Report on UAE Tourism: PESTLE, SWOT, Porter's Five Forces Analysis

This report provides a comprehensive analysis of the tourism sector in the United Arab Emirates (UAE). It begins with an introduction highlighting the focus on art galleries and museums and their importance in showcasing historical events and artistic themes. The report then delves into a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors influencing the UAE's tourism industry. It further assesses the economic conditions, emphasizing the sector's contribution to the UAE's GDP and employment. Key issues such as governance, infrastructure, and security are discussed. The report also employs Porter's Five Forces analysis to evaluate the competitive dynamics, including the threat of new entrants, substitutes, rivalry, and the bargaining power of customers and suppliers. Finally, it analyzes key players in the market, specifically highlighting the Etihad Modern Art Gallery and Gallery One, along with the Sharjah Museum, providing a comprehensive overview of the UAE's tourism landscape and its strategic positioning.

VISITOR
ATTRACTION

Table of Contents
INTRODUCTION...........................................................................................................................3
PESTLE Analysis of UAE Tourism...........................................................................................3
Economic condition of the country ............................................................................................4
Importance of key issues in tourism sector of UAE...................................................................5
Porter's Five force Analysis of UAE Tourism............................................................................6
Analysis of key players in the market.........................................................................................7
Strength and weakness of Tourism industry in UAE..................................................................8
Opportunities and Threats of Tourism Industry in UAE............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
This report defines the outline and survey of the tourism of UAE mostly
highlighting about the area of art galleries and museums and their development in
today's era. Museums helps the people to know about the past and historical events
whereas art galleries contains picture on a specific theme which are demanded by
many people. The United Arab Emirates, sometimes simply called the Emirates, is a
country in Western Asia at the south east end of the (Quintal and et.al., 2019) Arabian
Peninsula on the Persian Gulf, bordering Oman to the east and Saudi Arabia to the
south and west, as well as sharing maritime borders with Qatar to the west and Iran to
the north. This report covers issues such as Pestle analysis, condition of the economy,
key competitors in this sector, importance of key issues, porter's five force analysis and
SWOT analysis of this sector.
PESTLE Analysis of UAE Tourism
UAE has many destinations and places which attract the people such as Burj Khalifa,
Atlantis the Palm above that there are also some places such as Sharjah fort which
attracts those people who are interested (Connell and et.al., 2017) in visiting ancient
and historical places. This analysis will helps them which factors affects this industry
and which will help to improve them.
Political Factors-
UAE includes seven emirates and each of them is ruled by an different individual.
It is considered as the most (Loda, 2017) powerful country in the middle east. UAE has
maintained good relations with every country which helps them to increase the level of
tourism of the country.
Economic Factors-
Economy of UAE is considered as 27th largest economy in the world. Most of the
revenue that the country generates is from the export of crude oil, diamonds, gold etc
but now the country is shifting (Oriade and Schofield, 2019) more on to the side of
tourism sector. UAE comes under the list of richest countries in the world and their

focus on infrastructure and development has increased the level of tourism and helped
the economy to grow.
Social Factors-
UAE is the home of immigrants as only 20 per cent of the population is originally
of Emirates and rest is (Urquhart, 2019) from other countries. There are other factors
such as the gap of income between the rich and poor is too (Connell and Page, 2019 )
high. Apart from that the cost of living in country is high with a high level of
discrimination on the basis of race which affects some people to visit the country.
Technological Factors-
Population of the country is advanced as they use all the updates that are
available in the market of this aspect. It helps them to use the strategy of digital
marketing so that they can (Kolar, 2017) attract more people to visit the country. Social
media is the most helpful tool for the country as it attracts more people to take a tour to
the country.
Environmental Factors-
UAE has developed at such a rapid rate which has resulted on decreasing
balance on these factors as the (Allahar, 2015.) large amount of construction led to
increase in noise pollution and led to decrease in other resources. Only thing that has
maintained the level of tourism sector is that it is safe for people, females can visit the
country alone.
Legal Factors-
UAE has very strict laws, rules and regulations which has resulted in maintaining
the lowest crime rate and makes (Scarles, Casey and Treharne, 2016.) it the safest
among other countries which helps in increasing the level of tourism sector.
Economic condition of the country
According to the reports travel and tourism sector of UAE contributes to 11.1 per
cent of the economy. In actual figures this sector helped in contributing approximately
AED 164.7 billion to the economy of the country which states the ratio of earning as one
out of nine Dirhams is generated by the tourism sector of the country. They have grew
in this sector by 2.4 per cent which has helped them to increase the level of
employment and approximately they have generated (Milman and Zehrer, 2018. )

