Since the Ruler of Dubai,
H.H. Sheikh Mohammed bin Rashid Al Maktoum, helped launch the United Arab
Emirates’ “Vision 2021,” a blueprint for the country’s economic and social
reforms, Dubai has actively pursued economic diversification strategies.
While oil revenues still make up 1% of the UAE’s GDP, successful
diversification efforts have reduced this number significantly from 25-30 years
ago, when oil accounted for almost half of the emirate’s GDP.
A major part of the UAE’s
diversification strategy has been a focus on the tourism industry, which
has grown to represent 11.6% of the UAE’s GDP. Dubai
recognized the sector’s potential to improve its future prosperity, and has
utilized “destination branding” strategies to attract both international business
and leisure travelers. The emirate has also invested heavily in its airlines,
airports, and connecting infrastructure with the goal of making itself into a
global connectivity hub for international events such as the World Expo in
2021-2022 and the upcoming COP28 environmental summit in Dubai.
Established in 1985 and
headquartered in Dubai, “Emirates Airlines,” the UAE’s flagship airline and one
of its two flag carriers alongside Etihad, acts as a global ambassador for
Dubai and the UAE—not only through its far-reaching flight schedule and wide
range of destinations, but also through sponsorships of major football clubs
such as Arsenal, AC Milan, and Real Madrid, and sporting events such as the PGA
Tour, ATP tennis events, and the Dubai World Cup of horseracing. The emirate’s
strategy is to leverage the name it has made for itself as a world-class
destination into so-called “soft power,” defined as a country’s ability to
influence others through attraction, persuasion, and cultural appeal rather
than through coercive military or economic means. The strategy seems to be
working; in the 2023 Brand Finance Global Soft Power Index, the UAE was ranked in
the top ten.
Emirates Airlines is an
integral part of Abu Dhabi’s efforts in this regard. “Aviation diplomacy,” a
form of soft power, can be understood in reference to promoting and projecting
national identity. Emirates carries the UAE’s flag around the world and serves
as a driver of public diplomacy. Similarly, Dubai’s main airport—a layover stop
for many travelers between Europe, Africa, and Asia—helps to brand the city as
modern and world-class. In this way, Emirates Airlines has become an important conduit in building the international
image of the country. The airline is an example of the judicious use of soft
power, and has transformed into a carrier with a global identity.
The Making of a Modern
Hub
An integral part of tourism
is the airline industry, and the Emirati government has invested heavily in
building world-class airports and airlines that not only bring people to the
country but also bolster its international reputation. In 2023, Dubai
International Airport (DXB) was recognized as the world’s best airport,
according to the Business Traveler Middle East Awards; it is anticipated to
welcome 83.6 million passengers in 2023, an 1800% percent growth from 1988.
Moreover, according to the 2019 OAG Megahubs Index—which ranks airports and
airlines based on their connectivity and the number of connections they
provide—Dubai Airport topped the ranking in the Middle East and Africa, with a
connectivity index of 168. Dubai’s strategic location between continents makes
it an ideal layover point for many long-haul flights. Around 80 percent of the world’s population lives within an
eight-hour flight of Dubai, making it a transfer point accessible to nearly
everyone.
Adjacent to Jebel Ali is Al
Maktoum International Airport, a major cargo airport and among the largest air
cargo facilities in the world. The UAE’s logistical infrastructure provides
“frictionless” movement of cargo, distinguishing it from other ports in the
Middle East that face significant bureaucratic and political challenges. The
UAE’s ability to sustain its role as a “nexus state,” as Christian Henderson, a
Middle East scholar from Leiden University, has described it, relies on its flexibility and adaptability
in response to changes in the global economy. During the height of the COVID
pandemic, Emirates aircraft bereft of passengers were converted into cargo
planes, and the airport became an air hub for the shipment of personal
protective equipment (PPE) and vaccines in specially designed containers.
Building Influence Through
‘Affordable Luxury’
Emirates Airlines enjoys
significant competitive advantages over other international airlines. Because
of the UAE’s abundance of oil and government support, Emirates has a lower fuel
cost than competing airlines, and Dubai keeps its airport charges lower for its
flag carriers than its competition. Emirates’ non-unionized workforce not only
keeps labor costs low, but also reduces the chance of strikes interrupting flight
schedules.
The flexibility of Emirates
schedule also gives the airline an advantage. There are no night curfew rules
in Dubai, so passengers can choose from flights at any time of day or night. This
unrestricted schedule empowers the airline to offer an extensive network of
connecting flights, reducing layover times and enhancing the overall travel
experience for its customers. As a result, Emirates Airlines can offer
competitive fares, maintain high profitability, and invest in enhancing
customer experience and expanding their global network.
