TOPIC: Impact of COVID-19 on the Tourism

Industry of U.A.E.

Submitted by

Aditya Kaul

AUD-7934

BBA GENERAL (finance)

S.E.M. 6

AMITY UNIVERSITY DUBAI

Batch No. (2017-2020)

1
 DECLARATION

DR Ashok Chopra

(Associate Professor Management & Commerce)

2
ACKNOWLEDGEMENT

3
ABSTRACT
United Arab Emirates is one of the nations in the world whose tourism industry is suffering due
to the COVID-19 pandemic. Hotels, restaurants, tourist destinations, as well as other areas that
are supported by the tourism industry, have been negatively affected. Some hotels have been
forced to shut down, whereas those still in operation have an occupancy rate that is below 10%.

In a bid to understand how severe the tourism industry of the U.A.E. has been affected;
researchers carried out a study. The study used a mixed-method approach. 70 participants
participated in the study. The 70 participants compromised of hotel and restaurant owners, hotel
managers, and employees in the U.A.E. tourism sector. The participants were asked 8 questions
that regarded the COVID-19 and how it affected their businesses and their employment status.

According to the data collected and the analysis, the tourism sector has been greatly affected by
the COVID-19 pandemic and this is information confirmed by hotel managers, hotel owners, and
employees in the diverse tourism industry. The majority believe that the effects of the pandemic
are negatively affecting the industry. The stay indoors and the travel restrictions have made it
impossible for both local and foreign tourists to tour the nation. The social distancing
instructions have also limited the hotels' and restaurants' business operations as they have to limit
the number of people that they can serve. In an attempt not to declare bankruptcy and salvage
their financial statuses, most organizations in the tourism industry have temporarily let go of
their workers.

Despite reducing the number of employees, most organizations foresee them closing down in a
month if the situation does not change. Most organizations believe that the government can
intervene and save their operations during the pandemic period. Out of the suggested programs,
most respondents suggested that cash waivers, employment programs, reduction of tariffs on
imported inputs are some of the best strategies that the U.A.E. government can implement to
give their organizations a fighting chance.

Table of Contents
4
Introduction......................................................................................................................................6

Travel and Tourism..........................................................................................................................7

Literature Review............................................................................................................................9

Research Methodology..................................................................................................................13

Research Objectives.......................................................................................................................14

Data Analysis and Interpretation...................................................................................................15

T-test analysis................................................................................................................................30

FINDINGS.....................................................................................................................................32

Conclusion.....................................................................................................................................33

References......................................................................................................................................34

ANNEXURE.................................................................................................................................35

5
 Introduction

In the United Arab Emirates, oil production and export are the significant sources of economic
stabilization. Tourism is second to oil and export. Tourism is the country's main non-oil revenue
stream. The U.A.E.'s tourism sector prospered, because of a massive construction boom and a
flourishing service sector in some of the world's luxury hotels, the expansion of the
manufacturing base. The recent pandemic caused the national economy turbulence because it not
only affected the production and export of oil but also hampered tourism. Some of the significant
impacts observed in the country include the sudden drop in domestic and external demand for
commodities and products, notably crude oil, the decrease in crude oil prices, the stoppage of
labour production. Also, foreign visitors have been urged to fly as local tourists to avoid the
spread of the disease as a result of the COVID-19 pandemic.

The W.T.C. has warned of the pandemic COVID-19, which could reduce worldwide 50 million
travel and tourism employees. After the outbreak is over, the industry will recover for up to 10
months. Today, tourism accounts for 10% of worldwide G.D.P. It's an essential part of the
U.A.E. economy. Travel and tourism studies are expected to add approximately “Dh312,4 billion

6
to the G.D.P. of the U.A.E. by 2027. The industry is part of the company backbone with its
workers. Based on current trends, unless government assistance is provided immediately by
companies in this industry, their chances of surviving the outbreak of coronavirus are slim, even
if they grew at a commendable rate before the eruption” (Hill, 2020).

