Sun shines bright on UAE tourism

The UAE tourism industry will continue to expand in 2015, with 7.6 per cent year-on-year growth in tourist arrivals and 9.3 per cent increase in tourism receipts, according to a report by Business Monitor International (BMI). 
"The outlook for UAE's tourism sector looks bright. We expect strong growth in tourist arrivals, tourism receipts and hotel industry value,” the report said.

The report predicted that total tourism receipts would cross the US$20 billion mark in 2015. Inbound tourists will reach 16.47 million and outbound travellers are also expected to reach 2.64 million this year. The hotel and restaurant industry is also forecast to grow by 16.65 per cent to reach US$10.84 billion.

Saudi Arabia ranked the most important source market for the UAE, followed by the UK and India. India lost the second place as tourist arrivals did not increase at the same pace as that from the UK. BMI also believes that tourist arrivals from Oman, China and Australia will continue to show good growth.

In terms of region, the Middle East looks set to remain the largest single source market for inbound tourism flows to the UAE. Its share of total tourist arrivals is set to remain around the 30 per cent mark. Taking a greater market share is the Asia Pacific region, with arrivals set to rise from 2.9 million in 2014 to four million in 2018. This reflects the growing wealth of Asia, coupled with increased business travel and significant numbers of expatriate workers coming to the UAE from nations such as India and Pakistan.

The tourism authorities in Dubai are said to be already considering ways to boost the number of inbound tourists from China, India and African nations. This involves examining what holidaymakers from these destinations require and tailoring Dubai's tourism offering accordingly through the development of new hotels and attractions.

The local authorities are upbeat on the medium-term outlook for UAE tourism. According to Helal Saeed Almarri, the director general of the Dubai Department of Tourism and Commerce Marketing (DTCM): The latest visitor numbers "show a steady and consistent increase across the key indicators that are critical in order to achieve our Tourism Vision for 2020.”

Dubai's Tourism Vision 2020 plan aims for the UAE to welcome 20 million tourists and generate Dh300 billion in tourism revenues by that year.

BMI believes that this ambitious target could be met, considering current trends and the government's strong support for the tourism sector. Moreover, with Dubai hosting Expo 2020, it will be a clear boost to inbound tourism. 

BMI also forecasts that hosting the Expo will provide a significant boost to the emirate's construction, real estate and tourism industries while also having the less tangible effect of boosting Dubai's cultural profile globally. Besides a boost to tourist figures in the year of the Expo, the added prestige and publicity of winning the bid will have implications before and after the event.

The development of large-scale projects, such as a D600 billion theme park called Dubai Adventure Studio and the Dubai Art Museum, will ensure that leisure tourism continues to increase. Business and conference travel also represents another key growth area.

The UAE's tourism sector has grown dramatically over the last decade, owing partly to the surge seen in regional travel across the Middle East and the development of international tourism, particularly in Dubai. The UAE reportedly accounts for around a third of Middle Eastern travel and tourism demand.

The significance of the UAE's tourism sector in the region is reflected in the number of passengers visiting Dubai, which receives the largest number of visitors of any Arab destination, with the exception of Egypt. Given Egypt's ongoing political and economic difficulties, the stability offered by the UAE could see greater numbers of tourists visiting over the coming years. Demand from Saudi Arabia, in particular, looks set to remain high.

Globally, Europe will continue to dominate the tourism market, accounting for almost 50 per cent of arrivals in 2015 to 474 million. Asia will be the second largest global tourist market with 227 million, followed by North America at 86 million, Latin America at 56 million, Africa at 43 million, Middle East at 31 million and Caribbean at 21.5 million.