Dubai-City of Gold-by Preston Merchant “A few years ago, when you heard about plans like these, you would have thought, ‘They’re crazy—plonkers,’” says John Cussen, his British skepticism fully evident. He is the general manager of Amusement Whitewater, a Dubai-based firm specializing in amusements and themed construction. He is referring to the plans for tourism development in Dubai and the often outrageous character—both in terms of expense (in the billions) and theme (artificial islands in the shape of a jigsaw-puzzle map of the world)—these projects take on. “But in Dubai,” he says, “the impossible happens.” Everything’s Big in Dubai On the calm shores of the Gulf in the United Arab Emirates, nothing is done on a small scale in Dubai. Every new project is the biggest or tallest or most expensive in some category, reflecting local pride, of course, but also establishing Dubai as a place of limitless ambition. Once known for its importance in the gold and spice trades, Dubai has risen spectacularly out of the desert to become one of the world’s great tourism and business destinations. Consider some of the more recent projects and announcements. The World, an attraction to be located about four kilometers offshore, will consist of 250 artificial islands in the shape of a map of the globe. Private and commercial interests will be able to develop the islands as they see fit. Imagine being able to buy your own Florida or France. Nearly $1.8 billion will go toward creating these islands just off Dubai’s most exclusive beachfront area. The World might seem preposterous if not for the fact that the Palm, a collection of islands in the shape of a palm tree, has already been built with 100 million cubic meters of sand and rock. Just offshore and visible from Jumeirah Beach, the Palm has increased Dubai’s coastline by 60 kilometers. Nearly 2,000 private beachfront villas have been sold and 25 boutique hotels are planned, along with a generous array of amusements, water rides, and other family entertainment. Construction of these facilities should begin soon. The response has been so enthusiastic among investors and developers that Palm II has already been announced, which will be, naturally, larger than its predecessor. The island resorts make Dubai’s original “impossible” idea look tame. The Hydropolis—“the world’s first underwater luxury hotel”—is slated to be completed by late 2006 at a cost of half a billion dollars. Everything Dubai touches seems to turn to gold. Dubai’s formula for this magical transformation is tried and true. It is extremely friendly to foreign businesses and developers, who operate tax free. And thanks to Dubai’s location, businesses have access to 2 billion people in the region—the Middle East, the Indian subcontinent, Northern Africa, Eastern Europe, and Central Asia. But the emirate can handle it. Dubai has spent the past decade or so developing its basic infrastructure—roads, luxury hotels, business parks—and fostering an open and tolerant society. Plus, Dubai’s airport can accommodate 24 million people per year (a third terminal, to open in 2006, will boost capacity to 60 million). People come to Dubai to work and play, and the government, which strictly limits political activity, ensures that these activities can occur unencumbered. A Treasure Trove Dubai has always been an offshore haven for trade and a magnet for visitors. With a calm narrow inlet from the Persian Gulf, Dubai has a natural harbor that became the heart of a trading settlement along a busy route. In 1894 the ruling sheikh granted tax exemptions to foreign traders, so Dubai became a hub for gold and spice trading, as well as a crossroads of cultures stretching from Arabia to India to the Horn of Africa—a position it still enjoys. Dhows, traditional wooden cargo vessels, plied these routes, and still do today. Pearling and fishing also became important to the local economy. Oil was discovered in Dubai in 1966, though its resources were shown to be modest compared to nearby Abu Dhabi, which had struck oil a decade earlier and sits atop nearly 10 percent of the world’s proven oil and gas reserves. Dubai’s government set out to diversify its economy. Reliance on natural resources gave way to manufacturing and light industry, which was in turn superceded by services, including tourism. Today these sectors are the largest contributor to Dubai’s GDP at 16 percent. Local Culture Dubai’s history and culture are beautifully presented at the Dubai Museum through a series of life-sized dioramas and displays. Entering the room, the visitor steps off a dhow in the 1950s and into Dubai’s souq, its traditional market. It is evening. Lanterns glow in the spice and gold stalls. You can hear the sounds of traders hawking their wares and blacksmiths hammering iron. Sacks of grain wait to be unloaded from the dhow. Lights wink along the city’s low skyline of windtowers—an early form of natural air conditioning—on a painted mural. You can tour a Bedouin home and visit an oasis in the desert, where tribesmen gather around a fire. There is even a point where you find yourself seemingly underwater, peering up at the dangling legs of a pearl diver hanging off the side of a small dhow. Dubai is ever conscious of its image in the region and the world. It is a conservative Islamic culture that takes modernity on its own terms. Hamad Bin Mejren, the manager for missions in Dubai’s Department of Tourism and Commerce Marketing, calls Dubai “Twenty-first Century Arabia.” He praises the emirate’s can-do attitude, which stems from confidence in the traditional aspects of its culture—hospitality, openness, an emphasis on family. These values have enabled Dubai to create an environment for world-class tourism in a region often plagued by conflict. “Dubai is unique in its ability to combine safety and leisure,” Bin Mejren says. While one might suspect that Dubai would have seen a decline in its tourist arrivals after September 