Luxury defines UAE hospitality sector

Ritika Sharma / Emirates Business

The UAE is fast cementing its position as a luxury destination, where tourists are willing to spend more on their holidays. Experts have been talking about exponential growth in luxury tourism in the country, and researches based on travellers’ booking and behaviour confirm the same.
A recent research by a travel data platform states that travellers to the Emirates are predominantly affluent. ADARA’s research reveals that travellers to this part of the world are not only rich, but they also tend to plan further in advance than the average global travellers.
Elizabeth Harz, President of Media, ADARA told Emirates Business, “UAE, and Dubai in particular, has branded itself
as a luxury city destination
and travellers to the region,
as our survey has found, are
affluent, organised and willing to spend money on selected luxuries and this includes
hotels.”
The research, which used ADARA’s insight into millions of travel actions every day, shows that travellers to the Middle East and North Africa (MENA) are more likely to be elite travellers, with 38 percent having travelled First or Business class in the last three months. They also spend a high rate on hotel rooms at US$230 per night and UAE hotels remain atop the list.
It is worth mentioning that UAE is expected to retain its position as a regional tourism leader, with the sector valued at US$31.8 billion (Dh116.7 billion) by the end of 2018.
Harz added, “Now, for the hospitality industry in UAE, the focus is on understanding the needs of luxury travellers to ensure a personalised experience. Marketers in Emirates should start working towards offering the right experience to the right customer at the time they want or need it.”
The luxury tourism sector is further expected to see a surge in the number of tourists by 2020 due to the Dubai Expo. The value of the combined economic activities of aviation and tourism sectors are expected to hit US$53.1 billion by 2020 and $88.1 billion by 2030, according to Oxford Economics.
“Dubai Tourism and the Government are focused on diversifying its brand image – aiming to be on top of mind with the masses. More mid-range hotels are being commissioned, more rail/metro links, family orientated attractions such as theme parks, museums, outdoor based amusements and parks etc. Dubai will always be aspirational as a brand, however its main objective pre/post Expo is to also showcase to the global community that it is a place that is accessible to all, in culture, accessibility/location and thought leadership through sustainability.”
“Financially it’s obvious to see how the city will benefit through the influx of visitors during the 6 months. However it’s all about how Dubai will maintain its legacy post Expo. How will other verticals beyond the travel industry thrive,” she added.