Sustainable Destination Branding and Marketing: Strategies for Tourism Development

By Anukrati Sharma, Azizul Hassan, Andy Heyes and 34 more

Destination branding and marketing form the backbone of tourism industry growth, but it is increasingly important that the strategies employed consider and promote sustainable solutions. This book provides a comprehensive set of tools and techniques for branding and marketing for sustainable tourism development. It blends tourism and marketing strategies with practical, innovative information technology solutions and a psychological perspective, providing illustrative case studies and examples to aid understanding. Addressing opportunities and challenges across the field, it also reviews how different types of tourism such as community based, accessible, film, agricultural and cultural-heritage tourism entail unique issues for development.

Competition between destinations has led to a real need for different strategies in order to differentiate the tourism product. This book:
- Uniquely covers both marketing and branding of a destination from a sustainability perspective;
- Considers the role of emotions and experiences when advertising a destination;
- Brings together a set of global authors to provide a varied and universally applicable approach to the subject.

A thought-provoking read for anyone interested in questions of sustainability in destinations, this book provides an invaluable resource for researchers of tourism, marketing and international development studies as well as destination managers.

• Language: English
• Publisher: CAB International
• Release date: Dec 20, 2019
• ISBN: 9781786394286

Book preview

About the Editors

Anukrati Sharma

Associate Professor

Faculty of Commerce and Management

University of Kota, Rajasthan, India

Anukrati Sharma is currently Associate Professor in the Faculty of Commerce and Management, University of Kota, Kota, Rajasthan, India. In 2015, she got a Research Award from the UGC, New Delhi, for a project entitled ‘Analysis of the Status of Tourism in Hadoti and Shekhawati Region/Circuit (Rajasthan): Opportunities, Challenges,and Future Prospects’. Her doctorate is in Tourism Marketing from the University of Rajasthan. She has two postgraduate degree specialities – one in International Business (Masters of International Business) and another in Business Administration (Masters of Commerce). Books she has edited include: Maximizing Business Performance and Efficiency through Intelligent Systems (IGI Global), Sustainable Tourism Development Futuristic Approaches (Apple Academic Press, CRC Press, a Taylor & Francis Group, USA) and Tourism Events in Asia Marketing and Development (Advances in Events Research Series, Routledge, USA). A member of 17 professional bodies, she has presented papers in a number of national and international conferences. She has been invited for numerous talks, lectures and panel discussions by universities such as the University of Colombo, Sri Lanka; Halal Tourism Congress at Republic of Turkey Kastamonu University, Turkey; International Development Institute Pokhara, Nepal; Aligarh Muslim University, India, and by the Government of Rajasthan and FICCI to deliver a talk on Agri-Tourism. Dr Sharma takes training sessions at Rajasthan Police Academy, Jaipur on topics such as Change Management, Communication Skills, Gender Discrimination and Personality Development.

Juan Ignacio Pulido-Fernández

Associate Professor

Laboratory of Analysis and Innovation in Tourism (LAInnTUR)

University of Jaén, Jaén, Spain

Juan Ignacio Pulido-Fernández is Associate Professor in the Department of Economics and Head of the Laboratory of Analysis and Innovation in Tourism (LAInnTUR) at the University of Jaén in Spain. His main research interests focus on tourism economics, destination management, sustainability of tourism, tourism impacts, and social network analysis.

Azizul Hassan

Tourism Consultants Network, Tourism Society, London, UK

Azizul Hassan is a member of the Tourism Consultants Network of the UK Tourism Society. Hassan earned his PhD from Cardiff Metropolitan University, UK. His main areas of research are technology-supported marketing in tourism; innovative marketing dynamics; destination branding in tourism; cultural heritage tourism; heritage interpretation; and sustainable management/marketing alternatives for cultural heritage industries. He is a regular reviewer for Tourism Analysis, International Journal of Human Resource Management, International Journal of Ecotourism, eReview of Tourism Research (eRTR) and International Interdisciplinary Business-Economics Advancement Journal.

