Leisure sector to spur construction market

February, 17th 2015

The amusement and leisure industry is expected to give a boost to the construction sector in the region with several such projects in the pipeline.

The industry is set to touch Dh118 billion ($32.1 billion) in the region, as per the Global Industry Analysts report.

The merging of retail and entertainment sectors will be the focus of a leading entertainment industry event in Dubai, UAE, in April. The Dubai Entertainment Amusement and Leisure show (Deal 2015) will run from April 14 to 16 at the Dubai World Trade Centre.

Several upcoming projects in the UAE, Saudi Arabia, Qatar, Oman and the rest of the region will trigger a remarkable growth within this sector, said the report.

The GCC retail sales are expected to grow at a 7.3 per cent compounded annual growth rate between 2013 and 2018 to reach $284.5 billion, it said.

Sharif Rahman, chief executive officer the show organiser International Expo Consults (IEC), said: “Leisure is a versatile term and an important facet of malls as it draws the families with the kids together. The latest trend is towards ‘the new age retail entertainment’ where a large entity backs an entertainment outlet which not only includes rides but cinemas, redemption machines and other forms of entertainment.

“Some years back it was possible for a retail mall to have its operations without an entertainment centre but not any longer. Family entertainment centres (FEC) are a must-have feature for every mega mall in this region. Indoor theme parks are here to stay as you are more likely to go to the mall every week than an outdoor park due to the region's climatic conditions. This is one key component that will help indoor theme parks and FECs to grow at a remarkable pace in the near future.”

“Industry experts are of the view that shopping malls in the UAE are more focusing on enhancing their entertainment facilities as more and more visitors are increasingly stopping over retail malls for entertainment rather than shopping,” said Rahman.

“Malls are striving to bring in new leisure attractions each year to keep the customers engaged. Retailers, on the other hand, are leaving no stone unturned to turn shopping into an entertainment experience and thereby increasing sales,” he said.

Deal 2015 show will have exhibitors from countries as diverse as Belgium, Canada, China, Hong Kong, Germany, Netherlands, Italy, UK, France, Turkey, and US, apart from several new countries that come to the show each year.

The indoor centres will ideally house an area of more than 25,000 sq ft with elements that are bound to attract families together with their children to these outlets.

These indoor centres encompass the latest family entertainment centre equipment, video games, redemption games and other innovative offerings.

“2015 seems to be a promising year for the retail and entertainment industry as operations in the leisure and amusement sector. The industry has registered an exponential growth in revenue in the last year. FECs are the main pillars that would be supporting the retail operations and developments within the Middle East and is pegged to grow at a fast pace in 2015 and beyond,” said Rahman.

“Malls with FECs have registered a considerable hike in earnings in the last few months mainly due to the influx of tourists from other regions. FECs form the crux of the retail industry on a wider scale as without the fusion of FECs within retail malls, the whole retail sector would have been just another brick and mortar retail sector,” he added.

Source: www.tradearabia.com