The coronavirus outbreak poses risks for up to 50 million workers in the global transport and
tourism industries. Fortunately, while the virus was still in its infancy, the United Arab Emirates
began to implement social distancing measures. The nation registered more than 26,000
infections with 233 deaths as early as 21 May 20120. COVID 19 is going to worsen economic
splits in the U.S. because of its tens of thousands infected in the world and the loss of hundreds
of lives.

The impact is currently being felt, but in three months it will be felt most if there is no way to
resolve the pandemic. Tourists evaporated the situation, and a flight and a lock-down ban were
introduced. With the U.A.E. cancelled their Expo 2020 and Saudi Arabia, which did not permit
an annual haj pilgrimage, the U.A.E. lost hundreds of millions of dollars due to touristic activity.
This has been expected. Twenty-five million visitors were expected by the U.A.E. to attend the
Expo 2020 event in October 2020.

Travel and Tourism

“The U.A.E. has important revenues as air transport is home to Emirates, the world's largest
long-distance airline, and a hub for other major regional airline companies such as Etihad
Airways and Air Arabia. Air travel accounted for $19.4 billion or around 5 percent of UAE GDP
last year, according to a 2019 survey by the International Air Transportation Organization. This
figure is doubled by tourism”. More than 11% of U.A.E.'s G.D.P. was represented by the World
Travel and Tourism Council in 2018. When more flight controls fall into force, both carriers
would have to clean up. As international travel nearly surely will be severely disturbed until the
second quarter of 2020, this will be a key economic element in the U.A.E. Actions in Air Arabia
decreased in the period before they recovered slightly in the following days, down to 1.08 AED
during a Monday trade session. Currently, they are less than 30% by year.

7
Stopping Flights-One of the hundreds of related hotels confronted by related tension in Dubai,
where employments have fallen to 20%, has tourism accounted for more than 11% of G.D.P. and
offers funding to the shopping, transport and building sectors. After the world's pandemic hit, the
hotel took an unpaid leave of 300 employees and brought the United Arab Emirates to a closer
audience to its pool bar and beach club. Dubai is the 3rd largest town in the world with direct
international expenditure on tourism, with US$ 28 billion in 2019, the World Travel & Tourism
Council said. Last year, the government said, more than 16 million visitors visited the region.
Just before the U.A.E. halted all passenger flights, with the exception of evacuations, State
Emirates airline, which reported 862 million dirhams (234.70 million dollars) in earnings in the
Stop passenger flights in the first half of 2019. Dubai, the most fragile economy in the U.A.E.,
may be pushed into debt reduction through coronavirus travel curbs or receive support from
U.A.E. capital Abu Dhabi. Capital Economics puts Dubai's debt load at about 135 billion dollars
(125% of G.D.P.). In the global lending crisis that has struck Dubai's real estate market crash,
Abu Dhabi launched the second time last year a $10 billion loan to Dubai. In the U.A.E.
economy this is usually negative. In the first week of March, hotel occupancy rates in the U.A.E.,
a federal government of seven emirates, declined by 28.2% year on year, with income from the
analytics specialist STR falling by 43%. The spread of the disease puts at risk the EXPO 20
world trade fair in Dubai, which will host 20 million tourists from October. „ In a statement to
Reuters, Marriott International said that some of our properties in the U.A.E. have been
temporarily closed.

Chinese tourists, who until recently thronged the city’s main tourist attractions, are largely
absent. Shopping malls are much quieter in the city and taxi drivers complain about customer
absence. Hotels have lowered rates for support, with some reportedly requesting leave to reduce
costs in the downturn. Technically the outbreak has prompted the cancellation or postponement
of a host of other events in the U.A.E., from music festivals and business conferences to Art
Dubai, the Gulf’s most prominent art fair.

8
 Literature Review
“In order to carry out literary search, the researchers have implemented efficient literature search
techniques and strategies such as keyword and boolean operators' techniques together with
strategies such as the recent literature.” “The most effective method for literary quest is to use
keywords to scan the relevant literature. In few integral steps the literature search was carried
out: the formulation of questions, the definition of the key concepts and keywords, the selection
of databases, a search and evaluation of the search results, and finally selection of the most
relevant literature for the study and important study information.”