Contributors

Serap Akdu, Gümüşhane University, Gümüşhane, Turkey

Uğur Akdu, Gümüşhane University, Gümüşhane, Turkey

Ericka Amorim, Tomar Polytechnic Institute, Tomar, Portugal

Nese Aydin, Canakkale Onsekiz Mart University, Canakkale, Turkey

İlke Başarangil, Kırklareli University, Kırklareli, Turkey

Gül Erkol Bayram, Sinop University, Sinop, Turkey

Hulisi Binbasioglu, Malatya Turgut Ozal University, Malatya, Turkey

Kemal Birdir, Mersin University, Mersin, Turkey

Sevda Sahilli Birdir, Mersin University, Mersin, Turkey

James Malitoni Chilembwe, Mzuzu University, Mzuzu, Malawi

Kevser Çınar, Necmettin Erbakan University, Karatay, Konya, Turkey

Ali Dalgic, Isparta University of Applied Sciences, Isparta, Turkey

Juan Ignacio Pulido-Fernández, University of Jaén, Jaén, Spain

Anshul Garg, Taylor’s University, Subang Jaya, Selangor, Malaysia

Hengky Sumisto Halim, Bina Darma University, Palembang, Indonesia; Research Center Prasetiya Mandiri, Palembang, Indonesia

Azizul Hassan, Tourism Consultants Network, Tourism Society, London, UK

Andy Heyes, Stenden Hotel Management School, Leeuwarden, The Netherlands

Azilah Kasim, Universiti Utara Malaysia, Sintok, Kedah, Malaysia

Maximiliano E. Korstanje, University of Palermo, Buenos Aires, Argentina

Jeetesh Kumar, Taylor’s University, Subang Jaya, Selangor, Malaysia

Lim Cha Ling, University Utara Malaysia, Sintok, Kedah, Malaysia

Elson Mankhomwa, Malawi Institute of Tourism, Blantyre, Malawi

Moustafa A. Mekawy, University of Sadat City, El-Sadat City, Egypt

Priyakrushna Mohanty, Pondicherry University, Puducherry, India

María-Eugenia Ruiz-Molina, University of Valencia, Valencia, Spain

José Alabau-Montoya, Commission of Historical Memory of Paiporta, Valencia, Spain

Prabha Ramseook-Munhurrun, University of Technology, La Tour Koenig, Pointe-aux-Sables, Moka, Mauritius

Victor Ronald Mweiwa, Malawi Institute of Tourism, Blantyre, Malawi

Sanjay Nadkarni, Emirates Academy of Hospitality Management, Dubai, United Arab Emirates

Perunjodi Naidoo, University of Technology, La Tour Koenig, Pointe-aux-Sables, Moka, Mauritius

Hemachandran Rajamanicam, Department of Tourism, University of Otago, Dunedin, New Zealand

Yaiza López-Sánchez, University of Jaén, Jaén, Spain

Hugues Séraphin, University of Winchester, Winchester, UK

Anukrati Sharma, University of Kota, Rajasthan, India

Vishnee Sowamber, LUX * Resorts & Hotels

Derya Toksoz, Mersin University, Mersin, Turkey

Krishnan Umachandran, Nelcast Limited, Alwarpet, Chennai, India

Daniel Weiss, Stichting for Eduagility, Amsterdam, The Netherlands

Foreword

Despite ongoing and prominent debates about overtourism, the optimisation of tourism, the role of destination management organisations and the role of the state in tourism, it is clear that sustainability is the most important topic to understand for scholars and professionals in our industry. Unless we find ways to make tourism more sustainable, the future of the global tourism industry, which accounts for more than 300 million jobs worldwide, is in doubt.

This edited collection makes an important contribution to this pressing topic by considering sustainability in the context of branding and marketing. This is an area that has hitherto been relatively neglected in the literature, which has tended to focus on the behaviours of tourists, or the impacts of tourism operations in destinations. In a market saturated by images and driven by intense international competition, it is vital that destinations and tourism businesses prioritise how to best promote themselves in a sustainable way, encouraging responsible tourist behaviour and aligning themselves with sustainable development in the minds of consumers.

The next generation of tourists are the most environmentally and socially conscious we have ever seen. The growth of global environmental protest movements and the development of citizen activism in the developed and developing economies, shows us that this new consciousness is an international phenomenon. The tourists of the near future will hold the tourism industry to increasingly high standards of sustainability. There are countless examples of tourism working as a force for good, creating jobs and preserving landscapes, but new approaches to branding and marketing are needed to communicate this effectively, across a range of new and evolving digital media.

Within this volume there is an excellent collection of best practice case studies, as well as methodological innovations and exciting stimuli for future research on tourism and sustainability. It is a truly international collection, with links to tourism in all of its diversity of forms.

Dr James Kennell, FTS, MA, PGDip, SFHEA

Principal Lecturer in Tourism

Department of Marketing, Events and Tourism,

University of Greenwich, UK

Preface

Nowadays, sustainability is not an option in the tourism industry, but a key tool to ensure competitiveness and the involvement of tourists in the responsible management of destinations. Consequently, we must know how to communicate sustainability in the tourism sector by taking care of the way of sharing its main goals, being credible and honest.

