Thursday, April 2, 2020
Introduction Governments strive to increase the economic activity in their country. Therefore, the government may provide an economic environment that would attract investors into the country. Improvement of infrastructure is one of the major methods through which governments improve the economic environment. In addition, the government may improve the security and political freedom to improve the economic environment.Advertising We will write a custom essay sample on Public Investment: Louvre Museum specifically for you for only $16.05 $11/page Learn More Tourism is one of the major economic activities of most countries. Tourism may inject billions of dollars of dollars in the economy. However, for the government to reap maximum benefits from tourism, it must invest in various facilities. One of the major advantages of tourism is the fact that it facilitates the development of other sectors of the economy. Tourism leads to significant development in the hospitality industry. In addition, tourism has a direct or indirect effect on the culture, education and health industry of a country. Countries that have huge financial reserves may invest the funds in the development of the tourism industry. This would in turn lead to the development of other sectors of the economy. This would lead to the development of the economy. Countries in the Middle East have enormous financial reserves due to the presence of oil. These countries invest the funds in various projects that improve the welfare of people in the community. In addition, the countries may use the reserves in various infrastructural projects that would increase economic activities. This would diversify the economy and reduce overreliance on oil. United Arab Emirates (UAE) is one of the major countries that rely on oil for its economic development. Dubai is one of the regions that have experienced exponential economic growth due to sound infrastructural investment of funds from oil . The economic prosperity of the Dubai has made other countries in the Middle East strive to make sound investments that would improve their economy. Abu Dhabi is one of the regions that strive to make sound use of oil money. Abu Dhabi has initiated various infrastructural projects that would help improve its economy. Development of the local branch of FranceÃ¢â¬â¢s Louvre Museum is one of the projects that seek to improve tourism, and consequently, economic development in the region. The Louvre Museum Project The government of Abu Dhabi appreciates the importance of tourism in economic development of the region. The government has collaborated with western bodies in the development of three cultural institutions. The Louvre museum is one of the cultural institutions. The development of the museum will cost the government a staggering $653 million.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, this is a small amount of money for the region, which has huge oil reserves. Arabtec won the contract for the construction of the museum after a competitive bidding process. The company will undertake construction of the museum with the help of Constructora San Jose and Oger Abu Dhabi. During the financial crisis, the government suspended most infrastructural projects due to the slump of the global economy. Slump of the global economy affected Abu Dhabi significantly due to its dependence on oil exports. The resurgence of the global economy enabled the country to kick-start the suspended projects. However, it is uncertain whether the projects will have the desired effect. In any public or private project the return of investment of the project must justify the investment in the project. This is one of the main reasons for undertaking feasibility studies. For the museums to have a good return on investment, they must attract a huge number of visitors. The government will start opening the museums in 2015. The number of visitors will determine whether the government made a sound investment decision. After opening the Louvre in 2015, the government will then open the Zayed National Museum in 2016. The government is collaborating with the British Museum in the construction of the Zayed National Museum. In 2017, a franchise of New YorkÃ¢â¬â¢s Guggenheim Museum will open its doors to the public. The government anticipates the museums will attract a huge number of tourists. The Abu Dhabi government spending review forced the government to postpone the construction of the museums. The museums were due to start opening in early 2014. The development of the museums is part of an ambitious project by the government of Abu Dhabi to develop the Saadiyat Island, which is off the coast of Abu Dhabi City. Development of the Saadiyat Island will make the Island become a critical component of the economy of Abu Dhabi. Some of the flagship projects in the isla nd include the development of a luxurious accommodation and a university campus with more than 1600 students. The success of infrastructural projects on Saadiyat Island would facilitate future development of similar projects in other locations.Advertising We will write a custom essay sample on Public Investment: Louvre Museum specifically for you for only $16.05 $11/page Learn More Dubai has developed similar infrastructural projects in the past. Therefore, the government of Abu Dhabi should strive to replicate the strengths of similar projects in Dubai. In addition, the government should strive to avoid some of the problems that similar projects in Dubai faced. Abu Dhabi strives to establish itself a cultural centre. The development of the three museums would go a long way in building this image. However, Abu Dhabi faces stiff competition from Dubai. In addition, lack of freedom of expression does not the right political environment that would attract tourists into the country. The success of the infrastructural projects on Saadiyat Island would make Abu Dhabi catch up with Dubai, its illustrious neighbour. Conclusion Oil is one of the most valuable minerals in the world. This is because oil is necessary for economic development. Oil helps in fuelling industries that drive the economy. Countries that have huge oil reserves earn billions of dollars annually from exports of the vital product. This provides the countries with huge foreign reserves, which they may use in developing other sectors of the economy. Dubai is a clear example of how sound investments in oil may help in economic development and reduce overreliance on oil. Development of the tourism sectors is one of the major methods through which countries use funds from the sale of oil to diversify their economies. Currently Dubai earns billions of dollars annually from tourism due to sound infrastructural investments of oil money. Abu Dhabi strives to follow the same path to enable it rival Dubai as an attractive tourism destination. Development of the Louvre Museum and three other museums will help in making Abu Dhabi a cultural centre. The government is undertaking these projects on Saadiyat Island. The projects on Saadiyat Island will cost the government of Abu Dhabi billions of dollars. Good return on investment will justify the spending of vast sums of money by the government. Otherwise, the government is just wasting valuable funds. This essay on Public Investment: Louvre Museum was written and submitted by user Kamille Riley to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.