• Guidance for 2017 remains unchanged Management maintained its guidance of 6.7mn visits in 2017 and AED2.4bn in revenue. For 2016, 0.9mn visits are expected, with revenue of AED297mn. Management indicated that the visit and revenue numbers for the two operational months in 2016 should not be extrapolated into later years, in light of the plan to offer reduced prices and given that motiongate will not be fully operational then. Management indicated that once its detailed operating budget is complete, expected by year-end, numbers will be communicated regarding guidance for 2017.
• motiongate to be c50% operational once the park opens; tickets offered at discount The park will officially open on 31 October 2016 with a soft opening scheduled for the beginning of October. Throughout the soft opening, the park entry will be through invitations (for free); however F&B revenue will be generated. All theme parks will be fully operational on the official scheduled date, with the exception of motiongate, the largest park in the resort, which will start operations at almost half capacity with 12 rides operational. Tickets will be offered at a discount for a number of months, until the full opening of the park. Within motiongate, the delayed part is DreamWorks (with 12 attractions inspired by Kung Fu Panda, Madagascar, Shrek, and How to Train Your Dragon).
• Other parts of the park are on track for the October opening Completion rates as of end of June: 93% of overall infrastructure, 84% of overall ride system, 80% overall facilities construction, and 60% of the overall show systems. The Lapita Hotel has already been delivered and c80% of the total available space at Riverland Dubai has been leased, with 50 lease proposals signed and tenants in the preparation phase. Revenue from Riverland has started to be booked, under deferred revenue until the park starts operation.
• Focus on sales efforts continue Agreements signed with 30 DMC resellers, 24 tour operations and a B2B sale platform development will be released in the second half of August. Single day tickets are set to be launched on 22 August. Annual passes were launched in February 2016, which management aims to keep at c20% of total tickets.
• Tourism industry prospects remain strong Dubai’s international visitors reached 6.6mn through May (+4% Y-o-Y). India was the main market with 0.7mn visitors in May (+13% Y-o-Y).

Mai Attia
Sara Boutros