Maurice Flanagan CBE

1
Maurice Flanagan CBE

• Vice Chairman and Group President
• Emirates Group

2
World Travel and Tourism Council A Case
studyBalancing Dubais developments
Emirates Al Maha Desert Resort Sustainable,
conservation-based tourism in Dubai
3
Overview

• A summary of Al Mahas development and Wildlife
  conservation in Dubai
• Dubais development and tourism growth
• Sustainable development in Dubai
• The Dubai Desert Conservation Reserve
• Map of the Emirate of Dubai
• Management of The Dubai Desert Conservation
  Reserve
• Implementing international standards
• High level perspectives on conservation
  management
• The costs of conservation
• The role of partnerships in Dubai Desert
  Conservation Reserve
• Al Maha Desert Resort a summary of the resort
  and its activities

4
Al Maha Desert Resort
5
Dubais development

• Regional centre for
• Trade,
• Manufacturing
• IT
• Construction
• Tourism
• Petro-industry makes up only 9.5 of GDP
• All government owned businesses (such as
  Emirates) are subsidy free and financially
  self-sufficient

6
Dubais Tourism
Hotel Establishment Guests (1991-2002)
7
Emirates Fleet Transition 1987- 2012
Current 51 aircraft
Year 2012 125 aircraft
140
120
A380-800
100
80
A340-600
A340-500
60
B777-300ER
40
B777-200
20
A330-200
A 310 / 300
0
1990
1992
1996
1998
2000
2003
2004
2005
2008
2010
2011
2012
1987
1988
1989
1991
1993
1994
1995
1997
1999
2001
2006
2007
2009
8

• Arabian Adventures

Visitor numbers 1990-2003
Increase/Decrease
25
27
-14
31
Tourist nos.
25
18
35
37
51
94
76
153
Financial Year
9
Arabian Adventures Desert Safari
10
Dubai City
Vigorous growth and Infrastructure development
1980s
2002
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Governments have become more aware of the
financial and social costs associated with
reparations to disturbed environment and
destruction to natural habitats, and high profile
environmental disasters have led both governments
and corporations rightfully being held
accountable to the public for their negligence.
12
The Desert - A Tourist Amenity
13
Al Maha Desert Resort
14
Dubais Tourism
Hotel visitor numbers (2001-2010)
15
2010 Annual Desert-safari visitors

• Passengers
• 800,000 / year
• Vehicles
• 100,000 / year

16
The Dubai Desert Conservation Reserve

• Proposals made to the government in 2001 were
  adopted in full.
• Recommended Dubai government departments
  appointed Board representatives, under the
  Chairmanship of H.H. Sheikh Ahmed bin Saeed
  Al-Maktoum.
• Dubai Conservation Board, and the Dubai Desert
  Conservation Reserve is recognised and registered.

17
The Dubai Desert Conservation Reserve

• Land area recommended as a reserve was
  immediately proclaimed by the Crown Prince of
  Dubai, H.H. Sheikh Mohammed bin Rashid Al-Maktoum
• Land area makes up 4.74 of Dubais total land
  area and is 227 square kilometers in extent
• The Government of Dubai set aside 7 Million USD
  to complete the development of securing
  infrastructure for the Desert Reserve

18
Wildlife and Desert Sanctuary Protection
Dubai 2002
Partners

• Government
• Dubai Municipality
• Utility companies
• DTCM
• Al Maha
• Tour Operators

Sponsor
Emirates Airlines
Al Maha
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Emirates Conservation Sponsorship
Al Maha 2003
Emirates sponsorship

• AED 10 Million over 5 years for capital
  expenses relating to wildlife protection and
  conservation infrastructure

Dubai Desert Conservation Reserve
Al Maha - Management

• Operational management, wildlife healthcare
  and habitat projection, research and security

20
The Dubai Desert Conservation Reserve
Segmentation of land utilisation
4. Medium impact tourism volumes
Day-visitor safaris area
3. Low impact resort activity area
2. Research and habitat management areas
1. Exclusion Zones
21
Conservation management
High level perspective
High value commercial investment
Vacant
quality location
Enhanced product
Luxury Business practice
Conservation funding improvements
Financial gains
1. Stable business
Increased value of location
2. Destination attraction
3. Sustainable values
22
Conservation Based Tourism
Revenue
Guest Visitor
(resort)
1. Operations Costs
(resort)
2. Management Costs
(resort)
3. Grounds and external areas
(staff housing/benefits)
4. Employer contributions
5. Cost of Conservation Management
Govt provides tax concessions, and tax burden is
of conservation is removed
7. Tourism taxes
Profit of total Operation
23
The Dubai Desert Conservation Reserve
The role of Partnerships
H.H. Sheikh Ahmed bin Saeed Al-Maktoum
1. Reserve Board
3. Tourism Operators
2. Dubai Government

• Safaris

• Funding of utilities, services and initial
  set-up charges

• Resorts

4. Sponsorship Emirates
6. Reserve Operations

• Security

• Visitor fees/permits

5. Conservation infrastructure, manpower and
conservation funding

• Research and education

Organisation of the DDCR Board
24
Al Maha Desert Resort

• Summary of the resort and its activities

Key Performance indicators

• Projected cum. cashflow over 20 years
• USD 57.5 Million

• Payback
• 10 years

25
Al Maha Desert Resort

• Staff and management
• 3 staff for each room (total 30 suites)
• Additional management and staff allocated for
  environmental work
• Multilingual staff, with over 14 major languages
  spoken
• Revenue per employee US 48K/annum
• USD 10 Million (current upgrade and expansion)

26
Al Maha Desert Resort
Market Information

• Guests 38,0000 since April 1999
• 66 International guests
• 34 Domestic and Corporate guests

• 60 of guest travel First or Business Class

• Distribution Channel
• 60 International Tour Operators
• 40 Direct bookings

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Al Maha Desert Resort

• Average rate
• USD 940 per night

• Average length of stay
• 2.6 nights
• 38 of guests are repeat or directly referred,
  with an average of 4.5 nights stay

• Guest survey
• Leading Hotels of the world guest satisfaction
  rating -92.3
• Top 10 member resort in the world

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Al Maha Desert Resort
Traditional values in design and operations
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Unique Traditional Guest Activities
Tailored to individual needs
30
Conservation of wildlife and desert habitat
31
Award-wining Hospitality
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