The tourism industry has changed significantly during the last decade. The increasing competitiveness among destinations to attract new visitors is generating the need to use different strategies in order to consolidate the destination image, which becomes a great challenge. This challenge is even greater when destination branding and marketing are linked to aspects related to sustainability and responsibility.

The general image of a destination can be transformed by adopting strategies and tactics of branding and marketing. In the current environment of growing competitiveness, the loyalty of clients and their potential as prescribers of destinations do not only depend on having an element that makes the destination stand out from the competition, but the exclusivity that must be felt by the clients and the reward of enjoying activities adapted to their needs.

This book aims to provide theoretical and practical content for academics, researchers, students, policy makers, destination managers and other stakeholders in the travel, tourism and hospitality industry. Through the presentation of cases and examples, the book provides a comprehensive set of tools and techniques for branding and marketing for sustainable tourism development.

Throughout the different chapters, the reader will find experiences on different aspects of sustainable destination branding and marketing, such as security, tourism policy, luxury image, information and communication technologies or tourist behaviour. Additionally, various tourist typologies, such as accessible tourism, rural tourism, food tourism, dark tourism and film tourism will be analysed.

Anukrati Sharma

University of Kota, Rajasthan, India

10 April 2019

1 Brand Dubai: Sustaining its Luxury Image

Andy Heyes¹* and Sanjay Nadkarni²

¹Stenden Hotel Management School, Leeuwarden, The Netherlands; ²Emirates Academy of Hospitality Management, Dubai, United Arab Emirates

* Corresponding author: [e-mail]

Introduction

The topic of sustainability has been heavily discussed over the past 30 years. While some may look at the topic through a ‘Re-new, Re-use, Recycle’ perspective, sustainability is in fact said to be seen through a three dimensional lens incorporating social, economic and environmental issues (Cavagnaro and Curiel, 2012). While some may see the sustainability topic to be one of no major concern within their lifetime, others have and are continuously looking to think more long term into the future, protesting and campaigning for global sustainable initiatives. Most notable calls from campaigners are for stakeholders to think logically, ethically and morally when it comes to the topic of sustainable development.

Definitions of sustainable development are likely to vary and can also be seen through individual interpretation. Nevertheless, sustainable development is defined by the Brundtland Commission 1987 as development that meets the needs of the present without compromising the ability and the needs of future generations. For Dubai, some could say its government is in fact looking not only at sustaining current development initiatives but also generating a better future for forthcoming generations through substantial investment in long-term strategies away from its depleting oil reserves. Vast amounts of investment into real estate, hospitality and tourism infrastructures has been evident over the past 30 years with the city’s constant development transforming the once sleepy fishing village of Dubai into a metropolis of luxury hospitality and tourism conveniences.

Further strategic initiatives such as the 2020 Dubai Expo have led for the need and the expansion/increase in capacity of Dubai International Airport, now considered to be the world’s busiest airport in terms of total passenger traffic. Dubai has capitalized on its global geographic location and is now considered to be one of the main hubs, if not the main hub, for all long-haul flights between Europe, Asia and Australasia.

When it comes to luxury hotels, guests to Dubai are not short of options. If anything, it could be argued there is, in fact, too much choice for guests, as the expansion and development of luxury hotels has continued to grow since the turn of the millennium. The introduction of luxury hotel brands into the Emirates, such as Four Seasons, Fairmont and Shangri La, let alone home-grown luxury hotel brands such as Jumeirah, has continued to grow, with many brands adding a Dubai hotel to their expanding portfolio. Most notable hotels to mention must surely be the Burj Al Arab, the world’s first hotel solely built on a human-made island, and the Armani Hotel situated within the Burj Khalifa, the tallest building in the world. Such monumental and iconic hotels, included in Dubai’s portfolio of luxury hotels, showcase the Emirates’ desire to separate itself from other destinations, by putting Dubai firmly on the map as the world’s most luxurious and extravagant tourist and hospitality destinations. The only problem, however, is that the term ‘luxury’ is, in the context of tourism and hospitality, a loose term, with no international standards or definition currently in existence that define a luxury hotel or destination (Melissen et al., 2015). ‘Luxury’ can be used freely by the suppliers themselves, and it is suggested that such self-classifications are predominantly used to position an establishment/destination within a strategic market against fellow competitors. Similarly, however, the temptation to expand is also common with luxury ‘brands’ as they look to grow within mass markets. It is this expansion, however, which, while probably economically rewarding in the short term, may in fact be damaging to the brand’s luxury image and reputation in the long term.

