Dubai - Tourist boards from across the world arrived in Dubai in droves this week, focused on enticing more holidaymakers from the cash-rich Gulf as global travel suffers at the hands of the financial crisis.
But they touched down for the Middle East's biggest tourism exhibition at a time when Gulf states are suffering an economic slump of their own that has seen billions of dollars worth of projects cancelled, thousands lose their jobs and consumer confidence slump to record lows.
Exhibitor numbers and floor space at Arabian Travel Market (ATM), which runs from May 5-8, were down on 2008, with exhibitors slipping 5.7 percent and floor space tumbling 23.2 percent as marketing budgets are slashed amid the crisis.
Organisers took heart that the fall was not steeper, portraying the figures as a sign of how the industry was coming together to find solutions to the economic woes.
"In the current financial climate, we are seeing that the number one shows in their respective fields are actively supported as the industry seeks out solutions to facilitate recovery," Mark Walsh, group exhibitions director at Reed Travel Exhibitions, said in a statement.
Exhibitors were in bullish mood, with major airlines and hotel brands pressing ahead with expansion plans in spite of gloomy forecasts by analysts.
Qatar Airways, Etihad and Emirates all said they were still on course to hit full year targets.
"In 2009 while people are shrinking, parking airplanes, reducing frequencies and networks, we are doing exactly the opposite," Qatar Airways CEO Akbar al-Baker told reporters, adding the airline saw 23 percent growth in the first quarter.
Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum said the airline was sticking to its order book and expects to post a profit in its financial year.
The Middle East was the only region to register positive passenger growth in March, up 4.7 percent compared to a global drop of 11.1 percent compared to a year ago, according to the International Air Transport Association (IATA).
But IATA said that growth was cancelled out by a 13.1 percent surge in capacity, eating in to airlines' profit margins. Middle East passenger load factors, a measure of how full an aircraft is, averaged 69.7 percent for the month, the second lowest in the world.
Deloitte said on Saturday hotel occupancy in the Middle East fell 9 percent in the first quarter and revenue per available room, or RevPAR, dropped 12 percent as the sector struggles amid the tourism slump.
A key theme of the show is value for money as cash-strapped holidaymakers tighten their purse strings, with hotels saying they are slashing room rates while offering added extras and tourism boards launching campaigns highlighting what countries have to offer the cost-conscious consumer.
"Quality is the key in terms of what people are looking for, and if you can get quality with value for money then that is the killer combination," said Helen McLoughlin, regional image and international marketing manager for One North East, the regional development agency covering northeast England.
