The Middle East has long been renowned for its vast number of high-end hotels and array of luxury hospitality options. Dubai in particular has built its reputation on its range of glamorous hotels and entertainment.
The last few years have been some of the most turbulent in recent times and as a direct repercussion there has been a decline in demand for premium products. This has resulted in a surge in value airlines and hotels entering the region, accommodating the ever changing needs of the consumer. The local tourism industry has shown, yet again, it can adapt to capitalise on new growth trends.
The topic of low-cost travel and accommodation has been featured heavily for several years at Arabian Travel Market and it seems that, once again, the show has been successful in predicting future trends.
In recent years there has been a noticeable yet gradual increase in the variety of cost-effective accommodation and budget airlines available here.
It’s a common misconception that low-cost hotels and ‘no frills’ airlines mean bad service and out-dated facilities. This is not the case. Having budget options alongside five-star hotels opens up a destination, attracting tourists of all ages and incomes. An increase in visitors is not something to be dismissed during turbulent economic times.
The Middle East market is maturing and the perception of low-cost travel and hospitality is beginning to change for the better. Operators are beginning to provide premium value lodging experiences for tourists, in turn opening up the region to a wealth of new consumers.
There will always be room for the up-market hotels and first-class airlines but, during a recession, many operators are finding it is the perfect time to launch their competitive travel options.
flydubai – the budget airline launched in 2009 – is the latest edition to the Middle East’s low-cost travel industry. In fact, the last eight years have seen the launch of at least six low-cost carriers in the Gulf alone.
It has been predicted by industry bodies that the market share of budget carriers will grow from seven per cent in 2008 to 12 per cent by 2015.
Last month, Layia Hospitality and CAPM Investments formed a joint venture to develop five budget hotels in Abu Dhabi.
This year’s Arabian Travel Market, through its seminar programme, will focus on current issues affecting the industry, with low-cost travel being just one of the topics.
Arabian Travel Market has always acted as a weathervane for the travel and tourism trade and I firmly believe this year’s event, which takes place from May 4 to 7 at the Dubai International Exhibition Centre, UAE, will be no different.
By Mark Walsh, group exhibitions director, Reed Travel Exhbitions – organiser of Arabian Travel Market.