This chapter will look at the sustainable nature of the ‘Dubai Luxury Brand’ and its ever-expanding hospitality and tourism industries, raising arguments about its long-term sustainability as a luxury destination. Evidence and justification for such arguments will be based on a comprehensive review of known literature and a narrative/analysis of industry relevant data analysing the Dubai hotel and tourism markets. The story begins with a narrative looking at Dubai’s history and its ever-expanding hospitality and tourism markets.

Dubai: The Story So Far

In the contemporary context, ‘brand Dubai’ evokes images of bling, opulence and over-the-top excessive luxury, a cornucopia of sorts and a bustling oasis of economic activity, that has leveraged its geography to position itself as a trading hub long before oil was discovered in the region. Suffice to say, unlike many of its regional peers, Dubai is a vibrant, cosmopolitan metropolis strategically located in an otherwise unstable region.

Dubai’s case is anything but an example of overnight success. Since the 1900s, Dubai has been the principal trading port and entrepôt in the Persian Gulf region. The formation of the United Arab Emirates in 1971, comprising seven emirates of which Dubai is one, provided a conducive socio-political environment to accelerate economic growth, which, despite cyclical downturns, has been on an upward trajectory.

Dubai has several sectors that contribute to its economic growth, one of which is the travel and tourism industry. Its geographical location coupled with an effective branding strategy spearheaded by Emirates Airlines has significantly contributed to the Dubai growth story (DED, 2018). An estimate by The First Group (TFG, 2017) pegs the tourism sector’s contribution to Dubai’s total Gross Domestic Product (GDP) at 8.7%.

For a growing number of tourists, Dubai is known to be the go-to place to experience luxury. Given the diversity of its residents, an overwhelming majority of whom are expatriates from over 200 countries, as well as its visitors, the city constantly aims at providing the newest and most exciting entertainment options and business opportunities. International visitor spend in Dubai stood at US$31.3 billion in 2016, placing it in the top slot among peer destinations ranked in the Global Destination Cities Index (MasterCard, 2016), with London, a distant second with a spend of US$19.8 billion. The high visitor expenditure cements Dubai’s reputation as a luxury cornucopia. The ramping-up of infrastructure and addition of a slew of attractions in the run-up to the upcoming Expo 2020 points towards a surge in tourist volumes. Mega attractions in the pipeline include the Marsa Al Arab, which is planned as a mega tourist resort in the proximity of the iconic Burj Al Arab, IMG World of Legends theme park and a Formula One theme park. The Dubai Department of Tourism and Commerce Marketing (DTCM), which is the Regional Tourism Organisation for Dubai, has drawn up an ambitious ‘Tourism Vision for 2020’ plan aimed at drawing 20-million-plus tourists for Expo 2020, and the city seems to be on track to achieve this target. The first half of 2017 attracted over 8 million visitors, representing a 10.6% growth over the corresponding period in 2016 (DTCM, 2017). As Jauncey and Nadkarni (2014) have pointed out, Dubai’s bid document, ‘Connecting Minds, Creating the Future’, envisages the Expo 2020 event as creating new partnerships for sustainable growth on the back of seamless connectivity, state-of-the art logistics and world-class infrastructure. The aspect on sustainability, a key value proposition of Dubai’s Expo 2020 bid, deserves particular attention given its seeming incompatibility with luxury, the quality and quantity of which in Dubai entails copious consumption of resources. Researchers estimate that the hospitality segment contributes around 21% of tourism sector’s carbon footprint. The importance of understanding hospitality’s environmental impact and means of controlling it should therefore not be overlooked (Ali et al., 2016; de Grosbois et al., 2011). Against the backdrop of an accelerated thrust in developing logistics, infrastructure, connectivity and knowledge (LICK) economy, where does sustainability stand? Revisiting the caveats on the sustainability of the ‘Dubai model’ flagged by Bagaeen (2007), it is of interest to note that the doubts cast a decade ago have come unhinged as Dubai manages the fine balancing act of ‘sustainable LICK’ growth through a slew of policy initiatives encompassing green buildings, clean energy and environmental tourism (DED, 2018). The decision to look at the environmental sustainability model is familiar; the marketability of Dubai’s luxury sustainability model is, it seems, still under consideration. Figures and statistics recently released show how Dubai is preparing for even further growth, as well as highlighting the importance of the tourism and hospitality industry to the Emirates’ long-term longevity.