The question was broken up in several parts in order to find the main concepts of the research in
the keyword search. In order then to search the essential literature, the “keywords and their entire
synonyms and acronyms are used.”The keywords are U.A.E. and pandemic COVID-19. In order
to find the necessary literature, in addition to the keyword method, the boolean operator method
is also used. The key secondary details were gathered from Ebsco and other reliable online

9
repositories databases. After a thorough literature review, one article was identified that
represents U.A.E.’s tourism industry status in light of the COVID-19 pandemic.

“Dubai braces for a financial hit as coronavirus batter’s vital tourism”

In an article published in March 2020, the article looks at how Dubai and generally the U.A.E.‘s
tourism industry is affected by COVID-19. According to the article, tourism in Dubai accounts
for 11% of G.D.P. as well as supports the construction, the transport and retail sectors (Aziz &
Barbuscia 2020). Furthermore, the article quotes the World Travel & Tourism Council by stating
that Dubai is the third-largest city in the world in terms of attracting direct international tourism.
According to the report by the council, over 15 million tourists visited the city in 2019.

In a study of the city after the pandemic breaks out, Yaakoubi and Barbusia, the authors of the
article stated that most of the hotels in Dubai have closed and the occupancy rates have fallen to
only 10%. In a bid to counter the effects of the pandemic, some hotels have been reconfigured to
space out sitting arrangements. Furthermore, they sanitize all hotel employers in an attempt to
build confidence in potential customers. The authors of the article managed to capture the
response of a hotel manager that they interviewed. The hotel manager believes that the hotel
industry and extension of the tourism sector in Dubai will be greatly affected and that the effect
of the pandemic will last the whole year.

An analysis of the article reveals that Dubai, one of the seven cities of U.A.E. and the city that
depends on the most on tourism is hard hit by the effects of the pandemic.

“The Impact of Coronavirus on the U.A.E Economy”- Giles Coghlan

No matter how late this declaration might or might not have came into effect, at least this
warning raise will now encourage the governments to take the problem seriously and to intensify
their attempts to deter its spread.

It is also generally recognized that changing the outbreak curve correctly is our best chance to
hold the virus clear of crippling national healthcare systems. As more evidence on the

10
epidemiology of the epidemic appear, we are best able to cope with it and provide about the
victims.

These unknown past events slowly become information, which has a wide range of implications
for our interconnecting world economy in our efforts to suppress Covid-19. Many stocks have
already entered the bear market in correction mode. The effects on transport, trade, services and
influence on the Emirates will now be separated from that on the United Arab Emirates.

The U.S. is a tightly integrated, well-funded, technologically developed, and socially stable
society. This improves the likelihood of a dramatic action to slow the spread of Covid-19 at least.
It has been quick to disinfect Community room, thermal cameras are mounted, Shisha is banned,
significant events are cancelled, schools close, and hours are restricted. As we know, coordinated
protests are critical in various countries such as Singapore and Hong Kong for preventing the
virus from being spread.

The United States, Emirates host, the biggest airline in the world, and other major regional
carriers, like the airways Etihad and Air Arabia, are generated by air transportation as a
significant source of revenue. Air travel accounted for 19.3 billion dollars or about 5 per cent in
the 2019 International Air Transport Association study of G.D.P. of the U.A.E. When you even
add to tourism, this number more than doubles. Throughout 2018, the National Travel and
Tourism Committee paid for more than 11% of the US GDP.

Both airlines may have to face cancellations as new restrictions on flights become important.
With world transport almost definitely severely affected by the second quarter of 2020, that
would undoubtedly be an important aspect of the U.S. economy. Air Arabia shares declined to
below 1.08 AED during the trading session on Monday until they improved marginally in the
following days. Today, they are more than 30 years out to date.

“The positive thing is that the aircraft sector of the U.S.A. is definitely more positioned than that
in other countries to deal with the coming crisis. For eg, the 12-month quick trailing ratio of Air
Arabia (liquid assets separated by accumulated liabilities) currently stands at 1.24 (more
specifically, ratios below 1.1 are unwanted).”

