.
Countries all across the world implemented restrictions on both inbound and outgoing travel as
part of their efforts to stop the virus' spread. As early as the end of January, Malaysia introduced

29
travel restrictions for inbound tourists from China, the country's second-largest inbound tourism
sector. After the borders were reopened, the nation can anticipate a spike in Chinese visitors to
aid in the tourism sector's return to its pre-pandemic status. The government of Malaysia has
unveiled a ten-year strategy to support the growth of its tourism industry.

One of the key recovery measures in the National Tourism Policy 2020–2030 is the promotion
and development of sustainable tourism. Along with island and coastal tourism, it has also
highlighted ecotourism, adventure, and sports tourism as desirable vacation experiences.

Despite the government's efforts, restoring the tourism industry to its pre-pandemic levels rests
largely on things that happen in other countries than Malaysia. China is the country that brings in
the most foreign visitors to Malaysia, followed by the ASEAN nations. China is still pursuing a
zero-COVID-19 plan as of the third quarter of 2022, with stringent limits for international travel.
China was the third-largest contributor to Malaysia's tourism payments, hence the absence of
Chinese tourists would have a substantial influence on those receipts.

The tourism sector in Thailand:

International tourism, a once-thriving industry that has been hampered by pandemic restrictions,
is a key component of Thailand's economy. However, once Thailand reopened to vaccinated
foreign travelers from 63 countries on November 1, 2021, there have been ongoing government
initiatives to increase domestic tourism as well as measures to assist returning international
demand.1 Thailand's experiences can serve as a model for other tourism-dependent nations
experiencing comparable challenges as they get ready for the revival of foreign travelers, even as
the world deals with new strains of the virus.

For the Thai Kingdom, tourism is a source of revenue. Estimates of the direct contribution of
tourism to Thailand's 12 trillion baht GDP range from one trillion (2013) to 2.53 trillion (2016),
or 9% to 17.7% of GDP.[1][2] The sum for 2014 is projected to be the equivalent of 19.3% (2.3
trillion baht) of Thailand's GDP when indirect travel and tourism receipts are included.[3]: 1 Due
to the fact that GDP is determined by value added rather than revenue, the actual contribution of

30
tourism to GDP is smaller than these numbers. The value contributed of the tourism sector in
Thailand is unknown (value added is income minus input purchases).

The tourist industry is expected to contribute 30% of GDP by 2030, up from 20% in 2019,
according to the secretary-general of the Office of the National Economic and Social
Development Council in 2019.[4]

In 2017, the global tourism industry generated 313 million jobs, or 9.9% of all employment, and
contributed 10.4% to the global GDP.[5]: 1 The majority of governments see tourism as a quick
source of revenue and a means of accelerating economic growth. The volume of tourists is a key
indicator of tourism success.[6]

According to United Nations World Tourism Organization rankings of countries for travel,
Thailand was the ninth most visited nation worldwide before the pandemic. Thailand had 39.8
million foreign visitors in 2019, more than the UK and Germany combined.[7] and earned 60.5
billion US dollars, the fourth-highest amount from international tourists.

Covid-19's effects on the UAE's tourism industry

Micro, small, and medium-sized enterprises account for 80% of all companies in the UAE; the
majority of these companies lack organisation and have high working capital requirements.
Many of them stopped operating as a result of the crisis, which had a ripple impact on other
industries including fishing, agriculture, and the creative sectors, which make up the supply
chain for the tourism industry. It was planned that UAE tourism would reach pre-Covid-19 levels
in 2021.

In fact, the UAE came in second overall to China (58%), with an average occupancy rate of
54.7%. This shows that despite the pandemic, the UAE had outperformed the majority of other
countries in restoring its tourism industry. This can be largely attributed to the UAE's expertise
in technology and financial stimulus. The UAE is ranked second for ICT adoption and fourth in
the world for its legal system governing digital transactions. In terms of developing networks and
infrastructure for smart mobility, the UAE is also among the top 10 countries in the globe. It is

31
believed that these technology advancements will gradually boost the UAE economy, notably the
tourism sector.

The current COVID-19 situation in the Arabian Gulf Countries Council (GCC) from the
beginning of the pandemic on January 22, 2020 until February 28, 2022 is shown in Table 1
below. In the UAE, there were the most confirmed instances, while in Qatar, there were the
fewest.

GCC Countries Confirmed Cases Deaths Population (Million)

UNITED ARAB EMIRATES 879,973 2301 9.890

BAHRAIN 514,883 1454 1.701
KUWAIT 619,894 2538 4.270
UAE 382,244 4244 5.106
QATAR 356,982 670 2.881
SAUDI ARABIA 745,027 8998 34.813

COVID-19 impact and survival strategy in business tourism market: the example of the
UAE MICE industry:

Despite having good numbers for foreign visitor arrivals, the United Arab Emirates, Belgium,
Ireland, Jamaica, Guyana, the Cayman Islands, and Vanuatu only have data from February 2020,
when COVID-19-related travel restrictions were less stringent. The same is true for a number of
other countries that had only moderate drops in population, such as Bhutan, Martinique, and
Aruba.