Hospitality and Tourism – The Luxury Supply

With targets to host more than 20 million visitors by 2020 ahead of the world Expo, plans are well underway to accommodate such numbers. The expansion of Dubai International Airport in 2016, now said to be the largest and busiest airport in regard to footfall in the world (Mohamed et al., 2018), can be regarded as the gateway from where the Western world meets the East, with many long-haul flights landing at DXB International Airport before commencing the next leg of their journey. For those touching down and staying in Dubai, the availability of hotels and accommodation sources makes for interesting reading. Visitors wanting a piece of the luxury lifestyle are far from short of options when it comes to luxury accommodation, with even more luxury hotels set to open in the near future.

A trend analysis of hotel room capacity in chain hotels factored with respect to hotel class reveals the overwhelming growth of luxury and upper upscale segments in relation to the rest. The data, sourced from Smith Travel Research (STR), precludes independent hotels. As illustrated in Fig. 1.1, the year-on-year change in room’s capacity demonstrates a preponderance of growth at the luxury end of the spectrum. This trend is in line with the image of Dubai as a go-to luxury destination. The growth in capacity of rooms in economy hotels is almost flat. It can therefore be conjectured that, for investors, it is a matter of image and perceived higher returns on investments in luxury assets which results in such lopsided trends. The pipeline data shown in Table 1.1 further reinforces this conjecture, notwithstanding the authorities’ efforts to address this imbalance.

Pragmatic policies coupled with efficient implementation strategies on part of Dubai’s government have been the key growth drivers in the hospitality and tourism sector. The extent of investments accruing is a testimony to the investor optimism in the sector and in the larger Dubai growth story.

The growth in hotel capacity and tourism assets imposes a challenge on the industry stakeholders to ensure that social, economic and environmental sustainability measures are factored in line with government policies. The challenge is particularly stark at the luxury end of the spectrum, given its resource intensive nature to ensure guest comfort (Butler, 2008; Halbe and Parker, 2012). A study by Rosalind Jenkins and Karanikola (2014) revealed that under 50% of Dubai’s hotels with an average star rating of 4.2 reported on sustainability initiatives, which are managed under corporate social responsibility initiatives. As emerging regulatory guidelines push Dubai hotel operators into sustainability targets on a mandatory rather than a voluntary basis, sustainable luxury through the three-point lens of social, economic and environmental sustainability (Beckham and Voyer, 2014) will be the key growth driver in the run-up to Expo 2020 and beyond. Any increase in cost of operation on account of sustainability initiatives will be more than offset by guests’ growing proclivity to choose a hotel with green credentials (Anuwichanont et al., 2011; Cervellon and Shammas, 2013). Thus, the evolving scenario provides an opportunity for Dubai’s industry to position itself in a lead role in sustainable luxury. But is such a role possible? As will be discussed later in this chapter, the concept of luxury is contradictory to the sustainable statement, and given the media highlighting further development within the UAE’s hospitality and tourism industries, there is potentially no ending for what is to come beyond 2020.

Fig. 1.1. Year-on-year segmental growth. From: Smith Travel Research.

Looking Further Ahead – Further Development

Looking further ahead into the future, according to the WTTC (2016), it is estimated and planned that by 2027, a total of 31 million visitors will enter the United Arab Emirates for business or leisure travel, generating an estimated 74.6 billion AED to the country’s economy. It is estimated that 77.4% of this incoming revenue is likely to be international leisure spending from tourists vacationing in the UAE.

Table 1.1. Forthcoming hotel projects in Dubai.

From: Smith Travel Research.

In response to the expected increase in the number of tourists, Dubai’s hotel room inventory is witnessing an upswing with inventory in excess of 104,000 rooms in the first half of 2017 (DSC, 2017). The aim of the destination, as published by the Dubai Tourism and Commerce Marketing (DTCM), is to increase the hotel supply to between 140,000 to 160,000 rooms by the end of the year 2020. The hospitality industry, however, saw a decrease in the occupancy and Average Daily Rates (ADR) in the same period, attributed to the increase in available hotels within the destination. In the future, a higher supply over the demand rates in tourism will threaten Revenue per Available Room (RevPAR) figures for all hotels in Dubai (JLL, 2017).

Considering the forecasts mentioned, there is a high threat of new entrants into the destination for already established hotels, as the increase in supply will consequently condition the success and profitability of the existing hotel offerings. Unfortunately, this is something which may well happen.

Shift in Strategy – Increase in Budget Hotels and Airbnb

Dubai’s new strategic vision, which looks to shift their development direction into the mid-market hotels, can be said to support Dubai’s entrance into a new era by providing accommodation and services to the masses rather than the privileged few. The global phenomenon of Airbnb, which has swept across the world, is unfortunate for Dubai’s hotel industry.

