Kids go free initiative



The Dubai Government yesterday launched a "kids go free" initiative for the summer as it steps up efforts to boost the emirate's tourism, which has suffered from the global slowdown. Dubai's Department of Tourism and Commerce Marketing (DTCM) said the worldwide promotion, which runs from July 1, had the support of more than 70 hotels and would help boost occupancy levels.

The offer includes free accommodation, meals and entry to attractions for one child under 16 who is accompanied by two adults. New data from STR Global shows a 40 per cent drop in revenue per available room last month in Dubai compared with the same month last year to Dh517 from Dh867, and a drop in occupancy levels to 67 per cent from 78 per cent. Alex Kyriakidis, the global managing partner at Deloitte Tourism Hospitality and Leisure, praised the Government's efforts to co-ordinate Dubai's tourism, saying the unity of the airlines, hotels and the Government was an effective strategy.

"The DTCM has stepped right in and partnered the industry," Mr Kyriakidis said. "They've worked in marketing-consistent themes for the consumer so you don't have several product providers going off in different tangents." Emirates Airline last month announced a promotion for children that included free flights, hotel stays, meals and entry to major leisure attractions. Preliminary data for the first quarter from the DTCM showed a 14 per cent fall in hotel revenues compared with the same quarter last year.

Revenues fell to Dh3.66 billion (US$997 million) in the first three months of this year from Dh4.26bn in the first quarter of last year. The number of guest nights at Dubai's hotels and hotel apartments fell 12 per cent in the first quarter to 5.344 million, from 6.067 million last year. This was despite a 5 per cent rise in the number of tourists, which reached 1.955 million in the first quarter of this year, according to the data. The DTCM also plans to launch a comprehensive media campaign aimed at Dubai's largest tourist markets, which are the UK, Germany, India, Russia, China, Japan and GCC states.

"The fact today is that every single country in the world that is dependent on the tourism industry is fighting for the survival of its tourism market," Mr Kyriakidis said. Dubai's tourism and hotel sector accounted for 19 per cent of Dubai's GDP last year and indirectly contributed towards 32 per cent of economic activity. @Email:rbundhun@thenational.ae

The struggle is on for active managers

David Einhorn closed out 2018 with his biggest annual loss ever for the 22-year-old Greenlight Capital.

The firm’s main hedge fund fell 9 per cent in December, extending this year’s decline to 34 percent, according to an investor update viewed by Bloomberg.

Greenlight posted some of the industry’s best returns in its early years, but has stumbled since losing more than 20 per cent in 2015.

Other value-investing managers have also struggled, as a decade of historically low interest rates and the rise of passive investing and quant trading pushed growth stocks past their inexpensive brethren. Three Bays Capital and SPO Partners & Co., which sought to make wagers on undervalued stocks, closed in 2018. Mr Einhorn has repeatedly expressed his frustration with the poor performance this year, while remaining steadfast in his commitment to value investing.

Greenlight, which posted gains only in May and October, underperformed both the broader market and its peers in 2018. The S&P 500 Index dropped 4.4 per cent, including dividends, while the HFRX Global Hedge Fund Index, an early indicator of industry performance, fell 7 per cent through December. 28.

At the start of the year, Greenlight managed $6.3 billion in assets, according to a regulatory filing. By May, the firm was down to $5.5bn. 

Where to buy

Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com

Specs

Engine: 2-litre

Transmission: Eight-speed automatic

Power: 255hp

Torque: 273Nm

Price: Dh240,000