I think hearing about people getting arrested for possession of melatonin or flogged for kissing their wives has a larger negative impact on Dubai as a tourism/business destination than anything any financial columnists are saying. I know I wouldn't come within 2,000 miles of the place.
You've heared it long before, and it hasn't impacted tourism, it was still THE destination back in the day. Law is strict, but should one respect it when chooses to come there. The Gulf as a whole is not for everybody, for sure.
Notice how most of the stories you read about people arrested for moral code offence, concern Britons. I'm not so surprised, as some of them forget it's not a UK colony. Once I've seen a British woman making fun of arabic incenses in a mall, made stupid facial expressions, laughed off, etc. A local approached, calmly showed her how to use it and then angrily said "it's our land, our culture. not yours". Hard to argue with that.
Dubai has dozens of dark sides, but if you agree to live by the code, I still believe it can be lots of fun.
