Retailers and mall operators in Dubai keep reporting stronger and stronger financial results. If you drive on Emaar boulevard at any given time of the day, you will see large groups of tourists pouring out of busses and heading towards to the Dubai Mall. They are mostly Russian and Chinese guessing by their looks. Russian women generally dress very tasteful, while the majority of Chinese tourists is in love with their cameras. This is is the right mix of customers for any shopping mall in the world! Women will always spend on fashionable clothes and accessories, while men will always look for the latest technology.
Spending is largely responsible for the strong performance of Dubai’s economy. Everybody spend everywhere. Tourists spend even more for shorter periods of time. They buy plane tickets, book hotel rooms, eat mostly in restaurants and cafes, buy souvenirs and willingly pay for exclusive photo shoots near prominent landmarks. All Together, they have a great time in Dubai, where entertainment and hospitality is in abundance.
Therefore, it is not a surprise that the tourism and retail sectors of the industry in the emirate firmly grows.
The growth starts from the checkout path at the airports of Dubai. Dubai International announced a surplus of 50 million passengers in 2012. In addition the occupancy of hotels climbed by 10% in the first half of the same year.
In respect the crowds in the malls are getting larger, making way to good sale scales and raising the floor space demand.
According to the state-owned owner of The Dubai Mall – Emaar, the retail outlet visitor’s number reached 5.2 million in 2012. This is a half a million growth on a yearly basis. Also the number of brands sold in the mall rose by 25%.
The outperforming tourism sector of Dubai drove record levels of sales in the Dubai Duty Free in 2012.
In addition, the reviving economy raises the tide of residents in Dubai propelling the shopping spree. By forward estimations the state GDP gained by 4.3%.
In the first 10 months of 2012 the economy rose to a record Dh1.29 trillion supported by foreign trade.
The relative stabilization of the housing market in some parts of Dubai is also a positive news for developers with retail space portfolio. They will all benefit form the higher occupancy of residential properties.
The long decline in rents has come to its end in some parts of the city. Property consultants claim that in 2012 the rental rates in some parts of Dubai increased, but moste agree that rents are now stable.
By announcing a variety of leisure projects to capitalize on the flourishing tourism sector, the Emirate strengthened its confidence and outlook for recovery. On the list of projects is the building of many new hotels and few leisure and entertainment parks.