11
“In comparison, Southwest Airlines, which is the world's biggest low-cost carrier, has a 12-
month trailing strong average of 0.61. The fast ratio of Air Arabia is therefore slightly higher
than the average of 0.29 for the aviation sector and should thus be much more prepared to handle
this impact.”

Research Methodology

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“The research implemented the mixed approaches methodology. It used both qualitative and
quantitative research methods. The researcher collected data through interviews and
questionnaires. “In terms of indicators, the evaluation aimed to draw on different types of
indicators (i.e., latest inputs, outputs, outcomes, impacts,) to reflect the key results in the
disease’s theory of change.” “Impact evaluations of (COVID-19) should ideally use the
indicators that were selected for monitoring performance throughout the disease implementation”
period, and how coronavirus pandemic has spread across the U.A.E. and the world in general.
The researcher employed and linked “data collection instruments, including surveys, for
assessing COVID-19-relevant Behavioral and Social Science (BSSR) domains for clinical or
population research where participants voluntarily gave their feedback.”

The researchers have examined COVID-19 associated behavioural improvements (working,

sleep, education, constructive study, family, and practice), and how tourism and travel have
influenced everyday behaviour and social experiences in the United African States (U.A.E.). The
impact of the COVID-19 pandemic on finance, creating or exacerbating financial difficulties
reduced both local and international tourists. Financial hardships Examined perceived
advantages; how pandemic interactions have generated some perceived gain, constructive
impact, and opposite. Efficient social support; the tourism sector has been influenced by reaching
and utilizing social services after a pandemic. Finally, the ability to manage and how perceived
stress management has affected the ability to implement abilities to manage pandemic stressors.
The scientist also looked into patterns for similar data in social networking sites and publishing
outlets.

70 participants participated in the study. The 70 participants compromised of hotel and restaurant
owners, hotel managers, and employees in the U.A.E. tourism sector. The participants were
asked 8 questions that regarded the COVID-19 and how it affected their businesses and how it
affected their businesses and their employees.

13
 Research Objectives

“The objective of this study is to measure the impact of the occurrence of Covid-19 on the
tourism industry in the United Arab Emirates.”

Data Analysis and Interpretation

What is the main sector of activity of the business? And what does it involve?

Agriculture

Mining and natural resources

Agri-food processing

14
 Non-food manufacturing
Retail and wholesale
Travel and transport
Accommodation and food services
Information technology
Finance
Other services, please specify:
Tourism
 
Data Interpretation
All respondents work in the Tourism industry
Is this establishment currently registered with or licensed by a national authority?
Yes, registered business
Freelancing/independent/consultant
No, unregistered business
Do not know

Yes, registered business 55

Freelancing/independent/consultant 5
No, unregistered business 0
Do not know 10

15
 Is this establishment currently registered with or
licensed by a national authority

10
Yes, registered business
5 Freelancing/independent/consul
tant
No, unregistered business
Do not know

55

Data Interpretation

Most respondents were certain that the organizations they worked for were registered business

From which types of customers do you generate the most income from?

Foreign tourists

local tourists

government activities/ conferences

Other services, please specify:

 

Foreign tourists 37
Local tourists 17
government activities/ conferences 10
Other services, please specify: 6

16
 Sources that generate the most income
6

10 Foreign tourists

Local tourists
37

17 government activities/ conferences

Other services, please specify:

Data Interpretation

Out of the customers that the respondents serve, they generate the most income from foreign
tourists and the local tourists.

What field of tourism does your company primary deal with/ services or products that you
offer?

sky diving
hotel and accommodation services
desert safari tours and activities
Site seeing services
merchandise selling
other
Sky diving 8
Hotel and accommodation services 22
Desert safari tours and activities 15
Site-seeing services 13
Merchandise selling 11

17
Other 1

Field of tourism represeneted by the respondents

1 8
11
Sky diving
Hotel and accomodation services
Desert safari tours and activities
13 22 site-seeing services
merchandise Selling
other

15

Data Interpretation

Most respondents were from the hotel and accommodation services and the desert safari tours
and activities fields of the tourism sector.

How many full-time employees does the business have?