International visitor arrivals globally showed consistent rise from 2000 to 2019 with the
exception of two crisis years, 2003 (the SARS outbreak, which affected 3 million people), and

32
2009 (the global economic crisis, which affected 37 million people). According to the UNWTO's
worst-case scenario, the drop in 2020 might reach 1.140 billion.

The world's international tourism receipts also increased continuously from 2000 to 2019 with
the exception of 2009, which saw a fall of USD 88 billion. The UNWTO's worst-case scenario
projects that by 2020, the reduction will amount to USD 1.170 trillion.

Global Reduction in Flight Bookings, 2020

Commenced
Airline Callsign Hub airport(s) Notes
operations
Sharjah International
Largest low-cost
Airport
Air Arabia ARABIA 2003 airline in the
Ras Al Khaimah
Middle East
International Airport
First low-cost
Air Arabia Abu Dhabi International
ARABIA 2020 carrier from the
Abu Dhabi Airport
region
Dubai International Largest airline in
Emirates EMIRATES 1985
Airport the Middle East
Etihad Abu Dhabi International Second largest
ETIHAD 2003
Airways Airport airline in UAE
Dubai International
Low-cost carrier
Fly Dubai SKY DUBAI 2008 Airport, Al Maktoum
of Dubai
International Airport
Wizz Air Abu Dhabi International Low-cost carrier
WIZZ SKY 2019
Abu Dhabi Airport of Abu Dhabi

33
The UAE experienced its largest drop in planned departure flight numbers on June 1, 2020, when
there were 82% fewer flights than on the same day in the previous year 2019. Less flights are
scheduled for United Arab Emirates airlines, which means less operational demands and a
smaller workforce. Many employees in the tourism industry have lost their employment. For
instance, 60,000 people were employed by Emirates prior to the outbreak (Josephs, 2020). The
protocols were motivated by the virus's spread, and the airlines took 10% of the team out of
service. Additionally, Sir Tim Clark, president of Emirates, forecasts that this circumstance may
lead to the firing of up to 15% more workers.

Only this specific airline will have 15,000 unemployed aircraft crew employees, according to the
report (, 2020). The lodging sector of the tourism industry includes places where visitors can
stay, like hotels and apartments (2018).

The Corona virus-related shutdown, which had a significant impact on the aviation industry,
resulted in a $5.5 billion (20.185 billion dirham) loss for Emirates Airlines, the largest airline in
the Middle East, for the first time in more than three decades. According to IATA estimates for
2022, passenger traffic dropped by 88.3% and revenue dropped by 66.6% to $8.4 billion (30.828
billion dirhams).

How will the tourism industry change as a result of COVID-19?

The tourism sector had to adjust to the pandemic's new reality in order to survive. This required
accepting new developments and technologies for many of its segments. Digital health passports
were created in 2021 to make travel easier while lowering the risk of viral transmission.
Nowadays, the majority of individuals are eager and ready to resume travelling. Over 50% of
individuals globally have domestic and international travel plans for the upcoming year as of
June 2022.

Concerns about COVID-19 were not cited as the primary cause for any of the countries polled in
a subsequent study that looked at the key reasons why nations avoided long-distance travel

34
between May and August 2022. Virtual tourism may soon be a practical choice for individuals
who are still disinterested in actual travel. The global market for virtual tourism was pegged at
five billion dollars in 2021, and it was predicted that by 2027, it would approach 24 billion
dollars.

Chapter 3

Design & Implementation

Tourism post COVID-19 outbreak

Dubai had the biggest share of all Middle Eastern and North African cities' contributions to the
country's tourism GDP prior to the pandemic. Following the COVID-19 outbreak, inbound
tourism spending in the UAE decreased by roughly 50% as a percentage of outward tourism
spending. The COVID-19 pandemic's effects are still being felt worldwide including in the
United Arab Emirates' tourism sector. You can read more about the impact of travel restrictions
and the global lockdown on the tourism sector here.

In the Middle East and Africa in 2016, city calculated the ratio of city tourist gross
domestic product to national tourism gross domestic product.

35
As has been noted, global tourism trends are likely to continue to be strong, and the expansion of
the T&T business will have a big impact on travel to the subcontinent.