around 6,00,000 jobs which states the ratio to be one in the ten jobs is because of the
growth in this sector. The major factors which has helped to revolutionize the change is
because the growth and development of hotel industry as well as the growth in aviation
industry specially by (Ballantyne zand et.al., ) Emirates and Etihad has helped to
develop the international airport of Dubai and gave it a new look which makes it in the
list of top airports. The most iconic spot of the country is Ras Al Khaimah which has
gained so much popularity and according to reports million people visit that place. It has
approximately 4,000 rooms but by the year 2025 they will need around 20,000 rooms so
that they can accommodate more and more people. Apart from this the country has also
taken up some new steps and initiatives such as implementing green tourism and hotel,
taking up seminars, conferences and exhibitions so that they can influence more people
from other countries to care about the environment. (Fyall and et.al., 2017.)
Importance of key issues in tourism sector of UAE
Governance, strategic planning and leadership-
UAE has made their strategy for long run which has helped them to transform
economically. They divided their plan into three parts in an strategic manner as they
knew that the reserves they (Jung and et.al., 2016.) had of oil were going to end which
is why they have invested in travel and tourism sector so that they keep on the level of
wealth that the country has. They have invested in hotels, islands, art galleries,
museums which helps them to make this sector into a successful one and continue to
keep on earning from that.
Infrastructure-
To attract the people and make their experience memorable company has
invested a lot of money in this sector. They have made the infrastructure of their hotels,
galleries, museums, airport very well which leaves a image in the minds of tourist and
their infrastructure of buildings is also (Cloquet and et.al., 2018.) competed with the
infrastructure of other countries. Apart from that there are some places which are
ancient such as the fort of Sharjah the infrastructure of the museum of illusions is
considered to be as antique as it is full of illusions. Their Al Jaber Gallery contains stock
exclusively for women.
Security-

UAE provides full security to their tourists so that they don't feel any kind of threat
and feel freely to roam so that they can (Hall and Ram, 2019.) maintain the stability in
their country. If people will feel safe they will visit more for instance if the destination
goes through a lot of attack by terrorists or face natural calamities more than usual then
they won't visit the place. Other than this the crime rate of UAE is also less because of
this people safe to roam the streets at night freely.
It can be analyzed from the graph that $42.3 Billion has been spent by UAE
government in year 2017. It can also be depicted from graph that this spending will be
increased by government in upcoming year $56.30.
Porter's Five force Analysis of UAE Tourism
Threat of new entrants-
This aspect of the model is concerned with the new companies who are entering
into the market so that they can prepare and overcome the barriers which are affecting
their business. (Yeh and Cheng, 2015.) Usually these type of barriers and level of
competition is high in UAE as they have the most no of galleries and museums there. If
more business will enter in the market then the overall growth of market may increase
but the individual growth of the businesses decreases. To prevent themselves
businesses who have been serving in the market for long puts a barrier for new
companies by reducing their prices as they have the power to do that. (Albrecht, 2016. )
Illustration 1: Tourism of UAE
(Source- Tourism sector of UAE, 2019)

Threat of Substitutes-
This aspect of the model states that the tourists can shift to any company on the
basis of their suitability and preference (Huang and et.al., 2016.) as the cost of
switching to other companies is low and the customers switch to those places who offer
them benefits and low prices for their services.
Rivalry among existing competitors-
If the sector of UAE tends to fight with each other or keeps on engaging in
conflicts then the tourists will be the one who will be getting benefits instead of
companies. For instance the (Biraglia, Gerrath and Usrey, 2018.) people will get either
less prices for their services or they will get reduced quality of service which will overall
reduce the share or level of contribution that the sector of tourism makes in the
economy of the country. For instance UAE has a lot of hotels, (Leask, 2016.) galleries
and museums which operates on a large level and a less no of organizations which
operates on a small scale which rise the level of competition between them and affect
the economy.
Bargaining power of customers-
This aspect of the model is concerned with the process of buying and the
spending power of consumers. In the sector of (Bhati and Pearce, 2017. ) tourism
consumer is the one who has the high power of bargaining as there are many
substitutes available in the market of UAE which gives the higher hand to the
consumers.
Bargaining power of suppliers-
This aspect of the model is concerned with the level of power of suppliers in the
process. In the sector of accommodation and attraction for visitor it is low as they deal in
the are where nature of (Kempiak and et.al., 2017. ) services is fragmented. Suppliers
don't have a flexibility in power as the items which are stored in the art gallery or
museums are fixed specially in the case of museums which don't give them the power
to change the price.
Analysis of key players in the market
Etihad Modern Art Gallery-

This gallery is considered as one of the most dynamic in galleries of art in Abu
Dhabi. It is always in the list of people who are on a tour for visiting the country so that
they don't miss the top level of art. (Dodds and Jolliffe, 2016. ) The gallery includes the
art work of some of the famous artists. It also helps to encourage the local artists of the
country and give them the chance to put their paintings there so that they can increase
the level of domestic artists as well. (Jensen, Li and Uysal, 2017.) Some of the artists
whose paintings are there are Ufuc Kobas, Svilen Petrov, Sattar Kawoosh or Khalid Al
Najjad. Apart from this many events such as workshops are organized by them
throughout the year for all age of people.
Gallery One-
This gallery of art is considered as a landmark in Abu Dhabi. They have hosted
the work of some of the famous artists such as Wissam Shawkatt, Helen Abbas, Tariq
Dajani, Khalid Shaheen and Paul Sheldon. (Paraskevaidis and Weidenfeld, 2019.)
Apart from this they also showcase the work of other people such as treasures of
Nasser a collection by D. Khalili. They have become so successfu that they now are
forming up as a international brand. The first branch of this gallery was opened up in
2006 in Dubai.
Museums-
Sharjah Museum-
It is considered as one of the best museums of UAE as it focuses on highlighting
the factors which are historical and that too with the help of visual effects. They go back
to the time of Empire of Islam (Björk and Weidenfeld, 2016.) with the manuscripts and
the artifacts which are religious. The information they provide is very captivating and
tourists who come to visit the place can easily visit as instructions are provided to follow
the path which makes it easy for them.
Heritage House-
This museum opened up in the year 2008 under the foundation of Alserkal
Culture. There goal is to promote culture and heritage as well as the artists who are
localites of UAE. They want to make an effective tool so that they can showcase the art
of Middle Eastern culture (Weidenfeld, Butler and Williams, 2016. ) this is their main
aim. The museum has two floors and they offer things such as learning the style of

