It isn't every day that one gets to hear about an event as juggernaut as the Dubai Expo 2020 luring the interest of an estimated crowd capacity of 25 million visitors an estimation being the least optimistic one. With a handful of months left on the calendar, Dubai has started to aggressively prepare for what experts and critics are referring to as "the most awaited world expo in recent history." Dubai has always been a tourist-friendly location whether the purpose is for travel, ideation, business or just taking a stroll around the Palm Jumeirah or feasting your eyes over every luxury car that passes by quite often. However, to host an audience of more than 70% foreign tourists is a mammoth task even for the location that is considered as the almighty of the urban infrastructure and a market leader of the hospitality industry.
The Hospitality Industry Awestruck
Ever since the announcement of the Dubai Expo 2020 in November 2013, several companies in the Hospitality industry set their sights on October 2020, many of whom had their strategies and plans prepared to implement in their corporate bucket list. The industry is set to initiate new projects to accommodate the massive crowd expectancy and thus, creating a quarter million jobs for the purpose of logistics, infrastructure and hospitality for the duration of the Expo 2020. Multiple collaborations have been emerging including Al Habtoor Hotels being rebranded as Hilton and Key Managerial personnel of Emaar Group and Jumeirah Group presenting their views on the expectancy of heavy competition in the Dubai Market. Various news sources have interviewed many of these individuals and the statements that have been made in the past year 2018 has only contributed to quintessential inflation in the already existent hype for the event.
How will it Impact the Market?
Remember when you pack for a trip in a swift manner and stuff all the clothes in a small bag without taking into consideration the bag's capacity, and suddenly you are unable to close the bag now. Well, that can be related to the state of Dubai right now as you consume this article. Development on a highly unregulated scale, several players wanted to set up their branch of hotels all in the excuse for accommodating a massive crowd. Small and large brands in the key industries to invest in are diving into this pool of disarray assuming that it will mint unimaginable profits thereby satisfying their professional egos and personal greed. The fact that many critics have analysed is that this juncture could create an oversupply of hotels and though there may be a high demand during the six months of the Expo, the last time post the event might take these big and small brands into their decimation. Many analysts and veterans of the industry state that 2-3 years after the Expo will see a fall in demand for hospitality services in Dubai as consumers would have glazed and grazed over the multitude of attractions and would be expecting to explore new destinations probably in and around the other Gulf nations. This could add to an advantage for nearby middle-eastern locations which will churn out a little bit of their tourism marketing strategies and benefit from the massive burst out that Dubai is expected to experience past the wonders and glory days of the Expo 2020.
Benefits of the Expo 2020
Though the Expo 2020 might be on the receiving end of post-completion criticism, it isn't quite right to ignore the immense benefits that it brings in the form of Arabic Santa Claus, for the popular image of Dubai among its neighbouring emirates.
- The theme "Connecting Minds, Creating the Future" itself is attracting aspiring inventors, entrepreneurs and organisations to participate in the Expo to network and develop their ventures cohesively
- An immense rise in the tourism and hospitality sector
- New Investing Opportunities
- Dubai to be recognised as the first among many other nations to host an Expo putting extra focus on the UN Sustainability goals
- Quarter million jobs to be created for conducting the Expo
- Large scale economic growth
- Government plans of converting the expo site District 2020 (covering 438 Hectares) into a tech park such as the Dubai International Financial Centre for FinTech Companies later after the Expo 2020 climax stage. The government claims that the site is an epitome of cutting edge digital infrastructure
Backdrops of Expo 2020
The kryptonite of any industry is a market bubble which has been the reason for financial crises such as 2001 and 2008. This market bubble uprising is expected to victimise the real estate and hospitality industry of Dubai when there are extreme inflation and sales due to rise in demand but later there is an occurrence of a market crash when prices start to fall, and the demand reduces significantly.
The Expo 2020 is right around the corner and though there are a few predicted backdrops, it is quite clear that the benefits far outweigh the liabilities. If you are an aspiring entrepreneur who wishes to venture into the Dubai market to experience the wonders it has to offer then contact us to know more about the market and let us provide you with significant aid in your journey.