Dubai / Las Vegas Comparison

Destination Development
Dubai & Las Vegas – A comparision

Historical Perspective

Discovery of oil led to concessions to
international oil companies
Foreign workers erupted the population by over
300%

The formation of United Arab Emirates (UAE)
becomes a reality


Gulf Air, a joint venture between Abu Dhabi,
Bahrain, Oman and Qatar, decided to cut back
its services to Dubai.

This prompted Dubai to launch its own airline.
The Emirates Airline began in the UAR with 2
rented planes and a $10 million investment from
Dubai’s ruling family under the direction of
Maurice Flanagan.


The Dream Becomes A reality!

Beginning of growth and development due to
Strategic decision made to emerge as a major
international quality tourism destination.

Dubai 1990

The economy is dominated by three major
sectors:
Tourism
Oil/Gas and related activities
Property Construction
Dubai A City of Growth!



Dubai is a place where East meets West. Dubai
is cultivating the perfect combination of its own
traditional approach fused with Western
capitalistic interests and thus making Dubai a
great economic force. First: 1993
Middle: 1999
Last: 2006
These three
images of a
main street
running through
the city show
the huge
advancements
in the cities
growth between
the years of
1993 and 1999
and 1999 and
2006.


The Dream Becomes A reality!


Dubai is most definitely a home to many firsts
and superlatives  It has:
One of the biggest airports in the world
The largest man-made port in the world
The largest mall in the world
The largest theme parks in the world
bigger than Disney Parks in Florida
The only 7 star hotel in the world!
The largest skyscraper in the world
Palm Juneriah  the first man-made palm-
shaped Island

Burj Al Arab lit up at night time


The City At Its Peak!

Dubai is a country with an unlimited budget for
growth

It also represents a unique transformation in the
Persian Gulf , a petro-dollar rich location that
thought beyond oil to a time when its economy
And Dubai is still could no longer be fueled by its oil reserves
growing! and decided to invest instead in travel and
tourism - and is now acting on the vision

In 1996 two events help to place Dubai on the
world stage as a major tourist destination. The
two events were the Dubai shopping Festival
and the Dubai Soccer World Cup, they both
enhanced Dubai`s reputation as at tourist
Mecca



Oil revenues in Dubai dropped to 7% of GDP as
economic development expanded to transport,
tourism and business. Dubai, ruled by the
wealthy al-Maktoum family, planned to become
the main financial center between Europe and
Asia.

The Gulf emirate of Dubai announced it had
bought the Queen Elizabeth 2, one of the
world's most majestic cruise liners, and planned
to turn it into a luxury floating hotel.



In 2005 the state-owned Emirates planned to
double its 73-plane fleet.

Dubai began creating a world-class financial
centre as part of its diversification into service
industries before running out of oil and gas.

It was reported that Dubai was constructing the
$5.5 billion Palm Island resort project,
scheduled for completion in 2006. The $4.9
billion Dubailand tourist city included 45 theme
parks, sports centers and discovery zones.



It was reported that two subsidiaries of
government-owned Dubai World have acquired
a 20% stake in Canada’s circus operator Cirque
du Soleil. In May the circus had agreed to
perform on Palm Jumeirah, a man-made island,
for 15 years starting in 2011

Dubai is threatened by bankruptcy. The United
Arab Emirates said it will spend $10 billion to
bail out Dubai, whose huge construction and
financial sector expansion plans slowed under
the world wide downturn.



Developers of the Burj Dubai, a 1,680-foot
skyscraper still under construction in oil-rich
Dubai, claimed that it has become the world's
tallest building, surpassing Taiwan's Taipei 101
which has dominated the global skyline at 1,667
feet since 2004.

In 2008 NYC David Fisher, an Italian architect,
said he is poised to start construction on a new
skyscraper in Dubai that will be "the world's first
building in motion," an 80-story tower with
revolving floors that give it an ever-shifting
shape.



World’s tallest building Burj Khalifa stands at
829.84m. The decision to build Burj Khalifa is
reportedly based on the government's decision
to diversify from an oil based economy to one
that is service and tourism based.