0
1-4
5-19
20-99
100-249
250 and more
0 0
1-4 0
5-19 0
20-99 10

18
100-249 45
250 and more 15

How many full-time employees does the business

have

10
15
0
1-4
5-19
20-99
100-249
250 and more

45

Data Interpretation

Most of the respondents indicated that their businesses have between 100 to 249 employees in
their places of employment.

Have your business operations been affected by Coronavirus (COVID- 19) pandemic if yes?
How?

Not affected

Slightly affected

Moderately affected

Strongly affected

19
Example of effects:

Not affected 20
Slightly affected 10
Moderately affected 5
Strongly affected 35

20

Strongly
affected
35
Not affected

Slightly affected

Moderately
10 affected

Data Interpretation

The majority of the respondents have been greatly affected by the COVID-19 pandemic.

How has the coronavirus (COVID-19) pandemic affected the ability to offer services or sell
your products?

customers cannot access facility for services or products

business cannot open premises for service delivery or sell of products

20
 measures to protect the general public has hampered operations

delivery of products by local suppliers has been hampered

delivery of products by international suppliers has been hampered

employee’s health has been compromised

government has quarantined premises

the pandemic has not affected operations

The delivery of products by local suppliers 10
has been hampered
business cannot open premises for service 7
delivery or sell of products
The measures to protect the general public 3
implemented by the government has
hampered operations
The delivery of products by local suppliers 5
has been hampered
The delivery of products by international 15
suppliers has been hampered
Employees health has been compromised 20
The government has quarantined premises 5
The pandemic has not affected operations 5
The government has quarantined premises 5
The pandemic has not affected operations 5

The ability to offer services or sell your products

customers cannot access facility
5 10 for services or products
5 business cannot open premises
for service
3 delivery or sell of
7 products
measures to protect the general
public has hampered operations
delivery of products by local
suppliers has been hampered
delivery of products by
20suppliers has been
international
15 hampered
employees health has been
compromised
5 government has quarantined
premises
the pandemic has not affected
operations

21
Data Interpretation

Most of the respondents said that the measures to protect the general public implemented by the
government had hampered operations.

How has the coronavirus (COVID-19) pandemic affected your enterprise? (multi-select)

Temporary shutdown
Employee absences due to travel restrictions
Clients cannot pay for services or buy products
Reduced cash flows
clients cannot access services and products due to stay at home orders
Other, please specify:
 
Temporary shutdown 10
Employee absences due to travel restrictions 7
Clients cannot pay for services or buy products 3
Reduced cash flows 3
clients cannot access services and products due 2
to stay at home orders
Other, please specify: 5

Has the coronavirus (COVID-19) pandemic affected your

enterprise
Temporary shutdown
5
11
Employee absences due to travel
restrictions

8
Clients do not have the ability to pay
25 for services or buy products

Reduced cash flows

7

clients cannot access services and

products due to stay at home orders
14
Other, please specify:

Data Interpretation

22
Out of 70 respondents, most respondents claimed that the clients cannot access services and
products due to stay at home orders.

Have you adopted any of the following strategies to cope with the crisis? (multi-select)

Temporarily reduced employment

Laid-off employees
Loaned employees to other enterprises
Teleworking
Rescheduling of bank loans
Increased marketing efforts
Temporarily reduced employment 23
Laid-off employees 19
Loaned employees to other enterprises 1
Teleworking 1
Rescheduling of bank loans 9
Increase marketing efforts 17

Have you adopted any of the following strategies to cope with the
crisis

Temporarily reduced employment

17
23
Laid off employees

Loaned employees to other enterprises

9 Teleworking

1
1 Rescheduling of bank loans

19
Increased marketing efforts

Data Interpretation

23
Out of 70 participants, most respondents said that their businesses temporarily reduced
employment to avoid business losses

Based on the current trends, do you think there is a risk that your business will
permanently shut down because of this crisis, and if so, when is it likely this closure will
occur?

1 month or less

3 months
6 months or more
Business closure not envisaged
1 month or less 30
3 months 20
6 months or more 15
5

When could this closure occur?

5

15
1 month or less
30 3 months
6 months or more
Business closure not envisaged

20

Data Interpretation

Most of the respondents suggested that their businesses be closed within the month

Please select the top three government measures that you believe would be most helpful as
you cope with the COVID crisis.

