THE UAE’s travel and tourism sector is most likely to be one of the fastest to recover from the downturn due to the dynamic nature of its product offering, according to consumer market analyst Euromonitor International.
However, the emirate’s tourism bodies were urged to shift their focus to key emerging source countries such as China and Brazil, whose rising middle class continued to offer untapped demand.
Caroline Bremner, global travel and tourism manager, Euromonitor International, who will be conducting a seminar at the Arabian Travel Market this month said, “Despite the Middle East being one of the fastest growth regions in the world – not just economically but also for travel and tourism – it is not immune to the global economic and financial crisis which has unfolded over 2007 and 2008.”
“Real GDP growth is expected to slow over 2009 with the region’s performance strongly linked to the Gulf and demand from China. The Middle East has also suffered at the hands of high inflation but, in most of the region’s countries, inflation is likely to ease this year as a result of falling oil prices, benefiting consumers and businesses,” she said.
“Dubai as a mature destination will continue to focus on diversifying its offering to attract new segments such as budget travellers and new source countries. Up-and-coming Abu Dhabi will continue to invest in its differentiated offer, appearing more regularly on international itineraries.”
Dubai has often been seen as the Middle East’s star tourism destination, says Bremner. However its position as a luxury location is a double edged sword, also making it the most exposed emirate to the financial crises. As such, it can be regarded as a barometer of the region’s overall performance. Figures from Dubai’s Department of Tourism and Commerce Marketing (DTCM), stated that for the first and second quarters of 2008 visitor arrivals from the regional blocks of Europe, Russia (including the Commonwealth of Independent States made up of former Soviet Republics and the Baltics) and lastly the Americas fell by 17 per cent, 16 per cent and 26 per cent respectively from the last quarter of 2007.
Hotel occupancy was also down from 90 to 80 per cent over the same period. Euromonitor International estimates that current hotel occupancy was 72 per cent for the UAE in 2008. Bremner will be addressing the session entitled Future Trends for the Travel & Tourism industry in the Middle East on Wednesday May 6 from 12 to 12.45pm at the Dubai International Convention & Exhibition Centre. The ATM seminars are sponsored by TTN Middle East magazine.