11, 2001, as air travel became increasingly restricted and government warnings were constantly issued, Dubai actually experienced an upsurge. The period from 2001-2002 saw its largest tourism increase. In 2003, nearly 19 million passengers passed through the Dubai airport. Growing Pains Fuelling Dubai’s aggressive growth is the need to overhaul its current infrastructure, which is barely adequate (at the moment the city only has 30,000 hotel rooms). From 1991 to 2002, hotel stays increased from 700,000 to 4.75 million. Emirates Airline, the UAE’s flag carrier, has expanded its service to include New York, Chicago, and San Francisco—its first direct flights to the United States—and is investing $15 billion to procure new aircraft. Dubai is banking on the fact that its place in the global economy, as a hub for business and tourism, will continue to grow. There is plenty of money in the Gulf region, Northern Africa, and India, and Dubai, with its long exposure to these regions, aims to capture it. Opportunities abound in Europe and the United States, as well. So Dubai is eager to grow the value of its brand. It operates 14 overseas offices to promote tourism, trade, and investment. It also has a knack for grabbing headlines in the business pages, both for its ambition and its whimsy. Work has begun, for example, on the Mall of the Emirates, billed as the region’s largest shopping mall. Dubai already has about 40 fully appointed malls, but each tries to offer something unique. In addition to retail and food, the Mall of the Emirates will present the world’s largest indoor ski resort—in the middle of the desert. “We’ll import the snow from Denver,” jokes Bin Mejren. Located in Dubai’s western quarter, the Mall of the Emirates will capitalize on the growth from the Palm and World projects. Dubai’s integration of entertainment elements, including themed attractions and waterparks, into retail and hospitality facilities invites comparisons to Las Vegas, another ambitious city rising out of the desert sands. Salem Bin Desmal, deputy director general of the Dubai Development and Investment Authority (DDIA), accepts the comparison but adds, “Without the gambling—emphasize, without the gambling.” Dubai’s interest is in family-oriented tourism, so the entertainment and amusement offerings move in that direction. The “Disneyland of the Region” The DDIA is charged with coordinating Dubai’s largest tourism-related project, possibly the largest ever undertaken anywhere. Dubailand, with 45 projected tourism, leisure, and entertainment projects, will occupy 1.5 billion square feet and should attract nearly $6 billion in investment. Multiple theme parks and waterparks are “the heart of the project,” says Bin Desmal. “Our vision is for this to become the Disneyland of the region.” Dubailand will become its own city, complete with independent municipal services for tenants, provided at the highest standards for safety and efficiency. An integrated transportation system, including a monorail, will bring visitors from other parts of Dubai, including the airport. This new city will have a unique look and feel. “It is very important to create a new identity,” says Bin Desmal. Dubailand will be divided into six components: Attractions and Experience World for thrill rides and hi-tech entertainment; Sports and Outdoor World for arenas and training facilities for international cricket, rugby, football, and other sports; Eco-Tourism World for nature- and desert-based attractions; Themed Leisure and Vacation World for resort hotels, spas, and fitness facilities; Retail and Entertainment World for shopping (including the Mall of Arabia to supercede the Mall of the Emirates); and Downtown for movies, restaurants, and nightclubs. Bin Desmal says that these attractions will all complement, rather than compete with, one another. The four major theme parks, as part of the larger entertainment facility, he says, “are vital to the success of the project as a whole. Disney has proved this is possible.” One challenge for these parks is to be able to function year-round. While Dubai enjoys near-constant sunshine and warm temperatures, the late summer months can be unbearable with extreme, even dangerous, heat and humidity. A theme park will have to provide plenty of shade and a mix of indoor and outdoor components, including keeping some queues for rides in the air conditioning. For all its international press, Dubailand is still geared toward the Arab and Asian markets and will be in keeping with the interests and tastes of those regions. Much of the theming, including the Arabian Legends park, will be based on the 1001 Nights, the collection of tales that draw on the cultures of Arabia, India, and Iran. A Pharaohs theme park will bring North African and Egyptian culture to the fore. There will also be plenty of heritage centers, in addition to technological and science-oriented projects. Dubailand will make the diversity of the region’s cultures available to a global audience. When Dubailand was announced in the fall of 2003, it was a challenge to the emirate’s doubters, even those who had seen the Palm projects take hold. The scale and variety of Dubailand beg a comparison, even given the ambition and scope of Disney’s international ventures. Dubai is projected to attract 15 million tourists annually by 2010, up from 4.7 million in 2002. It has all the pieces in place, not least of which is the fact that visitors can bank on being safe and well served during their stay. Plus, Dubai has plenty of momentum. It is the place to be, not only for an increasingly large segment of the world’s tourists, but also for investors, developers, construction firms, theme park designers, hoteliers, tour operators, and retailers. As Amusement Whitewater’s John Cussen says as he considers the challenges here, “People have a passion for Dubai. There are challenges here you won’t get anywhere else. This is an extremely exciting place to be.”