Employment programs (e.g. temporary unemployment programs or social security waivers)

24
 Financial programs, such as low-interest credit line or credit guarantees
Tax waivers or temporary tax breaks
Reduction of tariffs on imported inputs
Rent subsidies
Cash transfers
Other services, please specify:
 
Employment programs (e.g. temporary 5
unemployment programs or social security
waivers)
Financial programs, such as low-interest credit 3
line or credit guarantees
Tax waivers or temporary tax breaks 10
Reduction of tariffs on imported inputs 15
Rent subsidies 5
Cash transfers 21
Other services, please specify: 13

Government Measures That Would Be Most Helpful As You Cope

With The COVID Crisis
5 Employment programs (e.g. temporary
11 3
unemployment programs or social security
waivers)

Financial programs, such10 as low interest

credit line or credit guarantees

Tax waivers or temporary tax breaks

21 Reduction of tariffs on imported inputs

Rent subsidies 15

Cash transfers
5
Other services, please specify:

Data Interpretation

25
Out of the suggested programs, most respondents suggested that cash waivers, employment
programs, reduction of tariffs on imported inputs, and other services like rent waivers would be
most helpful during the pandemic.

According to the data collected and the analysis, the tourism sector has been greatly affected by
the COVID-19 pandemic and this is information confirmed by hotel managers, hotel owners, and
employees in the diverse tourism industry. The majority believe that the effects of the pandemic
are negatively affecting the industry. The stay indoors and the travel restrictions have made it
impossible for both local and foreign tourists to tour the nation. The social distancing
instructions have also limited the hotels' and restaurants' business operations as they have to limit
the number of people that they can serve.

In an attempt not to declare bankruptcy and salvage their financial statuses, most organizations in
the tourism industry have temporarily let go of their workers. By so doing, the organizations
have reduced their wage bills. Despite reducing the number of employees, most organizations
foresee them closing down in a month if the situation does not change. Most organizations
believe that the government can intervene and save their operations during the pandemic period.
Out of the suggested programs, most respondents suggested that cash waivers, employment
programs, reduction of tariffs on imported inputs are some of the best strategies that the U.A.E.
government can implement to give their organizations a fighting chance.

Airlines planned for a 3.5% rise in the international seating capacity of 3,2% in 2020 and a 3.7%
increase in domestic seating capacity in comparison to 2019 before the outbreak. According to
the latest estimates, the capacity of passenger seats could fall by 32% from above to 59%
(international by 38%, 71%; domestic by 28%, 51%). This amount of capability will be 30% to
58% (internationally 36% to 70% and nationwide from 25% to 49%) below 2019. The U.S.
Central Bank reported a $27 billion in funding for banks as a boost for the economy, while Dubai
proposed special opportunities in the oil, banking , retail and tourism sectors for a total of $409
million. Specific governments have since started to supply their corporate associates and vendors
with service packages. The recent travel constraints placed to curb the outbreak, according to
Aljazeera, may present a major danger to the U.A.E. hospitality and tourism industry, which is
scheduled to host Expo 2020 in Dubai and draw 11 million visiters into the region. However,
such predictions are largely speculative. The U.A.E. has implemented a variety of policies which
seem to prevent complete outbreaks on its territories and to preserve its crucial business relations
with Asia. While there have been medical and economic consequences in many nations
throughout the world over recent weeks and Southeast Asia has been a severe blow, the U.A.E. is
a balance that can and should be replicated.

26
27
 T-test analysis.

Two tailed T-test was studied based on questionnaire and “level of expectation and level of
experience” was studied by the use of questions and scaling the answers on 5-point scale.

Table 1 Perception scores of positive tourism impacts

Level of confirmation Level of disconfirmation

Strategies to cope up crisis Mean Std. deviation Mean Std. deviation t-value

Increased marketing efforts 4.66 0.48 4.09 0.97 4.492**

Rescheduling of bank loans 4.49 0.60 3.84 1.05 5.502**

Investment in tourism-related 4.20 0.75 3.93 0.88 2.509*

business

Teleworking 4.75 0.67 2.42 0.91 19.11**

Loaned employees to other 3.85 0.96 3.14 1.13 4.747**

enterprises

Reduction of tariffs on imported 3.56 1.05 2.41 0.99 7.892**

inputs.