Airbnb and similar economy platforms in global hotspots have received wide attention (e.g. Oskam and Boswijk, 2016; Hansen et al., 2016; Roblek et al., 2016). Dubai has not been immune to this phenomenon. That said, it has played out rather differently in Dubai when compared with the legal and regulatory push back from industry lobbies and city governments in London, New York and other major destinations (Einav et al., 2016). In a show of pragmatism, the DTCM signed an agreement with Airbnb that would allow the platform to provide vetted listings of apartments and villas ranging from budget to luxury, which would address potential security concerns, ensure compliance with local regulations and raise awareness of the positive impact that Airbnb would have on Dubai’s economy. The increasing popularity of Airbnb in Dubai is attested by the phenomenal growth of listings at 107% annually which have crossed 5000 rental apartments and B&Bs (Airdna, 2017).

With reference to Table 1.2, the interesting attribute about this growth story is that, in contrast with comparable destinations like London, New York and Singapore, the type of listings in Dubai are comparatively skewed at the extremes, with the global peak of the data set in ‘Entire Home’ category for Dubai and an average daily rate (ADR) of US$154, ranking below New York and London. Thus, a high proportion of entire homes and a comparatively lower ADR provides anecdotal evidence of ‘affordable’ luxury in the shared economy segment of Dubai’s accommodation sector.

With an overwhelmingly large expatriate population, home ownership rates among residents are low and, consequently, the demand for rental homes is high. This aspect attracts global investors to purchase real estate in Dubai. Some of this inventory has trickled down to the shared economy by way of Airbnb listings.

Table 1.2. Type of Airbnb listings.

From: Airdna, 2017.

This supply increases not only from Airbnb, but also from the growing hotel construction sector, resulting in a concern for a decreased ADR across the lodging industry. The Hotelier Express Summit 2016 Advisory Panel discusses this phenomenon, pointing out the increased emphasis on mid-sector development. The international hospitality sector is affected, as any other industry, by the global economic shift and, therefore, destinations such as luxury-oriented Dubai have developed their market towards more inexpensive products and services. Hilton, for example, is working on establishing more mid-segment brands in the region. In 2015, 44% of rooms introduced to the market were in the mid-range category. A study published by Jones Lang Salle (JLL, 2017) explained the hotel industry in Dubai has reached a saturation point in the luxury segment, and it is now being rivalled by the growth of lower-grade hotels. These new 3-star (or fewer) properties provide rooms with a more competitive price to attract a larger market segment.

The question that merits attention is whether this additional capacity will depress the hotels’ bottom lines, which are already under pressure on account of the growing pipeline; or will it complement the hotel supply by catering to hitherto untapped markets comprised of those seeking ‘affordable luxury’ in Dubai. The introduction of these properties, and the attractiveness to tap into larger segments, may well be seen to be an ideal business to capitalize on in growing revenue streams; nevertheless, it can also be argued that such a strategic move is in fact damaging and diluting the luxury appeal which Dubai has taken many years to build.

So far the narrative given in this chapter has given an understanding to current and future projections of the city’s growing hospitality and tourism scenes. While such statistics seem remarkable, it is, however, both the saturation of luxury hotels within the city along with further emphasis on the growing portfolios of budget hotels (as well as the introduction of Airbnb) which causes the authors of this chapter to raise questions behind the sustainable nature of Dubai’s luxury image.

While readers are likely to note that the authors continue to question the continuation of Dubai’s luxury appeal, what has not yet been discussed is the complexity of defining luxury and operating within such markets. Thus, it is now time to take a somewhat philosophical look at our story, bringing in evidence to justify the authors’ way of thinking.

What is Luxury?

To begin, we should first look at defining luxury. Amusingly, however, to come to a singular definition of the term can be difficult. Agreed, the authors of this chapter are not in a position to say whether Dubai is or is not a luxury destination – that is for the reader to decide. Some suggest Dubai is seen as a non-luxury destination, however this is based on individual interpretation. The phenomenon has been and continues to be a heavily researched topic in academic journals, as well as in leading industries including hospitality and retail. More recent studies have looked to produce a more theoretical understanding of the phenomenon (Cristini et al., 2016), with the aim to formulate a more scientific and theoretical understanding of the elusive concept.

As we begin to explore and read into the concept, common variables associated with the term are far from surprising. Stereotypical definitions suggest the importance of high quality, comfort, excessive in nature and a form of sophistication (Frank, 1999; Thomas, 2007; Bellaiche et al., 2010; Hoffman and Coste-Maniere, 2012).