Burj Khalifa tower opens in Dubai as the world's
tallest building and man-made structure in 2010



The Travel & Tourism industry has a high
significance to Dubai’s economy (direct
contribution of 20% & 6% to Dubai’s GDP and
total employment, respectively)

Dubai is one of the Top 10 tourism destination
cities in the world, primarily driven by business
and leisure (shopping, beach, etc.).

In the UAR Dubailand, a tourism and
entertainment complex, hopes to attract 15
million tourists annually by 2015. This will
amount to about 40,000 visitors per day.



The establishment of world-class infrastructure
and landmark projects (such as Burj Khalifa,
Dubai Mall, Meydaan racecourse, etc.) coupled
with marketing initiatives by Emirates and
DTCM have been the key drivers for Dubai’s
tourism industry.

A strong government focus to develop tourism
through diversification into new tourism
segments (cruise, medical tourism, sports
tourism, etc.) is expected to further drive growth
of the industry.

s
Vega
Las
at ion:
Destin


The First Phase – the Railroad City

Birth of Las Vegas  incorporated as a city

The completion of the Railroad between L.A.
and Salt Lake City establishes Las Vegas as a
Railroad town

Western Airlines first flight to skies

Las Vegas is in the apploration phase. There is
little or no infrastructure.

No of residents total 945 of which 80% work for
the Railroad Company


The Second Phase – Gambling Divorce Law and Hoover
Dam!
3 events occurred that changed Las Vegas for
ever
The construction of the Hoover Dam
Nevada legislature legalized gambling and
quickie divorces
Freemont street’s gaming casinos attracted the
workers from the Hoover Dam the foundation
of Las Vegas as a resort industry thus begins


The Third Phase – “ The Strip” Tourism and Entertainment
Evolves
After World War II decorated Hotels and
gambling casinos emerged.
The Strip’s first hotel El Rancho Vegas Opens.
Representing the first stand alone full service
resort offering rooms, food, swimming pool,
gambling and entertainment
J. Walter Thompson receives first advertising
contract to promote Las Vegas as a Tourist
Destination


The Third Phase – “ The Strip” Tourism and Entertainment
Evolves
The Strip begins transformation from small
gambling clubs to boasting casinos and luxury
resort hotels
Las Vegas is in its involvement stage and tourist
products and services are increasingly offered
Tourism & Entertainment takes over as the
largest employer in the city
Las Vegas focuses itself on a post war
reinvention of itself and its metamorphosis into
an attractive gambling destination


The First Milestone – Flamingo Hotel and The Concept of
Theming
Bugsy Siegel opens the Flamingo Hotel and led
to a new era in Vegas. The hotel casino was
modeled after resorts hotels in Miami and
started the trend of the “themed” hotels.
Moreover it spered with Dean Martin and offered
value added through high-class entertainment

Bugsy’s hotel concept led to Las Vegas
Development phase and provided the
foundation for its future incredible expansions.

The Flamingo provided one of two significant
parameters of the middle era of Las Vegas
gaming history and ushered its city’s proletarian
phase.


The Fourth Phase – Growth through Entertainment

After the grand opening of the Flamingo, resort
building continued to accelerate in Las Vegas
starting in the 50s by copying the successful
star format for a number of years eg. The
Tropicana, The Sands, The Dunes, The Sahara
or Ceaser’s Palace

Consequently people visit Las Vegas not jut for
gambling, but also for the fantastic
entertainment provided. Singers, strippers,
topless dancers and a wide variety of
performers contributed to the Las Vegas
proletarian image.


The Fourth Phase – Growth through Entertainment

Las Vegas experienced its development phase
from 1950 to 1980. With the popularity of the
destination, visitors increased rapidly.

Tourist facilities and special tourist infrastructure
arise and the destination changed in
appearance and is now actively promoted

However by the end of the 80s experts consider
Las Vegas being at its consolidated phase. The
city seems to have reached its full maturity and
overbuilt its room inventory. Dumping prices and
cheap promotions are expected.

Nevertheless Steve Wayne started a brand new
hotel project & terminated the proletarian phase.
A new Vegas era begins


The Second Milestone of Vegas – The Mirage

Steve Wayne opens first mega property “ The
Mirage” with more than 3000 rooms in order to
attract high end guests of the tourism market.
White dolphins, tigers and lions arrive in Vegas.

