INTERNATIONAL FOCUS MIDDLE EAST 66 SportBusiness <strong>International</strong> • No. 152 • 12.09
INTERNATIONAL FOCUS MIDDLE EAST STRATEGY BEHIND THE SPEND Matthew Glendinning looks at the broader economic and strategic aims behind the spectacular event hosting success of the Gulf states. THE SPORTS INDUSTRY may occasionally feel like it rules the universe, especially when bankers are having a bad day. But the sheer scale of the global tourism industry puts even the sports sector in the shade. The United Nations states that sport accounts for as much as three per cent of global economic activity. Impressive enough, but the UN’s World Tourism Organisation estimates that tourism makes up 10 per cent of world GDP. Small wonder that the new country or city entrants to sports event hosting in the Middle East see the promotion of tourism as a major part of their brief. At the tourism industry trade show ‘World Travel Market’, staged at London’s Excel Centre in November, those UN numbers were supported by the thousands [50,000 attended in 2008] of delegates swarming the eye-catching exhibition stands. In the Middle East section, a falconer in traditional Arab dress held out a hooded bird on a gloved arm to intrigue passers-by in front of the Egypt stand. The Abu Dhabi desk next door, staffed, admittedly, by three London girls in flowing golden robes, was located in front of an artificial waterfall. On the first floor of Abu Dhabi’s mobile exhibition unit - the one with the waterfall - SportBusiness caught up with Ahmed Hussein, who heads up sports and events marketing for the Abu Dhabi Tourism Authority (ADTA). It had been a good few weeks for the marketer. Yas Island, the $40 billion leisure and entertainment development containing the Yas Marina F1 track, had just been selected as the ‘World’s Leading Tourism Development Project’ by the World Travel Awards, the so-called travel industry ‘Oscars’. Yas Marina itself had won rave reviews for the inaugural Abu Dhabi Grand Prix, not least from Bernie Ecclestone who hailed the track as the best ever. “What they’ve done is unbelievable,” said F1’s impresario. In a month when the UK government baulked at a request of £5 million funding for the England 2<strong>01</strong>8 <strong>FIFA</strong> World Cup bid, the Emirate’s spending of a minimum $400m on Yas Marina seems from another world. But there are sound strategic reasons for the outlay, Hussein explains. “A world-class event like the F1 Grand Prix was always top of our wish list and with the right timing and hard work we have been able to make it happen, “he said. “The [F1] strategy comes from the government, which always backs initiatives for cultural heritage, economic diversity and so on. “Awareness [of Abu Dhabi] is one of the priorities and although an F1 Grand Prix sounds like a one-off, from this kind of activity we can plan a whole year of intentional motorsports events. “Before the F1 event, for example, we had three support races which provide the right seeds to start promoting the track and motor sports in general: the Chevrolet V8 Supercar Championship, the Porsche Supercup and GP2 Asia. “From F1 to production car racing, to more training and track days, we’re growing a new business very fast and in a couple of year’s time you will see a lot more events here.” While the event owner, Abu Dhabi Motorsports Management, a joint venture between the Government of Abu Dhabi and ALDAR Properties, has yet to measure the economic impact of the race, Hussein adds that “the feedback from normal public access the feedback from clippings from media and so on has been amazing. There was a lot of work done before and a there’s a lot of echo to come - harvesting the results after the race.” Ferrari World Then, of course there is Ferrari World, the Ferrari-branded theme park on Yas Island, which is set to open next year. “It’s a one of a kind,” says Hussein. “We will create a theme park around motorsport and Ferrari especially. After football, motor sport is a priority in Abu Dhabi and F1 provides an opportunity for the industry to grow. It’s a good start for motor sport in Abu Dhabi.” If this understatement highlights the almost fantasy quality of the Emirate’s ambitions, the Gulf states in general are nevertheless shrewd operators in the sports industry with an eye on the big picture. “To compete in [the wider] economic sense, we need these kind of activates as a catalyst to build more infrastructure for better growth,” says Hussein. Coming up on the event radar, there is the <strong>FIFA</strong> Club World Club, hosted by Abu Dhabi at two venues, which have been upgraded for the event, the Mohammed Bin Zayed Stadium and the Zayed Sports City. Having hosted the AFC Asian Cup in 1996 and with plans for future events in the pipeline, showcase football is also part of the overall strategy. “On the tourism side, we leverage on these kind of events which relate to the Abu Dhabi government’s strategy and we have a lot of big plans to get more of them,” says Hussein. But it’s not just motorsport and football. The Emirate’s major golf event, the Abu Dhabi Golf Championship, leads off the so-called ‘Desert Swing’ series at the start of the year en route to Doha and Dubai. So how does Abu Dhabi differentiate this event from those of its ambitious neighbours “Being in Abu Dhabi is the point of difference,” says Hussein bluntly. “There’s a different feeling here and without comparing, we complement the region. It’s a very healthy environment and we would wish to have a fourth or fifth big tournament held in the Gulf. “The golf events are more prestigious, more B2B, with more government involvement and stakeholder engagement over four wonderful days in Abu Dhabi and 12 days in the region.” As for the longer term, the strategy will be to keep looking at world class events and building up infrastructure, perhaps with the intention of bidding for the Olympic Games, as Qatar did for the 2<strong>01</strong>6 Games. But the Abu Dhabi Sports Council is also pursuing other avenues -creating events of its own like the Abu Dhabi Adventure Challenge and Abu Dhabi Triathlon, events that are not shared with any governing body or organisation. The Abu Dhabi Adventure Challenge, for example, is a multi-sports race for teams of four, who race over six consecutive days across six disciplines: sea kayaking, cross orienteering, mountain biking, adventure running and rope activities (e.g. abseiling). The aim, says Hussein, is to spread awareness of the Emirate’s natural assets, from its water frontage and islands, to its sand dunes and mountains. This year, he adds, the race will attract 47 teams, up from 36 last year, and 25 nationalities, up from 11 last year. Given the marketing savviness of the interviewee, it seemed reasonable to ask one more question about Abu Dhabi as a sports destination. What does the national brand represent The response was immediate. “Respect: our brand essence is respect, you will find more than 180 nationalities with us, and for visitors, locals, people of any ethnicity or religion, it’s about respect. It’s our main message.” Coherent, strategic and high-spending, western commentators are now anything but dismissive of the Middle East sports programme, in general, and Abu Dhabi’s F1, in particular. SportBusiness <strong>International</strong> • No.152 • 12.09 67
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