Impact of Covid-19 on Tourism and Hospitality Industry of UAE

Abstract

The tourism sector in the United Arab Emirates (UAE) is estimated to have contributed 11.5% to GDP in 2019. More than 2.3 million tourists in 2019 travelled to Dubai for work, up 2 percent from the previous year. Today's meetings, incentives, conferences, and exhibitions (MICE) industry promotes the considerate utilization of historical, cultural, and natural recreational resources and contributes significantly to economic diversification. Before the spread of COVID-19, the United Arab Emirates' MICE industry was unrivalled worldwide. Because of severe quarantine precautions, most places around the world have enacted travel restrictions relating to COVID-19 until May 2020. Like in every other country, the MICE industry in the UAE was negatively impacted by the global coronavirus outbreak. There is a lack of information about the local and global effects of COVID-19 on the MICE industry and the survival strategies for MICE firms, despite the fact that its effects have been researched extensively by various researchers in the UAE. This research aimed to analyze how COVID-19 will affect the MICE industry worldwide and in the United Arab Emirates so that local firms can better prepare themselves for the future. According to the research, the United Arab Emirates' (UAE) travel restrictions and border closures have had a devastating effect on the MICE industry. There have been significant financial losses at hotels, Emirati Airlines, and other businesses dependent on the tourism industry. Eighty-two percent of the total was due to a decrease in regularly scheduled departure flights. The study's multivariate analysis found that the 5P promotional strategy and an outsourced method were the greatest choices for assuring the survival and revitalization of MICE firms. Findings from this study can be used by researchers and MICE organizations to develop strategies for resolving the COVID conundrum and increasing the competitive advantage of MICE firms in particular and the industry at large.