COVID-19's Effect on the Real Estate Market

One of the nations affected by the epidemic in its real estate sector was the United Arab
Emirates. The UAE's real estate market was less profitable as a result of the government's
economic policies, curfews, and restrictions on movement following COVID-19. The COVID-19
has both a direct and indirect impact on the real estate market. Comparative to other countries,
the real estate market in the UAE has distinctive characteristics. Sherine L. claims that one of the
distinctive aspects of the market is that expats use it more as a temporary residence than locals
do. Sherine explains that the majority of the country's real estate clients are expats, who
anticipate eventually returning to their native nations. On the other hand, locals purchase homes
as investments for future generations rather than for the purpose of exchanging and transferring
goods. As a result, individual emirates offer leasehold or freehold ownership of the majority of
homes in the United Arab Emirates.

The country's real estate exhibited COVID-19's effects in a variety of ways. The market first
seen a general decrease in residential property prices during the epidemic. Sherine referenced a
Deloitte analysis that shows that during the third quarter of 2018 and 2019, the cost of residential

36
real estate in Dubai decreased by almost 7%. During the COVID-19 epidemic, rents and the
typical flat price per square foot also saw large drops. Sherine claims that the cost of renting an
apartment in Dubai decreased by about 9% while the cost of purchasing an apartment decreased
by about 10% per square foot. As a result, during the COVID-19 epidemic, buying and renting
homes in the UAE was less expensive (Sherine, 2020).

The COVID-19's Effect on Education in the UAE

Due to the change to online and remote learning brought about by the pandemic outbreak,
student performance suffered greatly. However, both the positive and negative effects of
COVID-19 on education in the UAE will be covered in this essay. This chapter was created
based on interviews with neighbours, teachers, and coworkers as well as personal experience as a
mother. The UAE government took numerous measures to stop the pandemic's spread and
imposed new regulations, such as halting malls and entertainment venues, suspending work at
offices in favour of working from home, and suspending prayers at places of worship.
Additionally, the distribution of print periodicals was stopped and switched to digital versions.

37
Effect of COVID-19 on United Arab Emirates Daily Life

Due to the pandemic, consumer spending has changed significantly, with various effects
perceived in each of the seven emirates based on gender, age, and income levels. Overall, it was
found that spending on groceries increased while spending on restaurants, motels, and coffee
shops decreased. Online shopping spending increased. One of the key factors contributing to the
success of electronic commerce was the COVID-19 virus. The majority of market vendors have
been prompted by the quarantine periods to advertise their deals and display pictures of their
products on social media platforms in an effort to attract clients. People had no other options for
shopping, especially as many large retailers, eateries, and other service providers were either
closed or unable to perform their services as a result of the regulations. In order to prevent the
period of inactivity, it was the ideal solution (Almurshidi, Bridi, & Al Hosani, 2021).

The film industry suffered significant harm as a result of the closure of theatres. However,
throughout the period of home quarantine, demand for Netflix and OSN platforms surged.
Cinemas opened with a minimal capacity when the Corona limitations were loosened, and this
capacity is increasing or reducing depending on the trends and breakouts of cases.

Chapter 4
Marketing plan for travel-related goods in the post-pandemic period:

The UAE is a technologically advanced country that uses technology on par with the west. More
individuals are using the internet and their mobile phones to access services as a result of the
pandemic's restrictions on travel. As was already said, consumers are increasingly using digital
platforms to get information. However, because digital platforms are so widely used nowadays,
people' attention spans are now shorter due to this manner of information transmission. In short,
they don't have the bandwidth to efficiently synthesise such a large amount of data. Additionally,
the importance of health factors in consumer decision-making has grown significantly and
evolved into a competitive issue for businesses (Law, 2006). Here The tourism sector should
consider these and other factors when developing its products for a world after the epidemic.

38
The following marketing strategy was created as a result of the inquiry and offers a general
framework that UAE tourism businesses may utilise and modify for the situation and
environment. Find out the user's goals and objectives for travel-related items. For instance, travel
plans, hobbies, free time, etc. Give the client information based on their goals and objectives.
Email, text messages, or mobile phone calls can all be used to communicate information. Reduce
information asymmetry as a priority.

 Recognise the importance of ongoing communication between the supplier and the
customer in order to collaboratively develop a travel product that is advantageous to both
parties.
 Businesses in the tourism sector need to figure out ways to collaborate with their
customers in order to assist with travel planning. A vacation should be planned with
consideration for factors including age, medical history, insurance, kids, other travellers,
time constraints, etc.
 Tourism companies must keep in constant communication with their customers during
the planning stages of a trip, and all interactions must be performed in a way that is
comfortable for the customer.
 The accessibility of digital technology reduces the barriers to two-way trip
communication. When necessary, it's crucial to instruct clients on how to use technology-
based services.
 Following up with customers is necessary for tourism businesses to gather feedback on
visitors' experiences. Customers should automatically receive all invoices and
accompanying papers on time. They shouldn't need to follow up.
 A proactive behavioural intervention that would encourage clients to consider the
company before their next trip occasion would be a quarterly email update.