Earlier writings are keen to highlight a social hierarchy, with luxury said to be only made available and accessible to those with high social status (most notably those linked to royalty) and thus high economic leverage. It is through this scenario that society has come to expect luxury to be of high expense. As is argued by Hennings et al. (2012, p. 31), ‘true luxury is only available to a few and desired by many’; that is to say, therefore, for anything deemed luxurious, there should be an element of exclusivity, justifying high prices. Further literature suggests that the integration and portrayal of exclusivity is of paramount importance to luxury companies, in that it is ‘rareness and exclusivity [that] are the abiding characteristics that often define and make luxury goods more desirable’ (Nwankwo et al., 2014, p. 738). Furthermore, the need for price is essential in maintaining a luxury categorization in today’s society, as quoted by Kapferer and Laurent (2015, p. 333), ‘price is central in the perception of luxury’, with expensiveness argued to be the first characteristic that consumers look for and associate with luxury (Dubois and Paternault, 1995).

Studies on the relationship between price, luxury and exclusivity show mixed findings on how the three concepts work simultaneously (Heyes and Lashley, 2017). Nevertheless, the effects of exclusiveness and rarity have a positive correlation on prices which are able to be charged; that is to say, the more exclusive and rare a commodity is, the more expensive it is likely to be and the fewer the people able to afford it.

Through the benefit of money, individuals have been, and are still to this day, able to buy expensive and attractive goods to showcase their wealth and, simultaneously, their success in life, usually through consuming conspicuously (Veblen, 1899). Luxury, then and now, is seen and used as a positive commodity to the eyes of the social masses denoting history, tradition and a pampering buying expense (Thomas, 2007).

Nevertheless, while most people may associate luxury with the tangible commodities which go along with the term, luxury is in fact a concept that is empowered by the intangible personalized nature of the individual. As Berry (1994) states, anything deemed luxurious must have a sense of desirability towards it; that is to say, an individual must have a genuine want and need for the item or service when consuming. Berry’s statements begin to unpack the luxury phenomenon further, highlighting a strong psychological attachment to luxury.

This personalized nature towards luxury and its definition therefore raises questions of where, how and why society has come to associate such things with the term. The most realistic reason for this can come from the thoughts of Twitchell (2002), relating to the marketing power and connotations associated with the word ‘luxury’ itself. The term luxury in this case can be seen to be mainly used for marketing initiatives, used to attract interest from consumers to entice greater chances of purchasing. In the case of Dubai, we should start to think who told us individually that Dubai was a luxury destination. Eventually, answers are likely to head back to third-party sales companies, no doubt! Through so-called psychological interest as mentioned by Berry (1994) by just using the term luxury, one could assume that the consumer becomes interested in experiencing and understanding what makes such a product or service different to any ‘normal’ alternative, while the constant personal need to feel different and grander than others entices individuals to invest their money in such goods and products.

We can assume, therefore, that luxury is a sociologically constructed concept which is marketed by the producer, deemed luxurious and thus ‘useful’ for the image and social status of the consumer.

Nevertheless, the accessibility of a product can quickly jeopardize a product or service’s luxury image. As popularity and the desire for growth continues, society’s interpretation of such a product or service is also likely to change over time. That is to say, the more common a commodity becomes, the more ‘normal’ it becomes, thus losing its luxury image. In hypothetical and business terms, therefore, as one luxury becomes normality, the next desired product or service needs to be in motion, suggesting that the luxury concept is a phenomenon which is seen by the eyes of the present day, but fuelled by the thoughts of the future (Gardetti and Giron, 2014). But why is there such a desire to expand and grow rapidly within a luxury market?

An answer to such a question is still relatively unknown. However, it could be assumed that such business leaders who make these decisions are not in line with knowledge or understanding about the luxury concept and the factors which have been mentioned in this chapter. It is only recently, however, that we can begin to argue that the expansive nature of the offerings of many businesses has come into force.

Falling Into the Trap: Masstige vs Exclusivity

While the turn of the millennium has been regularly regarded as the turn of the experience economy (Pine and Gilmore, 1999), researchers of luxury could also suggest it was the dawn of the new luxury era.