The resort strategy is born

“ its all entrance and no exit. The tourist finds
himself in a timeless world of concentrated
stimuli design as much to be disorienting as
pleasurable in a relentless campaign to extend
the length of onsite visitation” (Douglas, Reanto,
2004).


The Fifth Phase– Dawn of Mega Resorts and High Quality
Tourism
In order to change the city imagefundamentally
the old Dunes (built in 1995) is imploded in 1993
which also held symbolic significance for Vegas.
The implosion of the Dunes dermacated the end
of an old and proletarian Las Vegas.

Consequently many other first generation Strip
resorts lost their identity through implosions,
extensive renovations and new owners


Tourism
According to this new strategy, Las Vegas
planted 76,000 palms, bushes and ground
covers for a beautification of the city.

Furthermore, a large number of Mega Resorts
are built. At the end of 2000 the strip has 9 of
the worlds 10 largest hotels. Bellagio, Venetian,
Mandalay Bay, Mirage, Paris, New York etc.


Tourism
For e.g. the Bellagio addresses the affluent
guests by offering World class entertainment
(Circque du soleil) and art from the likes of
Picasso

Las Vegas emerges as a major gastronomic
and shopping destination presenting 4 of 17 star
restaurants in the US and highly attractive outlet
centers.


Tourism
The Mirage literally reconfigured the strip and
Las Vegas went from being a proletarian
discount delight to one in which hotels like the
Bellagio and the Venetian charge more the 400
dollars per night

As Las Vegas was considered to be at the end
of its consolidation phase at the end of the 80s
this new “high end tourism” strategy led to a
further economic increase. From 1990 to 2000
visitor numbers increased by 71%, hotel
inventory by 69% and game revenue by 87%


Tourism
However, with the construction start of these
Mega resorts and the reliance on gaming as the
primary source of income, Las Vegas is
considered to grow unsustainably and faces
many with the new millennium such a
decreasing visitors as well as revenues


The Sixth Phase– Consolidation and Decline

From 2001- 2010 Las Vegas building boom
continued. Thus, Steve Wynn opens one the
most expensive Megaresort “Wynn” in 2005
which cost about 2.7billion dollars. Also in 2008
the Resort-Casino “Palazzo” opens its doors. In
combination with the Venetian, it provides 7128
rooms and constitutes the world’s largest hotel
property.

According to statistics of the Las Vegas
Convention & Visitor Authority the city was in
an unfavorable position. Room inventory was
still rising causing dire overcapacity and forcing
other hotel operators to offer discount prices


The Sixth Phase– Consolidation and Decline

Absolute visitor numbers were rising until 2007,
when they began to rapidly decline in relative
terms (consolidation)

In 2008 tourist occupancy rates as well as
gaming revenues decreased

Las Vegas had reached its decline phase of the
Tourist Area Life Cycle.

“This desert valley, which once represented the
most extreme pleasures in American
consumerism, now has the most severe
hangover” (Economist 2010)


The Seventh Phase– Rejuvenation & Product Innovation

Visitor volume is the single-largest determinant
of Southern Nevada's economic health, driving
hotel occupancy, average daily room rates, and
gaming revenue. All experienced modest
increases in 2011 and are expected to continue
to improve in 2012.

Visitors drive hotel occupancy, average daily
room rates, and gaming revenue. Overall, 2011
was good for Las Vegas tourism. In 2010, visitor
volume grew for the first time since 2007.

Las Vegas currently pursuing the image of a
Family Destination

Conclusion

Two desert cities half a world away — Las Vegas and Dubai — have
grown from dusty outposts into tourism empires.

Both cities were built up as tourist destinations in a place that would
never get tourists otherwise.

Like Las Vegas, Dubai — an emirate located on the Arabian Peninsula
— has experienced tremendous growth during the past two decades.
Once solely dependent on oil reserves, the city now has the world’s
largest concentration of five-star hotels.

Conclusion

Both cities constantly build newer, bigger and better attractions to keep
visitors coming back.

Both cities had a massive housing bubble burst when the world
economy tanked in '08. Both cities are far more fun to visit than to live
in.

Both cities are run by those well-connected to the unelected officials
with the real power.

Both cities are still today world-famous tourist destinations

Dubai / Las Vegas Comparison

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