UAE is hoping to start construction of a new condo tower at the site of a former hotel, an attempt to shore up the countrys faltering tourism industry.
The tower is being built on the site where the former Abu Dhabi Hotel & Casino was once a hotel, the Emirati government said on Monday, as it unveiled plans to boost its tourism sector in the southern Arab state.
Dubai’s plan for the Dubai Tower, which will feature a hotel and residential towers, will come after the UAE and UAE Companies Development Agency (DUCA) announced in January that they had signed a deal to build a $1.2 billion hotel-casino development in the Emirate.
The hotel project has been in the works since last summer, but Dubai’s decision to go ahead with the project was met with resistance from the hotel industry, which feared a loss of business if hotel owners lost their hotel licenses.
Dublin said it would begin building the tower this month, which is scheduled to open in 2021.
The hotel will include restaurants, shops, apartments, offices and shopping.
The project is a significant step in the government’s efforts to revive the tourism sector, which has struggled to survive the country’s economic crisis.
Dubai’s tourism sector is currently worth $1 trillion (US$1.4 trillion) and is expected to grow at a compounded annual rate of 8% in 2021, up from 7% in 2020.
The government hopes to have its hotel project up and running by the end of the year, with construction due to begin in 2022.
Dubay said it will help diversify the economy, as well as promote investment in Dubai.
The Dubai Tower will feature luxury hotels and restaurants, and will also include retail space and other features.
It will be the first new luxury hotel project in UAE history, said Dubai Governor Nasser bin Zayed Al Nahyan.