The increase in middle-class wealth and, thus, economic expenditure has also meant an increase in luxury consumption through the purchasing of goods and services (Yeoman and McMahon-Beattie, 2006; Hoffman and Coste-Maniere, 2012). The emergence of the so-called ‘masstige’ luxury strategy now looks to target middle-market consumers with reasonable and affordable prices to increase sales around the world (Truong et al., 2009), with brands still adamant about retaining their luxury brand image while mass-producing and selling to a greater target market. The dawn of this new luxury era, some could also argue, was powered by the increase in technological advancements, with luxury products being enhanced by new innovative and creative designs previously unseen in years gone by (Gardetti and Giron, 2014; Riley and Szivas, 2015). The future of luxury is still to be invented, perhaps, yet the need for brands to think innovatively, systematically and entrepreneurially is a must if they are ever going to compete in such a competitive market. Nevertheless, with the masstige markets now out there, the somewhat exclusive element of their offerings is slowly diluting. The question therefore remains – what is luxury in the 21st century? The answer has 7 billion different interpretations!

The Future of Dubai and Its Luxury Image

Away from the academic side of luxury, the biggest question arising from this chapter, and one which the authors have been discussing among themselves for the past two years remains: what is exclusive about Dubai? The authors have a concern that Dubai’s consistent over-exposure and plans for further development may benefit Dubai in the short term, but long term, its effects may well see the now luxury destination regarded as just another tourist haven.

Earlier in this chapter, we discussed Dubai’s growing forecasts of inbound tourists and hotel projections. Based on the review of the known literature surrounding the concept of luxury, as well as Dubai’s continuous development plans, it could be argued that Dubai is a ‘brand’, which is potentially falling into the trap of wanting more, and in effect losing its luxury categorization.

Evidence suggests that Dubai has indeed fallen into the masstige trap associated with the 21st-century luxury world; that its ever-expanding portfolio of hotels, its increase in a more affordable accommodation setting and its consistent development of opening its borders to millions of visitors is making brand Dubai more accessible than ever before. The negative effects of such are already being seen in the decrease in Revenue per Available Room (RevPAR), Occupancy Rates and Average Daily Rates (ADR) corresponding to the growth of the market, with premium prices now more difficult to charge than ever before. While some may well argue that this is as simple as the supply vs demand argument which has been circulating the industry for decades, the more critical thinkers among us may well see this as the beginning of the decline, as more competition and affordable prices take over what was once regarded a destination only fit for the wealthy. In the philosophical world where luxury exists, Dubai is bordering on the edge of risk and uncertainty – should Dubai be marketed as a luxury destination with high prices, or should prices be driven down and the region made accessible to greater numbers at the expense of damaging its carefully built reputation? The latter certainly seems to be the case.

Long gone are the days when only the rich and the famous could go to Dubai (a key element associated with luxury in the past); nowadays it has never been easier to visit and enter Dubai whether through transit or through long-term vacationing.

Therefore, the ultimate questions that remain are: Is Dubai’s vision and determination to grow damaging to its reputation as a luxury destination? Will the thought of visiting Dubai become a matter of normality rather than a rare treat? Will Dubai continue to attract the ultra-rich in a market filled with mid-scales and budget hotels? Fast-forward a decade or two and maybe we will have our answer!

Conclusion

There is no doubt that the Emirate of Dubai within the United Arab Emirates is a prime example of a destination which has gone through consistent strategic and political change over the past three decades. What was once a sleepy fishing port is now, arguably, a hub for international tourists.

As it set out its progression to become the optimal luxury tourist attraction, investing billions of dollars into real estate, social infrastructure and education and training to equip the region with the required resources to sustain such growth, Dubai has quickly catapulted itself into the 21st century with its innovative and entrepreneurial concepts.

Now, as the further construction of hotels and supporting tourism and leisure facilities continues ahead of the World Expo 2020 and its forecasted 20 million visitors (a far cry from that sleepy fishing village), Dubai’s exposure and accessibility to the world has never been greater. While Dubai’s vast investment and technological advancements can be seen to push the Emirate into the modern era, this chapter has looked to criticize the sustainability of constant investment towards Dubai’s efforts of marketing itself as an ultra-luxury destination.

Based on theoretical understanding and academic and industry research, still the illusive power of exclusiveness and the psychological effects it has to attract the rich and wealthy continue to play a part in the concept of luxury. Coupled with grand and over-the-top showmanship in pursuing initiatives such as the Burj Khalifia and the Burj Al Arab, Dubai has exploited its marketing potential to its best advantage, attracting millions of visitors from all over the world to witness the spectacular human-made creations. Yet with its continuous exposure, questions are being asked by the authors of this chapter: what is exclusive about Dubai? Will Dubai still be regarded as a luxury destination in the future? With the constant reinvention of luxury products and services, the next ultra-luxury destination may well be elsewhere. Is Dubai’s desire to grow in fact diluting its luxury appeal? Only time will tell.

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