Live events are back on in Dubai, and the benefits are expected to trickle down through the tourism and hospitality sectors – and encourage vaccination.
Events were suspended last year to curb the spread of coronavirus, grounding the industry to a halt. But the time has come for Dubai to further fling open its doors, having previously opened to tourists and gradually loosened restrictions as vaccination rates rise and daily average case counts fall.
“We are extremely excited to be back in action following the announcement of restrictions rolling back, made by the UAE Government,” Paul Evans, co-founder and CEO of Solutions Leisure Group told Arabian Business.
On Monday, Dubai further relaxed Covid-19 restrictions, saying events and live entertainment would be allowed on a one-month trial period – which can be extended – given that performers and attendees are vaccinated.
Paul Evans, co-founder and CEO of Solutions Leisure Group
“Bringing entertainment back means bringing back the life and soul of our venues, and we cannot wait to celebrate,” Evans added.
Indoor events are now allowed to host 1,500 people, for outdoor, 2,500 people. While hotels are now permitted to operate at 100 percent capacity.
Bruno Trenchard, senior manager, hotels and hospitality, CBRE Middle East, told Arabian Business this is a “logical step” ahead of Expo 2020 Dubai, which will look to attract 25 million visits during the six-month event.
“Events are a very important pillar of the new Dubai 2040 Master Plan and it comes as no surprise that Dubai wants to secure a first mover advantage in that field,” he added.
Bruno Trenchard, senior manager, hotels and hospitality, CBRE Middle East
Under the plan, the land area used for hotels and tourist activities will increase by 134 percent, while the land used for commercial activities will increase to 168 square kilometres.
Dubai locked down early to stem the spread of coronavirus, and the emirate has benefitted from first-mover advantage on a number of fronts as recovery comes into full swing.
Welcoming back events is the next big step.
Scott Cairns, managing director, Creation Business Consultants
“While Dubai World Trade Centre recorded 51 ‘other events’ in 2019, there was a sharp drop to only 29 recorded in 2020, where attendees dropped by more than 62 percent. With this latest announcement, the events industry will be looking forward to a strong rebound in 2021,” Scott Cairns, managing director, Creation Business Consultants, told Arabian Business.
With events able to draw larger crowds compared to previous limits imposed, organisers stand a chance at hitting their break-even points, Cairns added.
John Lickrish, CEO of Flash Entertainment, echoed the sentiment.
“It’s impossible to deliver an event at 30 percent which is where we’re at right now. If you are thinking of bringing anyone who warrants an arena as far as ticket sales, you just can’t do it at 30 percent, you just can’t raise the capital to do it,” he said.
Lickrish said that as far as health and safety is concerned, their trial events have been a success.
“With the results that we’ve had from these trial events, we’ve done DJ events with full capacity, everyone vaccinated, en masse and we’ve had zero transmission so it’s good to see that we’re adopting some of those guidelines and as long as people adhere to that we should be ok to do events,” he said.
Trickle down
The trickle-down effect from this increased number of events is also expected to boost the Dubai economy, as attendees utilise transport and F&B outlets, reviving a much battered sector, Cairns said.
Travel and tourism account for over 15 percent of the UAE’s total GDP, and opening up the sector more fully, but safely, is integral to economic recovery.
“Dubai is one of the first cities to be able to welcome back concerts and large events, so the tourism industry should also benefit from this, as most countries are not able to implement similar measures yet,” Scott Livermore, ICAEW economic advisor and chief economist at Oxford Economics, told Arabian Business.
Scott Livermore, ICAEW economic advisor and chief economist at Oxford Economics
“In the near term, this will provide a boost to the hospitality industry as the sector can now move back towards capacity and we are likely to see an increased number of events for the domestic market. This is also potentially good marketing for Dubai and that will stand it in good stead to capitalise when global travel restriction ease more widely,” he added.
Further, according to Trenchard the move may encourage vaccination as only those who have received their Covid-19 shot are allowed to attend events and sporting events, while all performers must also be vaccinated.
He said: “One could call it positive reinforcement whereby citizens and residents are incentivised to get vaccinated in order to be allowed to access events or facilities that have a typically higher risk profile; this in turn should help the UAE to further improve vaccination rate across residents.”
The UAE has delivered around 11.5 million doses, with a vaccination rate of around 59 percent the population.
“This is a positive sign for the Dubai economy and a clear signal that domestically life is getting back to normal after the Covid panic,” Livermore said.
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