One of Emirates most
prominent soft power tools is its extensive sponsorship deals with major
football clubs. The airline “invests some $300 million per year into the brand
building through advertising in their foreign destinations and also in
significant sports sponsorships,” according
to Lohmann et al. Through its partnerships with top clubs like
Arsenal FC and Real Madrid, Emirates gains valuable exposure to a global
audience, ingraining Dubai into the minds of millions of sports enthusiasts
worldwide. The airline’s—and by extension the nation’s—association with
prestigious football clubs amplifies its brand, fostering positive perceptions and
generating goodwill towards Dubai and the UAE.
Furthermore, Emirates
Airlines has taken several measures to provide “accessible luxury” to
international travelers. On their flights, they offer high-quality dining
experiences, a wide selection of alcoholic beverages, and state-of-the-art
entertainment; in airports around the globe, the airline has lounges for its
first- and business-class travelers, as well as loyalty club members. Emirates
also offers various layover programs for travelers with long transit times. They
provide complimentary accommodation, meals, and visas to passengers with long
layovers, encouraging them to explore the city during their stay.
The Branding of Dubai:
Bigger, Better, Bolder
In addition to developing
its airport capabilities and hosting international events, Dubai has
proactively engaged in destination branding strategies to transform its global
image. The city has positioned itself as a prominent international hub that is
an exciting destination for business and tourism. Dubai has indoor attractions
such as Ski Dubai in the Mall of the Emirates, outdoor entertainment venues,
and cultural attractions such as the Museum of the Future.
With over 40 malls, Dubai
has also marketed itself as a major shopping and tourist destination. The city
has launched festivals such as Emirates Holidays, Dubai Shopping, and Dubai
Summer Surprises to encourage more spending in its retail stores. They have
also leveraged social media, highlighting the extravagant experiences of
celebrities such as international football players Lionel Messi, Christiano
Ronaldo, Paul Pogba, and Mohammed Salah who visit Dubai.
To advance its
destination-branding strategy, Dubai has emphasized an approach that advertises
the world’s “biggest” and “best” in every possible category. Examples of this
approach include the Burj Khalifa, the world’s tallest building; Dubai Mall,
the world’s largest shopping center; the Palm Fountain, the world’s largest
seawater fountain; and DXB, the world’s busiest airport by volume of
international travelers. Cornelia Zeineddine, a researcher for the Bucharest
Academy of Economic Studies, indicates that the destination branding strategy has
largely “cemented its brand of superlatives in estate and luxury tourism.”
Another compelling factor
that contributes to Dubai’s international appeal is its embrace of cultural
diversity and openness to foreign cultures. The country “began to forge and wield tolerance as a
geopolitical tool—in most cases used to support its soft power goals” in the
mid-2010s. In 2016, the UAE cabinet issued its National Tolerance Program, and
Abu Dhabi has followed this up by holding the first World Tolerance Summit in
2018 and declaring 2019 the Year of Tolerance in the UAE.
Dubai hopes to build on the
success of Expo when it hosts COP28 in December 2023. The conference will bring
together world leaders, climate change experts, and non-governmental
organizations to discuss environmental policy, offering the city and the
country an opportunity to strengthen its foreign relations and global
influence. This type of global connectivity would not be possible if Dubai had
not preemptively invested large sums in airports and related infrastructure.
The UAE has established
itself as a leading destination through the implementation of effective
destination branding and the development of world-class airports, airlines, and
transportation infrastructure. By embracing diverse cultures and promoting
tolerance, it has significantly amplified its global influence.
By strategically
prioritizing its aviation sector, Dubai has emerged as a global hub, appealing
to international travelers and business. Dubai’s reputation has been further
bolstered through the hosting of prestigious events such as Expo 2020 and the
upcoming COP28. These events allow the country’s leadership to build influence
through non-political means, and position the UAE, a relatively small country,
as a strong user of soft power.
Other cities and airlines
around the world are also striving to become major travel hubs. Competing
airports, such as Doha’s Hamad International Airport, and airlines, such as
Qatar Airways, as well as airlines from the Middle East, Europe, and Asia, are
all vying for a share of the aviation and tourism market. Overcapacity on
certain routes can lead to fare wars and reduced profitability. Thus, in order
to maintain its leading position and distinctiveness in comparison to regional
rivals, Dubai must consistently host larger and more prominent events. These
events not only bolster Dubai’s global visibility but also enhance its
competitiveness as a premier travel destination. By offering a diverse range of
world-class events, from international conferences and exhibitions to cultural
festivals and sporting spectacles, Dubai will ensure a dynamic and
ever-evolving appeal that draws both business and leisure.
BY: Dr. Kristian Alexander
#SOURCE: https://tinyurl.com/5ffz7kjs
©2024 Trends Research & Advisory, All Rights Reserved.