FT.com / World – Tourists bring in money – and a cultural clash
By Simeon Kerr
When the airline Emirates was ramping up its business in the 1990s, management suggested to Dubai’s rulers that they should build hotels on its pristine beachfront. The rulers, it is said, scratched their heads and wondered why anyone would pay to come to a harsh, desolate desert.
More than a decade on and Dubai has led the charge in developing itself as a tourism destination. As the emirate has realised that its limited oil reserves will soon dry up, tourism now accounts for a third of the city-state’s economy.
But as the summer heat grips the Gulf, hotels are slashing rates in a bid to fill rooms as cities turn into ghost towns. A week-long package at a top beach hotel is now cheaper than a scheduled return flight. Packs of bejewelled men from northern Europe now prowl the shopping malls sporting football tops. Local wags, playing on a British word for such downmarket types, dub it the summer chavalanche.
Even if Dubai’s “luxury lifestyle” has become more affordable for aspirational British holidaymakers, hoteliers say this summer is one of the worst in recent years.
Occupancy and room rates are way down, they say.
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