'Resilient' UAE tourism sector is booming in face of global cost of living crisis

The global cost of living crisis has failed to dent surging demand for inbound travel to Dubai and the rest of the Emirates, industry experts said.

Tourism and hospitality leaders said the sector was exceeding expectations during challenging times.

They told of travellers embracing luxury and staying for longer, as a renewed thirst for tourism in the post-pandemic world shows little sign of slowing.

Such enthusiasm was on full display as thousands flocked to the opening day of the landmark 30th Arabian Travel Market in Dubai on Monday.

Early projections from organisers suggested there would up to 34,000 visitors over the course of the four-day event, which has a theme of cutting carbon emissions.

'Resilient' sector is buoyant

“The tourism industry is much more resilient than most thought at first,” said Carlo Olejniczak, regional managing director of Booking.com.

“More people are travelling month on month, despite the oil and gas crisis and the impact inflation has had on the cost of living.

“The tourism sector is so strong right now. If people are cutting costs, they are certainly not doing it on travel expenses.”

He was speaking on the sidelines on the opening day of the event, taking place until Thursday, May 4, at Dubai World Trade Centre.

Booking.com’s data also showed people were not prepared to compromise on other aspects of their travel either.

“You might think people would try to save money on the types of hotels they were staying in but that’s not the case at all,” he said.

“People are not downsizing on the types of hotels they are staying in when they travel, if anything they are staying for longer.

“We are seeing a strong resilience across the board as people are really keen on travelling again.”

Counting the cost of sustainable travel

His comments came as Booking.com released a report on sustainable travel habits at the conference.

Among the findings of the study was that 90 per cent of people in the UAE plan to travel more sustainably, over the course of the next 12 months.

It also found that more than half of respondents in the UAE (56 per cent) believed sustainable travel to currently be too expensive.

However, a similar number (54 per cent) said they would be happy to pay more to travel sustainably.

The same survey said the majority of UAE travellers (71 per cent) turn off the air-conditioning in accommodation when they go out, and that 46 per cent reuse the same towel multiple times.

More than 33,000 people took part in the survey across 35 countries.

Other experts at the event agreed that tourism and travel were in rude health right now.

“The general consensus globally is that everyone is still going to take that holiday,” said William Harley-Fleming, vice-president of operations for UAE firm JA Resorts.

“That’s despite the impact the pandemic had as well as geopolitical tensions around the world.

“There is a pent-up demand from people who want to make up for lost time and get travelling again.”

One trend that has emerged in recent months is people booking holidays closer to the time they want to travel, he said.

“Less people are booking 12 to 18 months in advance than before,” he said.

“We’re seeing many more people booking three to six months before they travel, we are seeing booking windows being reduced significantly.”

Post-pandemic travel has seen a number of new markets emerging, while other markets have increased their presence.

Rise in Russian visitors

One market that is having a keen impact on tourism in the UAE are those coming from Russia.

“The Russian market has always been strong in the UAE and we are starting to see that come through again,” said Mr Harley-Fleming.

“Obviously there are those who come on holiday but we are also seeing an increase in Russian residents coming in and using our food and beverage outlets here.”

Only last month, The National reported how the Russian market had recently gained a significant presence on Dubai’s property scene.

This had played a significant part in creating a property shortage in the emirate, estate agents said.

Another hot topic of discussion on the opening day of the travel conference was the continued demand to combine working remotely with taking a holiday.

“We’re seeing a lot of people coming in for a business trip for a few days, do the work and then spend the rest of the time having a family holiday,” said Mr Harley-Fleming.

The practice was so common now that it even has its own name, said another expert speaking at ATM.

“There’s a huge amount of growth in that area, we call it the 'bleisure market', when people mix business with leisure,” said Haitham Mattar, managing director in the Middle East, Africa and south-west Asia for IHG Hotels and Resorts.

“People are extending their business stays and bringing family along.

“If someone has a three-day work trip they might extend it to the weekend and spend that with their family. It works out affordable for business travellers because the company pays for your airline ticket.”