UAE Different Economic indicators effected by covid19:

Numerous economic metrics in the UAE were significantly impacted by the COVID-19
outbreak. Here are some important metrics that were impacted:

39
1. Gross Domestic Product (GDP): The epidemic reduced the UAE's GDP because it
hampered economic activity. Both the oil and non-oil industries experienced declines as a
result of the lockdown measures, travel restrictions, and decreased consumer spending,
which resulted in a general slowdown in GDP growth.
2. Unemployment Rate: The pandemic caused job losses and less employment prospects in
a number of businesses, especially those that significantly rely on travel, hospitality,
retail, and aviation. As firms struggled financially and were forced to lay off employees
or implement cost-cutting measures, the unemployment rate rose.ffected:
3. commerce and Exports: Delays in international supply chains, travel restrictions, and
decreased demand had an impact on commerce and exports internationally. Due to the
epidemic, the UAE, a significant commercial hub, saw a reduction in both imports and
exports, which had an impact on a number of industries including manufacturing,
logistics, and transportation.
4. Tourism and hospitality: Due to travel restrictions, lockdown procedures, and decreased
consumer trust, the pandemic had a significant impact on the tourism and hospitality
sectors in the UAE. As a result of the sharp reduction in international arrivals, hotel
occupancy rates, revenue per available room, and overall tourism spending all fell.
5. Real estate: During the pandemic, the real estate industry, notably the residential and
commercial parts, slowed down. Property demand decreased as people and businesses
experienced financial insecurity. The sector was also affected by the stoppage of
construction work and the postponement of project completions.
6. 2Government Finances: The pandemic had an impact on the UAE government's finances,
particularly because of falling oil prices and decreased economic activity. Fiscal
shortfalls were caused by the government's budget being influenced by the drop in oil
revenue. The administration implemented stimulus packages and unveiled economic
support measures to lessen the impact on the economy.
7. 1Consumer Spending and Retail: During the epidemic, people prioritised necessities and
cut back on discretionary spending, changing consumer spending patterns. Reduced foot
traffic, temporary store closures, and a shift to internet purchasing presented difficulties
for retailers. Sales and profitability were impacted in the retail industry as a result of this.

40
 8. Financial Markets: In reaction to the worldwide economic unpredictability brought on by
the pandemic, the financial markets in the UAE suffered volatility and oscillations. The
uncertainty surrounding the pandemic's duration and effects led to stock markets
declining, and investor mood was impacted.

It is significant to note that the UAE government put in place a number of strategies to lessen the
effects of COVID-19, including stimulus packages, funding for impacted industries, vaccination
drives, and the gradual resumption of business operations. These actions have contributed to the
UAE's economy's resilience and revival.

ECONOMIC Pre -Covid-19 Post -Covid-19

Indicators

Economic Growth 3.8% -3.8%

Unemployment 2.6% 5.2%

Rate

Government AED 382 billion AED 488 billion

spending

Foreign direct AED 35 billion AED 25 billion

investment

Tourism 16.2 million visitors 7.3 million visitors

41
 Education 99% students attend 95% students attend
school school

Environment Air Pollution Air Pollution

increased 10% decreased 10%

Chapter 5

Future enhancement/Action Plan

Governmental efforts in the UAE to support the travel sector:

In response to the economic disaster brought on by the COVID-19 health epidemic, a number of
measures have been started. These initiatives have been reinforced by unique actions taken by
the UAE's tourism and hospitality industry. One of the most diverse and quickly growing
economic sectors in the globe in recent decades is tourism. Several of the country's long-term
goals, which are stated in a variety of sustainable goals, recognise the significance of this
industry as a source of jobs and a booster of regional economic growth, culture, and goods. It is
an essential part of the UAE's national economy, as was already mentioned, due to its
outstanding support for the GDP.

Since the outbreak caused the travel sector to collapse, it had a significant impact on the nation's
economy. Figure 1 shows that the UAE's GDP was around 421.14 billion dollars in 2019. It
decreased by more than 100 in 2020, totaling $353.9 billion (O'Neill, 2021). To make up for the
enormous loss UAE has experienced, the management carefully considered how to boost the

42
aforementioned sector. According to reports, the UAE government took a number of actions to
boost the travel and tourist industry in the nation. By emphasizing the range of attractions the
country has to offer, the Nation Brand hopes to attract tourists. Through the presentation of their
inspirational story, our initiative aims to promote the UAE as a single location offering a wide
variety of ideal experiences both locally and globally. This strategy, which was approved by His
Highness Sheikh Mohammed bin Rashid Al Actium, places a strong emphasis on unity.
Destination operators will work with the appropriate authorities, partners, and tenants to
maximize commercial potential, establish world-class travel destinations, and create sumptuous
hospitality projects. It has scheduled a variety of events and activities for each season in an effort
to draw tourists from the Gulf Cooperation Council, the UAE, and other countries (Sadaqat,
2020).

