Learning Center
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>




HISTORY Tour Dubai was established in 1989 under the name of “Coastline Leisure” by Russ North, a British expatriate. Operations began with a 50-foot yacht, used for charters in the creek and open sea. The first dhow was added in 1992, initially offering private charters. A second dhow was added in 1997. Simultaneously, the Guided Creek tour during the daytime was commenced. By 1999, the company was specialized in providing dhow cruise charters to tour operators and local companies. Due to the growing number of tourists, a daily dinner cruise was started in 2002. The company now operates 4 dhows – 3 owned and 1 on long lease. Dhow capacities are 79, 65 and 50 passengers for the dhows owned by Tour Dubai and 275 for the lease dhow. At present, the company deals with most of the Destination Management Companies (DMCs) operating Incentives groups to Dubai. Besides booking from tour operators, Tour Dubai receives direct bookings from corporates and hotels as well. Tour Dubai is one of only 3 companies with a valid liquor license for beverage service on the dhow.

BUSINESS OVERVIEW Dhow cruises are the second most sold activity to tourists to Dubai, after desert safaris. Every tour operator planning an incentive trip provides options for desert safari, dhow cruise and city tour to the client. In view of this, dhow cruise business has increased in direct proportion to the increase in tourist numbers. This has led to many new operators entering the market. With an established presence in the market and as a specialist in handling Incentive groups, Tour Dubai is among the top dhow cruise operators on the creek today and the number one operator of Incentive charters. Client list includes DMCs such as Gulf Dunes, SNTTA, Big Bus Tours, Alpha Tours, Desert Adventures, Net Tours, Travco, Gulf Ventures, 1001 Events, Reem Tours and Essence of Arabia, among others. Besides tour operator business, Tour Dubai benefits from it‟s established name with charters for corporates companies. 5 star hotels in the city and along the beach also provide business for daily dinner cruise.

Page 1 of 4

CRUISE PRODUCTS Tour Dubai operates 4 distinct cruise products:     Daily dinner cruise Dhow charters Guided creek tour Romantic cruise

Whilst most operators offer the daily dinner cruise and dhow charters, Tour Dubai is the only company in the creek providing Guided creek tours and Romantic cruise. Guided creek tours operate 4 times a day, 365 days a year. It includes a one-hour cruise in the creek with pre-recorded commentary in English with information on Dubai and the Creek in particular. Tour Dubai has an exclusive contract with the Big Bus company, wherein all Big Bus ticket holders get a complimentary Guided creek tour on our dhow. Romantic cruise is a unique premium option for 1 couple only. It includes stretch limo transfers, red roses for the lady on arrival, welcome drink, 3 course set menu dinner from 5 star hotel, 2 hours intimate cruising, butler service and unlimited beverages. Daily dinner cruise operates 365 days a year, from 8.30 pm to 10.30 pm. It includes 2 hours cruising, buffet dinner from 5 star hotel, water, soft drinks, tea and coffee. There is also a guitarist on board to entertain guests. Tour operators account for nearly 70% of the daily dinner cruise bookings, balance 30% are hotel or direct bookings. Dhow charters account for nearly 50% of total sales. Timings, cruise duration, catering and entertainment options are customized for each group. Tour operators account for more than 80% of dhow charters for incentive groups. BUSINESS MIX At present, the business mix is as follows: Dhow charters Dinner cruise Guided creek tour Miscellaneous 50% 30% 12% 08%

Average gross margins by activity are as follows: Dhow charters Dinner cruise Guided creek tour Miscellaneous 55% 45% 98% 30%

Page 2 of 4

DHOW CRUISES – GOING FORWARD Due to the increasing number of tourists and DMCs, the last 4 years have seen many new cruise operators enter the market. Most new entrants have pursued the strategy of entering at lower prices in order to grab market share. With increasing food prices and cost of operation, it has become difficult for many operators to maintain healthy margins. Due to heavy competition and the fact that these operators are unable to consistently deliver on quality, they are unable to raise prices to tour operators. Consolidation within the dhow cruise industry is imminent and inevitable. There are many reasons for this:         Tightening of Government regulations Difficulty obtaining new licenses No berths available for parking new boats Increased cost of operation Increased catering costs DMCs looking for one relationship to manage all cruise requests Conflict between charters and daily dinner cruise for operators with a single dhow Lack of professionalism and business know-how of majority of cruise operators

OPPORTUNITIES IN THE CREEK Tour Dubai is well positioned to take advantage of consolidation. Except Arabian Adventures, we represent most of the premium DMCs in both the Incentive and FIT segments. The creek is being expanded upto Business Bay. Whilst there are no firm plans at the moment on what cruise activities will be allowed in the area, there is no doubt that this will open up another avenue for tourists seeking to explore Dubai. Tour Dubai also has the advantage of operating two unique dhows, completely different to other dhows in the creek. With the addition of more capacity, we are in pole position to obtain more business with our offering and expertise.

Page 3 of 4

OPPORTUNITIES OUTSIDE THE CREEK Whilst dhow cruises offer a „traditional‟ experience, there is a growing demand for cruises on the open sea. Day programs on catamarans are becoming increasingly popular as they allow visitors a casual fun experience, at the same time providing a tour of the beach landmarks such as Burj Al Arab and Atlantis. A typical 4-hour program includes light lunch, refreshments and a chance to swim and take in some water sports near Jumeirah Beach Hotel. Once the marina as Palm Jumeirah becomes operational, more demand is anticipated for cruising around Jumeirah. Additionally, there are opportunities to operate speed boats and yachts. Fishing trips, trips around the Palm and World Islands, cocktail cruises along the Jumeirah beachfront are already being serviced by a few operators, with demand expected to increase in the coming years. With Tour Dubai‟s existing business relationships with major tour operators, there is ready business for these services. OPPORTUNITIES OUTSIDE DUBAI Abu Dhabi, Oman and Doha are all vying to attract tourists. At the present time, dhow cruises are either non-existent or are provided on a very basic level by a very few operators. Another opportunity is to operate overnight charters from the East Coast to the Musandam Peninsula. We have already had preliminary discussions with Abu Dhabi Tourism Authority, and they are very keen to have a company set up dhow cruises in the capital. Abu Dhabi‟s tourism is set for a major boost with mega projects in the pipeline and Etihad Airways‟ continued expansion into new markets. PLANS FOR THE FUTURE In order to take advantage of the opportunities highlighted above, Tour Dubai will need to:      Acquire more dhows with greater capacity Reduce dependence of leased vessels Establish itself as the largest operator of dhow cruises in the creek Invest in high yield areas such as luxury cruising Invest in shore power to gain substantial savings on fuel costs

PROPOSAL The company is willing to discuss a possible part-sale of ownership to a potential investor, in order to achieve the goals listed above.

Page 4 of 4

To top