calligraphy, drawings, mosaics as well as work on the skyline of the country by learning
the skills of building skyscrapers.
It can be analyzed from the graph that Dubai has been highest spending done on development of
tourism in comparison with Mecca, Bangkok and Paris. They have spent $30.82 in the year
2018.
Art Galleries No. of visitors
Etihad Modern Art Gallery 15,00,000
Gallery One 20,00,000
Museums
Sharjah Museum 43,25,000
Illustration 2 : Visitor in UAE
(Source- Visitors in UAE, 2019.)

Heritage House 30,12,150
The industry of tourism from factors such as transportation and facilities of
accommodation as the prices for both the aspects is very high which discourage the
people to visit the place.
Strength and weakness of Tourism industry in UAE
Strength-
UAE has many spots and destinations which attract many people and develop a
urge in the minds of people as they have the best infrastructure of hotels, buildings,
museums which makes people to never miss the chance to visit the place. Due to
globalization the (Loureiro and Sarmento, 2019. ) diversity in the culture has increased
there which states that mix caste and mix religion of people lives (East and et.al., 2017.)
there which allows tourists of different caste to visit the place as they knew that they are
going to be respected and welcome in the country. UAE is a developed country which
states that they have a lot of improved facilities for transportation such as luxury airlines
for tourists such as Emirates and Etihad. With the help of tourism in the country they
have increased the level of employment. Over 6,00,000 people in UAE is employed in
this sector. UAE has maintained good relationship with other countries which allows
them to get more tourists from other countries.
Weakness-
UAE needs to train their people who greet the tourists as if they don't focus on
satisfying their needs then they won't visit the place and spread a negative word of
mouth. This is the reason why turnover rate of staff in this sector is high as they have to
face a lot of pressure that too in a minimum rate of wages. To cope up with this field and
satisfy the tourists high quality (Weidenfeld, Butler and Williams, 2016.) of work and
experience is required. The people who are employed in this sector takes time to
change and adjust with the changing needs and demand of people. UAE has a lot of
scope to improve their strategies for their museum and art galleries just like they do for
their other tourist destinations.

Opportunities and Threats of Tourism Industry in UAE
Opportunities-
UAE has the scope to improve the customer service and have a lot of space to
serve more people as the economy has already shown growth in this sector. Spending
power of people is more which makes them easy to target and serve more customers.
People who visit are of different cultures which help them to maintain the relations of the
country with other people. (Connell, Page and Meyer, 2015.) They have the scope to
add more artists in their galleries and feature their work at an event so that they can
also gain some amount of fame which will be beneficial for the company. UAE is a
wealthy country which means that they can easily take the help of technological
resources which will help them to attract more people.
Threats-
Even though the country has an easy and open facility for giving visa there are a
lot of people who feel that there are a lot of restrictions in the country which limits the
fun of tourist. They respect that it maintains the decorum of the country but they believe
that they can cut some of them so that they can make their experience more memorable
in the country. Apart from that they face a lot of competition from different countries as
there is a cut throat competition (Ram, Björk and Weidenfeld, 2016.) in this sector for
which they have to increase their services and lower their prices so that they can
compete with other countries. UAE needs to advertise their historical and ancient places
so that they can attract those people who have a interest in visiting those places as they
only focus on marketing of their hotels and other spots which has become famous all
over the world.
CONCLUSION
From the above studies it has been concluded that Art galleries and museums
are one of the best and unique sub sectors that comes under the category of visitor’s
attraction. Today attraction towards Art galleries and museums has increased drastically
as compared to other visitor’s attraction sub sectors. Various countries are focusing in
promoting this sector such that a (Andersson, 2017) greater number of organizations

can invest in this sector in order to attract both domestic and international customers.
There is a lot of scope of development in this sector. Government can focus on
promoting creativity of various artist as well as convenience in order to increase number
of visitors in this industry. UAE is investing a huge amount for the development of this
sector so that they can get and attract more visitors and shift the primary income of the
country from the export of crude oil to tourism sector. The lower level of crime rate
which results in making the place safe also helps them to get more people. UAE has art
galleries and museums such as Sharjah Fort, Gallery one which attracts many people.
This report also gives a description and information of how popular they are and how
many people visited that place. More people are shifting to visit these places as
compared to the places and areas of entertainment.