Financial programs, such as low- 4.13 0.86 3.41 0.95 5.71**

interest credit line or credit
guarantees

Employment programs (e.g. 4.08 0.82 3.11 0.80 8.305**

temporary unemployment programs

28
 or social security waivers)

Perception scores are based on 5-point rating scale.

*p < 0.05; **p < 0.001 (2-tailed test); Degrees of freedom = 79.

Table 2 Perception scores of negative tourism impacts

Level of confirmation Level of disconfirmation

Negative tourism impacts Mean Std. deviation Mean Std. deviation t-value

customers cannot access facility for 4.29 1.00 3.68 1.03 4.16*
services or products

business cannot open premises for service 4.14 0.81 3.91 1.00 1.633
delivery or sell of products

measures to protect the general public has 4.30 0.82 4.11 1.02 1.42
hampered operations

Employee absences due to travel 3.59 1.03 2.20 1.11 6.511*

restrictions

Reduced cash flows 3.45 0.71 3.63 0.79 1.867

Clients cannot pay for services or buy 3.10 1.06 4.13 0.99 5.624*
products

Perception scores are based on 5-point rating scale.

*p < 0.001 (2-tailed test); Degrees of freedom = 79.

“Confirmation "Scores of positive effects on tourism related to the level of expectation and
disconfirmation of the tourism sector in Table 2 reveal that none of the eight positive impacts
above are achieved according to their expectations.The reasons for the expectations of the
tourism business community on positive impacts not being met might be due to the impact of
COVID-19 on eliciting the perception of only tourism business community. Tourism business
community, as common sense dictates, will generally have higher expectations than the common
people in respect of revenue generation, employment generation, investment in tourism business,
development of basic infrastructure, etc.””

29
 FINDINGS
The Government of Abu Dhabi has declared before the end of this year that the tourism and civic
fees will not be discontinued. Restaurant businesses with 30% capacity have been authorized to
resume activities in an attempt to secure the tourism sector since 24 April.

Other possible solutions from the government during and after the pandemic to help boost the
tourism industry are:

a) “Cash loans of a minimum of three months should be made available by the government. The
funding release can be micro-managed on the basis of a month-by - month budget analysis.

b) "At least three months before the economy recovers from the pandemic, the government will
suspend the cost of deposits, leases and credit cards. The same should be done with the
repayment of credit cards.

c) 'Business that hire new workers over the next six months will be subject to the allocation of
zero visa. The imminent high unemployment rate will boost this.

d) Renewal costs for this year would be waived.

e) "Services and housing charges for rentals could be halved so investors could save their money
in order to survive these difficult times.

30
 Conclusion
In order to create and maintain the successful U.A.E. tourist industry small businesses have
played a major role with vacation rentals in the best form. If they don't have the support they
need, they probably won't be here for a long time. The Government of the United Arab Emirates
has always supported the S.M.E. industry, which has made it a success story. The government of
the U.A.E. has a larger position in these difficult times to protect its population not just from the
pandemic but also to protect its economy from the impact of the pandemic. The emeriti are in
several respects distanced from the break-up of the epidemic, but the businesses require some
fuel to survive this hurricane. This thesis explores the effect of the pandemic on the tourist
industry in the United African States. It also explained the damage to the national and
international economies caused by the pandemic. In the best interest of the U.A.E. in securing its
tourist industry to give the economy a fighting opportunity, even as there are worrisome trends in
relation to the pandemic, and its effects.

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 References
Aguiar, Angel, Maksym Chepeliev, Erwin L. Corong, Robert McDougall, and Dominique van
der Mensbrugghe. 2019. “The GTAP Data Base: Version 10.” Journal of Global Economic
Analysis 4 (1): 1–27. https://doi.org/10.21642/jgea.040101af.

