UAE tourist spends grow 10% in first nine months of 2015

Tourist F&B spending sees 30% year-on-year growth, study says

12 November 2015

Overall tourist spends in the UAE increased by 10 per cent in the first three quarters of 2015 compared to the same period last year, according to a new report on consumer spends by Network International.

The food and beverage sector witnessed the highest growth, 30 per cent year on year, with a 78 per cent growth in Saudi spending making them the top spenders in the sector. F&B revenues outperformed room revenues

The report, based on credit and debit card transactions in the UAE, found that the hospitality sector grew by 8 per cent, with a decline in spending from Russians (-48 per cent) balanced by a 90 per cent increase in spending by Qataris, 25 per cent increase in Saudi Arabian spending and a 23 per cent increase in British spending.

Traditional top spenders

Network International COO David Mountain said, “The third quarter data indicates a major trend for local retailers — domestic and GCC spends, specifically Saudis and Qataris, have gained influence in the UAE markets displacing traditional top spenders such as the Chinese and Russians. Our analysis also provides the hospitality industry with insight on bolstering weakening RevPAR (Revenue Per Available Room) revenues as the F&B sector witnesses strong spends across all nationalities.”

The luxury sector declined 7 per cent, driven by a fall in Russian and Chinese spending, which accounted for 25 per cent of the overall spend last year.

The fashion sector grew 4 per cent in the third quarter, driven by Saudis (33 per cent growth), Qataris (68 per cent growth_ and Nigerians (87 per cent growth). Russians spends declined by 74 per cent, and they were replaced by Saudis as one of the top tourist spenders.