In the United Arab Emirates, for instance, each tourism location has an own story that draws
tourists back. From the Burj Khalifa in Dubai, one can see the dazzling features of a top-notch
tourist destination and recognise they are in front of a unique tourist gem that shouldn't be
overlooked. hence bolstering the United Arab Emirates' dominant position in the travel and
tourist sector. In addition, the UAE Cabinet authorised the establishment of the Emirates Tourist
Council in order to improve the nation's tourist offering by developing a tourism strategy that is
in line with the UAE Centenary and the nation's priorities and by bringing together all relevant
local authority departments (Albawaba, 2021). This committee will be responsible for:

Creating a comprehensive national tourism information database,

(i) suggesting and revising tourism-related policies and laws, as well as national tourism
growth plans,
(ii) supporting the expansion of the tourism industry,
(iii) attracting investment in the industry,
(iv) suggesting financial incentives to spur growth, and
(v) assisting small and medium-sized businesses (SME) involved in it.

43
Response and recovery plans for the tourism sector:

The outbreak had a significant impact on people's lives and the UAE's economy, especially in the
travel and tourism sector. As was already said, UAE leaders and authorities have created their
own recommendations to deal with the problems brought on by the global pandemic and have
put into place a variety of policies and initiatives intended to promptly restart their economic
operation while adhering to sanitary security measures. These won't be sufficient and successful
without the employees' participation and collaboration.

The tourism sector developed response plans to work in tandem with government initiatives to
help their current situation. Along with the previously noted downturn, recovery plans will be
unveiled for UAE hotels and airlines. Flights operated by UAE-based airlines like Emirates have
been cancelled in an effort to combat the disease. At the height of the pandemic, the majority of
people were unsure of what to do, but since then, the public has adjusted and is more aware of
the necessary behaviour. As a result, the airlines reopened and resumed accepting flight
reservations. In contrast to the past, the carrier must put its customers, staff, and communities
first when it comes to health and safety.

The airline follows established aircraft cleaning procedures, disinfects restrooms every 45
minutes, mandates personal protective equipment for cabin crew and airport staff, places security
barriers at check-in and immigration desks, and offers free hygiene kits, among other enhanced
bio safety measures. Emirates Public Relations in 2020. While in the airport, all guests and
personnel must put on gloves and masks. Similarly, scan them thermally to determine their
temperature. Food and drinks are brought in bent-style boxes to reduce contact between the crew
and the passengers.

The bundles will include sandwiches, drinks, snacks, and desserts. The 2020 study by Saed,
Upanishads, and Sahel looks at airline marketing initiatives and how they impact Dubai's
reputation as a brand. The results show that the national carrier's promotional efforts and onboard
facilities have a significant impact on Dubai's branding image. The study provides better co-
branding guidance and reveals an intriguing connection between a national carrier's marketing
initiatives and destination branding. Emirates is also the first airline in the industry to provide its

44
clients with complimentary COVID-19 coverage. It promises that if a traveller contracts the virus
while flying with Emirates, the airline will pay up to EUR 150,000 in medical fees and EUR 100
each day for a total of EUR 400 in quarantine costs.

Emirates, an airline with its headquarters in Dubai, is the safest airline in the world as a result of
its efforts to combat the disease. The Safe Travel Barometer was developed as the most complete
response to COVID-19 health recommendations and travel experience in order to influence
people's decisions and actual travel experiences in this new normal.

The safe travel score was developed as part of a Covid-19 rating initiative in the wake of the
outbreak. Even in the hotel industry, its rating system considers safety and hygienic criteria at
every stop a traveller makes. For instance, the UAE has authorised tourist entry visas for holders
of Israeli passports in order to facilitate inbound travel prior to the reciprocal visa waiver
agreement between the two countries going into effect. The UAE's signing of the first agreement
of its kind by a Gulf State—a contract to formally establish relations with Israel—led to this
development. As the UAE approaches its peak season, this arrangement will enhance the number
of visitors, helping the economy recover from the pandemic's consequences (Sojern, 2020).

Penman (2020) claims that hotels in the UAE made a contribution by restarting operations while
limiting capacity, amenities, and staff-to-customer engagement. The Farmington Ajman, for
instance, began operation at 30% of its capacity. They open the pool but impose social seclusion,
make sure the sunbeds are two metres apart, only allow ala carte menus as dining alternatives,
and only open the restaurants for a few hours. In addition to the established safety and health
rules, technology, primarily an app and chat service, focuses on the management of the Four
Seasons Hotels in Abu Dhabi and Dubai. It will lessen physical interactions while yet staying in
touch with their customers.

