Dubai ups ante with $1.5B hotel on palm island
Adam Schreck and Barbara Surk, Associated Press 22 Sep 08;
DUBAI, United Arab Emirates (AP) — It's the latest word in Persian Gulf excess: a $1.5 billion resort boasting a $25,000-a-night suite and dolphins flown in from the South Pacific — all atop an island built in the shape of a palm tree.
Environmentalists have long criticized both Palm Jumeirah island and some of the features of the Atlantis hotel, set to open Wednesday. And analysts wonder if global financial turmoil will crimp Dubai's big hopes for tourists.
Dubai is not blinking. The 113-acre resort on the artificial island off the coast is among the city-state's biggest bets that tourism can help sustain its economy once regional oil profits stop flowing.
"You don't build a billion-and-a-half dollar project just anywhere in the world," said Alan Leibman, president and managing director of Kerzner International, the hotel operator that teamed with Dubai developer Nakheel on the resort.
With its own oil reserves running dry, Dubai hopes to woo those eager to make money and those who know how to spend it — even as much of the global economy sours.
For years, the emirate — one of seven semi-independent states that make up the United Arab Emirates — has been feverishly building skyscrapers and luxury hotels.
A key piece of the strategy has been to cultivate an image in the West as a sun-kissed tourist destination despite its intense summer heat, conservative Muslim society and dearth of historic sites.
Among the daring projects are an indoor ski slope, the as-yet-incomplete world's tallest skyscraper and a growing archipelago of man-made islands such as Palm Jumeirah — the smallest of three such projects planned.
Much of the focus at the Atlantis, modeled on a sister resort in the Bahamas, is on ocean-themed family entertainment. The resort has a giant, open-air tank with 65,000 fish, stingrays and other sea creatures and a dolphinarium with more than two dozen bottlenose dolphins flown in from the Solomon Islands.
The hotel's top floor aims squarely at the ultra-wealthy. A three-bedroom, three-bathroom suite complete with gold-leaf, 18-seat dining table is on offer for $25,000 a night.
Environmental groups and some people in the Solomons protested the sale of the dolphins to the resort as well as the 30-hour plane flight to get them to Dubai.
Dubai's development has long been criticized by environmental activists, who say the construction of artificial islands hurts coral reefs and even shifts water currents. They also point to growing water and electricity consumption.
Developers seem undaunted. For the moment, the Atlantis shares the island only with rows of high-end houses and construction sites. But other international names are set to move in.
Donald Trump plans a hotel straddling the center of the tree-shaped island's "palm," and the storied QE2 ocean liner will become a hotel and a tourist attraction docked alongside its "trunk." An 1,800-seat theater nearby will house a permanent Cirque du Soleil show beginning in summer 2011.
"Palm Jumeirah in and of itself will become one of Dubai's major tourist attractions," said Joe Cita, chief executive of Nakheel's hotel division.
Boosting the number of attractions on the island will not only entice more visitors, but also persuade them to spend more time and money in the city, he said.
By 2010, Dubai aims to attract 10 million hotel visitors annually, up from about 7 million in 2007. Atlantis alone will increase the city's hotel capacity by 3 percent.
So far, demand appears strong. The Middle East had the highest hotel occupancy rates in the world during the first half of the year, with Dubai leading the region at 85.3 percent, according to professional services firm Deloitte Touche Tohmatsu.
Dubai also had the highest room rates in the region, although revenue growth is slowing, Deloitte noted.
Atlantis' backers are optimistic they can fill its 1,539 rooms despite the economic uncertainty wracking some of the world's richest economies. Their focus is on well-heeled travelers from Europe, Russia, Asia and elsewhere in the Middle East.
"People will still take family holidays," Leibman said. "Dubai is still good value when you're paying in pounds, (or) you're paying in euros."
Nakheel, the developer, and Kerzner, the hotel operator, are both privately held companies and do not release sales data. Leibman said demand from tour groups looks strong well into the first part of next year.
Yet Marios Maratheftis, head of regional research for the Middle East, North Africa and Pakistan at Standard Chartered Bank in Dubai, said there is "good reason" to be concerned that global financial problems could hit Dubai's tourism industry. Nevertheless, he said, the city's long-term outlook remains positive.
Kerzner has grown increasingly close to Dubai in recent years. In 2006, the company took itself private in a $3.8 billion deal partially bankrolled by a division of Nakheel's state-owned parent, Dubai World. Nakheel retains a large stake in the company.
Nakheel's hotel division has expanded rapidly. The company's holdings include New York's Mandarin Oriental, the Fontainebleau in Miami Beach, and the W Hotel in Washington.
Its parent also owns a minority stake in MGM Mirage Inc. and is teaming with that casino operator and Kerzner to build a multibillion-dollar casino on the Las Vegas Strip.
But don't expect to find roulette wheels at Dubai's Atlantis. Islamic prohibitions against gambling ensure casinos remain off limits.
Grand Aquatic Openings in Dubai
Sara-Lise Haith, Deeper Blue 24 Sep 08;
Dubai Aquarium & Discovery Centre will unveil the marvels of the ocean floor to the people of Dubai with the opening of The Dubai Mall. Featuring the world's largest viewing panel and pronounced a spectacular display of some of the world's most intriguing marine animals. The flagship development of Emaar Malls Group, The Dubai Mall is one of the world's largest shopping, lifestyle and entertainment destinations featuring a host of world-class leisure attractions.
The Aquarium will feature the world’s largest viewing panel with 270-degree walk through tunnel; one of the world’s largest indoor Aquariums
The Discovery Centre offers interactive, educational centre
More than 33,000 aquatic animals; representing 85 marine species
Features the single largest collection of sharks; over 400 sharks and rays combined
Free viewing; Dubai Aquarium a significant value-add for mall visitors
Dubai Aquarium & Discovery Centre is one of the eagerly anticipated opening day attractions and is expected to draw in residents, tourists and marine enthusiasts from around the world.
With the main tank measuring 50m long x 17m wide x 11m high, and the world’s largest viewing panel measuring 32.8m long x 8.3m high, Dubai Aquarium & Discovery Centre will be a spectacular showcase of over 33,000 marine animals, representing over 85 different species. Shark and ray-watching will quickly become a favourite leisure pursuit as Dubai Aquarium & Discovery Centre feature the world’s single largest school of sharks including 45 sand tiger sharks, 45 grey reef sharks and up to 30 spotted eagle rays. In total, there will be over 400 sharks and rays to provide for an adrenaline-fueled visual experience.
Also today in Dubai was the official opening of The Palm Atlantis, described as a magnificent, oceanic tribute to a mythological age. In spite of the recent fire to a rooftop shortly before opening, the famous resort has opened its doors today as planned. The Palm Atlantis sports the much controversial Dolphin Bay, which is a four-and-a-half hectare lush tropical setting modelled on their natural habitat , described as "home for the dolphins at Atlantis” The dolphins were bought in the Solomon Islands and brought to the UAE. There are three vast lagoons where visitors can meet these dolphins through a choice of interactions.
The Aquarium, which holds a recently captured whale shark from the waters of the UAE, is said to hold some 65,000 marine animals, including sharks, eels, rays, piranhas, as well as multitudes of exotic fish. A local Dubai newspaper reports that the captured whale shark will "eventually be tagged and released". Atlantis announced the capture of the juvenile whale shark recently which was found in shallow waters, “fatigued and disorientated”. Whale Sharks are protected by CITES (Convention for the International Trade of Endangered Species) and apparently the hotel was urged to release the animal.
It is unknown how long Atlantis plan to keep the whale shark for.
Read more!