The World Expo is also set to have a positive impact on recruitment and employment, with the Department of Tourism and Commerce Marketing predicting around 275,000 job opportunities will be created from 2013 to 2021. This growth will be seen across various sectors, including retail, hospitality, aviation, construction and engineering.
With the 25 million people predicted to flock to the city during Dubai’s World Expo 2020, it is no surprise that this will have a major impact on the tourism sector. A large number of developments are already in the pipeline to help support this major boom in tourism, including Dubai’s dedicated World Expo site in Jebel Ali and mega developments such as Mohammed Bin Rashid City. Rail and road networks will also be added or fine tuned, while Dubai’s new Al Maktoum International aiport will help to further boost the city’s connectivity in preparation for the huge influx of visitors.
In 2012, Dubai’s hotels recorded a highly impressive $5.12 billion in revenues, marking a 17.9% year on year hike, while in the first three quarters of 2013, that figure topped $4.1 billion, representing a rise of 17%. With the World Expo in town, these figures are already shaping up to be even more lucrative.
It is estimated that around 55,000 – 60,000 new hotel rooms will come online between now and 2020 to support the boost in visitor numbers, according to Dubai based analysts, PKF The Consulting House. In the run up to Expo 2020, the government has also put in place plans to help diversify the range of hotel accommodation, which includes a new incentive to allow concessions for businesses setting up a 3 or 4 star hotel. These owners will be exempt from 10% municipality fees that currently apply to hotel room rates for each night of hotel occupancy.
The World Expo is renowned for having a major impact on its host cities. The last one in Shanghai brought with it a record 73 million people, beating the previous total of 64 million witnessed in Osaka in 1970.
The World Expo of 2010 helped transform Shanghai’s city centre from a heavy industrial area into a thriving cultural and commercial district. This particular Expo was the most expensive in the event’s history. While it cost $1.89 billion to run, Shanghai made a profit of more then $158 million. The next World Expo before Dubai’s turn takes place in Milan, Italy, in 2015 under the focus, “Feeding the Planet, Energy for Life”.