The main changes made by Hilton were to its cleaning and sanitation practises. In keeping with
that, they created a Hilton Clean Stay in partnership with Lysol and Detox Cleaning Products. It
comprises sealing guest rooms after a thorough cleaning to make sure no one has reached the
area. Among the new initiatives are:

45
  Removing unnecessary amenities unless specifically requested,
 Implementing digital check-in and contactless arrival, placing disinfecting stations with
wipes and disinfectant throughout the property,
 Cleaning frequently touched areas like the elevator and restrooms hourly,
 Encouraging the use of face masks, and allowing spaces between tables and chairs are all
ways to improve

Important socioeconomic factors for the recovery of the UAE tourism industry:

According to some (World Bank, 2020; Bolt et al., 2018), the Covid-19 pandemic triggered a
socioeconomic downturn that had a greater global impact than the impacts of the Second World
War. Each country has its unique recovery and revival strategies depending on the resources at
its disposal. Up until a few years ago, the UAE's economy was entirely dependent on the oil
trade. Since then, it has started to diversify into non-oil sectors. By building the wonderful cities
of Abu Dhabi and Dubai, it has encouraged tourism.

As the globe began to rebuild in 2021, it was the right time for the UAE to grow its tourism
sector. Since the effectiveness of the sector depends on a paradigm shift in how tourism firms
function, the relative performance of the sector will depend on redefining the socioeconomic
measures that are pertinent to the post-pandemic environment (2020). Table 1 below lists the
socioeconomic metrics deemed essential to the recovery of the tourism sector in the United Arab
Emirates: The Jumeirah Al Naseem in Dubai is the first hotel in the world to receive the Bureau
Veritas Safeguard label. This certification is awarded for maintaining strict cleanliness standards,
which reduces the Covid-19-related risks that are still there (Matthew, 2020).

A queuing model was suggested to maximize MICE enterprises:

Performance as a survival and competition tactic in the post-pandemic market. Hoteliers may use
the expanded Kotler marketing mix model as their preferred framework because it gives them an
advantage over other MICE industry competitors. With the aid of detailed investigations of
demand and profitability, this methodology makes it possible to assess MICE services from
diverse market segments. The marketing mix model's five Ps are:

46
  A hotel where businessmen can rest and conduct business is the product;
 Pricing policies, discounts, and price-quality relationships (which vary depending on
hotels and airlines, as well as insurance, travel, and event planning);
 Place: online platforms and distribution methods;
 Meetings, incentives, conventions, expos (product launches), state summits, public
relations, and advertising are all examples of promotion;
 People: devoted clients;

Recommendation/proposed course of action for the UAE's tourist and hospitality sector:

The COVID-19 has an effect on the tourism and hospitality sectors in the UAE (Al Nasseri,
2020; Times News Service, 2020a). To entice travellers from both domestic and international
markets, the UAE government has been taking initiatives to open up the tourism and hospitality
industries. This paper makes some recommendations for helping the tourist and hospitality
industries in the UAE. The recommendations include lowering visa requirements and
regulations, expanding flights to European countries, providing bailout funds for the tourism and
aviation industries, promoting travel at the national and international levels by offering lucrative
incentives to travellers, encouraging strict adherence to health and safety regulations, promoting
business and cultural events, offering special discounts for low- to mid-budget travellers, and
establishing direct airline connections.

To revive the tourist and hospitality sectors, the UAE government can also adopt the practises
followed by companies founded in other countries. In order to restructure their economies for the
post-COVID 19 future, numerous countries have enhanced their technological infrastructure. The
next digital era for the travel and hospitality industries must be built on artificial intelligence,
robots, 3D simulations, virtual reality, block chains, cloud computing, the Internet of Things, big
data, and augmented reality.

47
Block chain technology, according to a PwC estimate, can increase aircraft sector income by
US$40 billion and lower global MRO expenses by US$3.5 billion in 2019.By delivering
technologically advanced products, businesses are aiming to increase tourist interest and trigger a
consumer rebound. Hotels are putting robots in charge of room services, housekeeping
deliveries, food and beverage arrangements, in-room dining, delivering housekeeping items,
dispensing face masks, and sanitising in order to protect visitors and workers. By facilitating
smooth hotel booking and check-out processes, advanced self-service and biometric technology
will reduce COVID-19 threats.

The digitalized guest experiences that hotels in Rome are currently providing include a virtual
tour of the hotel property, mobile check-in and check-out, contactless payments, voice control, a
digital menu, and facial recognition to access rooms and recreational areas.

The airports in Beijing and Miami are implementing SITA's Smart Path self-service biometric
technology, which has improved passenger processing effectiveness while subtly maintaining
social distance. From the time they leave home until they arrive at the airport, travelers can use
their face as a biometric thanks to SITA.