Aziz E. Y & Barbuscia D. (27 March 2020). Dubai braces for financial hit as coronavirus batters
vital tourism. www.reuters.com/article/us-health-coronavirus-emirates-tourism/dubai-braces-for-
financial-hit-as-coronavirus-batters-vital-tourism-idUSKBN21E1R0

Brahmbhatt, Milan, and Arindam Datta. 2008. On SARS type economic effects during infectious
disease outbreaks. World Bank Policy Research Paper No. 4466, World Bank, Washington, D.C.
http://documents.worldbank.org/curated/en/101511468028867410/On-SARS-type-
economiceffects-during-infectious-disease-outbreaks.

El-Erian, M. (2020). The Coming Coronavirus Recession and the Uncharted Territory Beyond.
Foreign Affairs, Media Report. Available at: https://www.foreignaffairs.com/articles/2020-03-
17/coming-coronavirus-recession

Hill, Andrew, and Emma Jacobs, “Covid-19 May Create Lasting Workplace Change,” Financial
Times, February 27, 2020. https://www.ft.com/content/5801a710-597c-11ea-abe5-
8e03987b7b20

McKibbin, Warwick, and Roshen Fernando. 2020. “The Global Macroeconomic Impacts of
COVID-19.” Brookings Institute, no. March: 1–43.
https://www.brookings.edu/wpcontent/uploads/2020/03/20200302_COVID19.pdf.

Turak, Natasha (29 January 2020). First Middle East cases of coronavirus confirmed in the
U.A.E. CNBC.com

"UAE CORONAVIRUS (COVID-19) UPDATES". U.A.E.'s national emergency crisis and

disaster management authority. "Dubai's Emirates cuts passenger flights to 13 destinations". 22
March 2020

“The Impact of Coronavirus on the U.A.E Economy”- Giles Coghlan

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 ANNEXURE
QUESTIONNAIRE

What is the main sector of activity of the business? And what does it involve?

Agriculture

Mining and natural resources

Agri-food processing

Non-food manufacturing

Retail and wholesale

Travel and transport

Accommodation and food services

Information technology

Finance

Other services, please specify

33
Is this establishment currently registered with or licensed by a national authority?

Yes, registered business

Freelancing / independent / consultant

No, unregistered business

Do not know

From which types of customers do you generate the most income from?

Foreign tourists

local tourists

government activities/ conferences

Other services, please specify:

What field of tourism does your company primary deal with/ services or products that you
offer?

34
sky diving

hotel and accommodation services

desert safari tours and activities

Site seeing services

merchandise selling

other

How many full-time employees does the business have?

1-4

5-19

20-99

100-249

35
250 and more

Have your business operations been affected by Coronavirus (COVID- 19) pandemic if
yes? How?

Not affected

Slightly affected

Moderately affected

Strongly affected

How has the coronavirus (COVID-19) pandemic affected the ability to offer services or sell
your products?

customers cannot access facility for services or products

business cannot open premises for service delivery or sell of products

measures to protect the general public has hampered operations

delivery of products by local suppliers has been hampered

delivery of products by international suppliers has been hampered

employee’s health has been compromised

36
government has quarantined premises

the pandemic has not affected operation

How has the coronavirus (COVID-19) pandemic affected your enterprise? (multi-select)

Temporary shutdown

Employee absences due to travel restrictions

Clients cannot pay for services or buy products

Reduced cash flows

clients cannot access services and products due to stay at home orders

others specify

Have you adopted any of the following strategies to cope with the crisis? (multi-select)

Temporarily reduced employment

Laid-off employees

Loaned employees to other enterprises

37
Teleworking

Rescheduling of bank loans

Increased marketing efforts

Based on the current trends, do you think there is a risk that your business will
permanently shut down because of this crisis, and if so, when is it likely this closure will
occur?

1 month or less

3 months

6 months or more

Business closure not envisaged

Please select the top three government measures that you believe would be most helpful as
you cope with the COVID crisis.

Employment programs (e.g. temporary unemployment programs or social security waivers)

Financial programs, such as low-interest credit line or credit guarantees

Tax waivers or temporary tax breaks

Reduction of tariffs on imported inputs

38
Rent subsidies

Cash transfers

Other services, please specify:

39