‘We need to look at our business models’: ‘We have to think bigger’
By Ayesha Rascoe / Staff Photographer February 14, 2019 10:37AM / Dubai (AP) A global luxury magazine executive says there is a growing fear that the Dubai Luxury Hotel project is not sustainable.
Hassan Al-Ali, chief executive of luxury hotel company Al-Thawra, says the hotel will never be profitable and it’s unclear if it will ever reach its promised destination.
But he says Dubai’s future could be in luxury resorts in Africa, Asia and the Middle East, as well as in hotels in China.
Al-Ali says the industry has been struggling for decades to adapt to a changing landscape and that the hotel’s planned development of Dubai’s Red Crescent city centre is the latest example.
He says the hotels project is a continuation of the same mistakes that have caused hotels and other developments to fail in the past, and the Dubai hotel project is just one of many.
He also said the company plans to expand its operations to the Gulf of Aden.
Dubai’s Red Cross has already said it will help with the rebuilding effort.
Dubailand, a member of the World Bank Group, has also announced a $500 million loan guarantee for a $2.5 billion hotel and development project in Dubai.
The project, known as Al-Madinah, is being developed as part of the $4.7 billion World Tourism Infrastructure project, with the aim of creating a $200 billion economy by 2030.
It will create 250,000 jobs and boost the local economy.
But Al- Ali says the project is far from meeting the ambitious targets and that he is concerned that there may be too much government involvement.
Al Ali says Dubai is a leader in developing tourism, but there is also a need to diversify the city’s economy.
He says Dubai will be better off if it takes a different path, and focuses on creating jobs.