With just a click or voice command, AI-powered virtual agents and catboats provide travelers
with the most recent information. Similar to this, Canada, New York, and the United States
deploy artificial intelligence temperature checks at airports and hotels to reduce visitor
congestion and the risk of cross-infection. As a result, the tourists are now happier and more
certain. Nations employ digital marketing to accelerate commerce. For instance, China employs
social media advertising channels and live streaming to maintain real-time disconnectedness
while attracting customers. Businesses are collaborating with celebrities to act as tour guides and
offer 360° views of tourist attractions, hotels, adventurous activities, and camping grounds in an
effort to encourage people to travel. Georgia, Barbados, Estonia, and Dubai all have "Remote
worker visa/Nomad visa" programmers to lure regular business travelers. It provides a mix of
work and play possibilities in the "workstation" and "stay cation" phases.

The aforementioned advancements benefit the tourism and hospitality industries and are
expected to do so. By exerting the necessary effort, the UAE will rank among the top tourist

48
destinations, which will help the tourism industry expand and positively impact the overall
economy.

Contribution of the study:

The current study improves our knowledge of the travel and hospitality industries. The results of
this study contribute to the current understanding of COVID 19's economic and social effects on
the tourism and hospitality sectors. The comprehensive analysis of this study adds to the body of
past research by highlighting crucial elements that ought to be taken into account when analysing
the economic and social impact on the tourist and hospitality industry.

The study supported earlier studies' findings that also focused on the economic impact
dimensions, such as financial loss, a drop in market demand, joblessness, impact on suppliers,
the supply chain, distribution channels, a shift in consumer preferences, and the closure of
businesses in the tourism and hospitality sectors. However, the current study also identified
additional factors that would have an economic and social impact, such as governmental policy,
transportation routes, anticipated travel patterns, stakeholder interactions, merger strategies, and
counselling services. Decision-makers can use the study's recommendations to focus on creating
a future road map for sustainable tourism and hospitality in the UAE.

Limitations and the potential use of the study:

This study has highlighted the COVID 19's economic and social effects on the travel and hotel
industries in the UAE. Future studies may be able to address some of the drawbacks of this one.

First off, the findings of this study cannot be generalized to other countries because they are
peculiar to the United Arab Emirates.

Second, only quantitative methods have been used by the researchers to achieve the study's
objective. Future researchers can use the triangulation approach to address this research
difficulty and produce more reliable and trustworthy result.

49
Third, it was challenging to pinpoint the crucial elements for analyzing the economic and social
impact due to the paucity of research on the subject in the context of UAE. It is possible to do
additional research by integrating additional variables that could yield different results and
conclusions.

Last but not least, comparison research among developing nations might be done to assess the
economic and social effects of COVID 19 on the tourism and hospitality sector.

The study was conducted in a short period of time with a small number of hotels and that too
during the on-going crisis. This may have left a few gaps in capturing the larger impact of the
unprecedented event; however, it is a very timely prequel to comprehend the long-term sentiment
at the level of accommodation enterprises and the short-term operational constraints for the
managers. A larger and temporally longitudinal study for a better prognosis and solution, to
mitigate the involved risks, in future is now imperative.

CHAPTER 6

Conclusion

Taking an overview of the enormity of the unprecedented global crisis induced by the Novel
Corona Virus Covid-19, this study focused on the hospitality industry of Sharjah, the third
largest Emirate of UAE. Since the pandemic is unique, has an extraordinary global impact and
still unfolding, authors decided to generate a dialectic of learning with credibility by using the
critical realism meta-theory as ontological and epistemological assumptions, and an integrated
mixed-method research design. The study was carried out in two quick phases. The first phase of
the study was a questionnaire-based survey, focused on collecting quantitative data for the
analysis to know the likely impact of the COVID-19-induced crisis on hotels in Sharjah, and also
to assess the sentiments of managers of hotels on market and their performance. The second
phase of the study was based on interviews to collect qualitative data and analyses through
phenomenology, mainly to explore issues that emerged in the survey and plausible recovery
strategies for the tourism industry in Sharjah.

50
The findings suggest that the impact of the crisis is most severe on the occupancy of hotels
across categories and its direct correlation on reduced revenue presented a worrying sentiment.
On the question of recovery timeline, the lower category hotels seem more optimistic with a four
to six months range of coming fully back in business, while the 5-star hotels feel it may take six
to twelve months; however, all are convinced that the industry will take more time to bounce
back to its earlier glory. The findings are in line with that of Fotiadis et al. (Citation2021) who
forecast the recovery of international tourism after the summer of 2021. The most intriguing
observation from survey analysis on the impact and recovery sentiments among different
categories of hotels was that it follows a U-shaped curve, suggesting that extreme end categories
of hotels have quite similar views.

The interviewees gave the distinct impression of anxiety among the handlers of businesses on the
unfolding phenomenon and painted a gloomy picture of the current situation. The use of
phenomenology was extremely useful and proved to be very apt since the crisis is still not over.
Most of the actions taken by hotel managers are either to mitigate the loss of revenue or
management of human resources and are new experiences creating newer perceptions for dealing
with a similar situation if that happens again.

The phenomenology approach helped to summarize the qualitative analysis identifying the
strategies that the hotels relied on such as financial capability, brand support and large customer
base to recover from such a crisis. This study found that 3-star branded hotels had an edge over
non-branded standalone properties. This was due to the financial and intellectual support that
they received from their corporate offices. If the situation worsens with time, the crisis might
result in the consolidation of the hospitality industry.

All managers agreed on moving to the next level in terms of maintaining hygiene, encouraging
contactless transactions and enhanced customer care. The local customer will emerge as the new
king! Digital marketing strategies have a larger role to play in these circumstances. The
managers are utilizing this time to strengthen customer relationship through personalized
messages and to strategize and prepare for pre-recovery phase as the lockdown is being gradually
lifted by the UAE Government. Similar to the emerging trends elsewhere (Patrick, Citation2020;

51
Sigala, Citation2020; Valle, Citation2020), the new norms and procedures are being
recommended which the hotels are ready to cope with in the Emirate of Sharjah as well.

It is also noteworthy that the Government of Sharjah has continuously been taking necessary
measures to ease the pain of revenue loss to the hotels. SCTDA has been a support to hotels in
managing information that would help both in the control of unnecessary panic and designing
programmed for employee training, besides methods to maintain hygiene safety. SCTDA has
also shown remarkable maturity in supporting the industry with exemptions in various fees and
taxes to keep the industry morale afloat. Loss of revenue has its impact on human resource
management which is of much significance in a people industry that is both a product and service
simultaneously.

There are two major takeaways of the study, one in the academic area of study approach and the
second in the understanding of impact and implications of a crisis of such proportion.
Concluding upon the first, it is notable that use of critical-realism as the conceptual basis for the
quantitative study through questionnaire survey, and qualitative study with phenomenology as its
theoretical footing with a triangulation approach, is very apt to study such rare phenomenon.
Secondly, the study not only successfully brings out the perception, sentiments, assessment of
impact, anxiety and expectations of the hotel sector but also signifies the role of preparation to
overcome such a crisis on the fundamentals principles of hospitality business, in different
categories. The authors are of the view that hotels must focus on developing financial capability,
brand building/support and customer base as their long-term strategy which can also help them to
recover from such a crisis.

The company had feared that because of huge losses, their operations could have to be
permanently shut down because it was challenging to control both fixed and variable business
costs. Alternative strategies have been utilized by businesses to survive in these dire
circumstances, including temporary staff layoffs, salary reductions for managers and employees,
and reductions in services and goods. Government regulations and strict rules have made it more
challenging to manage the firm in these urgent circumstances. Due to the lack of labor and
resources, businesses were unable to meet client requests. Long-term plans for businesses have

52
also been impacted because it is uncertain when UAE's tourist and hospitality industries will
recover. The COVID-19 outbreak has had a significant societal impact on business owners in the
tourism and hospitality sectors. The lockdown has had a negative psychological impact on the
owners as well as a negative financial impact; despair, anxiety, boredom, impatience,
restlessness, nervousness, and loneliness symptoms are prominent among them. Even with all the
safety precautions in place, owners still had trouble mentally adjusting to the new normal. The
owners' connection with their employees was impacted by the stress they were under due to
uncertainty about the future of the company. Despite the fact that the COVID-19 outbreak had an
impact on every aspect of company, the owners remained upbeat about the opportunities and
reorganized their operational strategy to be viable in both the present and the future. Although
the COVID 19 epidemic has negatively impacted the majority of the businesses in all areas, the
owners are upbeat about the future. They adopted improvised techniques, made investments in
internet marketplaces, and ran their operations there. To draw in clients on a national and
worldwide scale, aggressive digital media marketing was planned. Companies announced special
discounts for returning customers to plan future travel as well as special deals for canceled
reservations. Special packages for a stay-cation in UAE were made available at extremely
affordable prices to entice the international clientele. For cross-promotional purposes to engage
with local and worldwide audiences through virtual tourist events, many businesses amalgamated
with other businesses. Some businesses are still waiting for the UAE government's assistance to
help them survive the COVID-19 problem. The majority of businesses have asked for bailout
packages, a ban on term loans, lower interest rates, cash grants, and the postponement of taxes,
rent, expenses (such as utilities), and technical support for corporate digitization.

53
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