TRIGGERED BY CURIOSITY

 

RITIKA SHARMA / Emirates Business

Ali Al Baker, a economic analyst , oil and gas financial planner and the publisher of Curiosity Middle East (ME), a high-end travel industry oriented publication, has voiced much-regarded opinions about various topics pertaining to economy of the region.
With strong and well-rounded business-development expertise along with in-depth understanding and experience of varied industries, especially the luxury travel market in the region, Al Baker is known for his highly analytical views about the progress of nations as economies.
From tourism to real estate and from oil price fluctuations to social networking sites — Al Baker is known for his extensive knowledge across a cross section of industries in Middle East. His comments are highly regarded for their insights.
Al Baker, who comes to UAE more than often and calls it his second home, talks to Emirates Business about the prospects of tourism sector in UAE and Saudi Arabia. We speak to him, to understand more about GCC economy, the impact of growing travel sector and the role UAE plays in the overall development.

Excerpts from the interview:

How do you see Gulf Cooperation Council (GCC) as a luxury tourism destination? What are your views about UAE in particular?
Over the past decade, the GCC, and UAE in particular, established itself as the next frontier in luxury travel for the affluent. Marrying innovation with tradition, the region continues to grow as a top luxury destination.
According to World Trade Organisation (WTO) estimates, outbound tourism from GCC, including Meetings Incentives Conference and Exhibitions (MICE) and luxury tourism industries, is worth US$19.06 billion with around 37 million tourists.
A total of US$182 billion was spent on international luxury travel last year and more than US$1000, per night was spent by luxury travellers from the UAE, India, Kuwait, Brazil, Canada and China.
Also in 2015, 25 percent of Middle East and North Africa (MENA) residents chose to fly first or business class while travelling, 17 percent of residents spent between US$3,000 and US$5,000 9 percent spent
between US$5,000 and US$7,000 and 14 percent spent more than US$7,000 on a family holiday. The region registered a 9 percent growth in outbound travel numbers last year, making it the fastest growing outbound market.
Talking about the UAE, in 2015 the country reportedly had 1,275 people with net assets of over US$30 million, accounting for US$225 billion of global wealth. The same year, the Middle East reported 5,975 people with net assets equaling US$995 billion. Dubai ranks in top spot as the preferred upscale destination offering the ultimate luxury shopping and experiences including outstanding hotels. These figures are indicative of the significance of luxury tourism in the GCC that will continue to remain strong.

How do you look at the
tech-evolution in tourism
industry of ME?
Technology is a huge priority for the new generation of travellers as it continues to change the rules of hospitality industry like never before. Travel consumers today want instant and seamless connectivity across all platforms, mobility, flexibility and easy real-time access to information, speedy and efficient bookings, fast check-ins and check-outs, up-do-date in-room entertainment as well as smart dining, leisure and business solutions. According to industry reports online travel market is forecast to almost double in value within the next two years, rising from US$18billion to US$35 billion by 2018.
Hotels have to keep pace with these latest trends, no matter how expensive they are. Strong presence on
mobile (digital and social) technology is the key to
acquire and retain new
generation of travellers.

Are you looking at some additions or changes in Curiosity ME in coming years?
Curiosity ME is a high-end prestigious publication owned by H.E. Sheikh Mohammed bin Faisal Al Qassimi and is
targeted at the entire gulf region. Given our strong digital and print reach, we offer a fabulous platform to promote and position brands in GCC with a special focus on the UAE and Saudi Arabia.
We have just introduced the Arabic print edition at the Arabian Travel Market 2016 in Dubai and will shortly be launching our Arabic
website. In addition, we are building a strong presence on social media networks with a wide reach on
Facebook, Instagram, Twitter, Snapchat and YouTube. We love our audiences and our news is tailored to suit their tastes and preferences. An essential element of our platform is first-hand reviews based on
experiences.

How well placed do you think GCC is for entrepreneurs and small scale businesses?
I think, GCC has shown amazing growth and potential in terms of
entrepreneurism. And the trend has recently picked up momentum in the region as we have started seeing growing number of incubators in all GCC countries with strong endorsement from the authorities. This shows that more startups are on the way. Also, commendable are countries such as the UAE where it is a lot easier to set-up a new business given the efficiency and pace of procedures.
Major factor, I think, is the advancements in technology particularly
e-commerce and social media that helped in removing geographical
borders while reducing marketing costs. It allowed people to reach new markets, connect and share ideas, while conducting business online that resulted in a much broader customer base. Needless to say that more than 60 percent of the population in the region is between the age of 18 and 29 years, who are considered to be the drivers in this sector.

Please share your views on the ongoing oil price fluctuations and its
impact.
The fluctuations in oil prices have strongly impacted the local and regional economy as we can see a slowdown in terms of spending and
foreign investments. It has resulted in less travel for international visitors. Business tourism has been affected too as companies are tightening their budgets and therefore corporate travel is slower than last year.

How do you think Saudi Arabia and UAE can
collaborate in tourism?
Saudi Arabia and the UAE have been collaborating very well on the tourism front. About 1.5 million Saudi tourists visited Dubai in 2015 and this number is expected to reach 2.5 million by 2020. The figures are much higher for the country as a whole. Moreover, now that Saudi Arabia is ready to open up to tourists as part of 2030 Vision, it will boost visitor numbers from the UAE in addition to regular business and religious tourism.

How often do you visit UAE? What others are you preferred
holiday destinations?
I do visit the UAE quiet often as I am actively involved in various business forums and events. Culturally speaking, I just love the pulse and sophistication of Dubai. It is the beating heart of the Middle East offering the very best in terms of business and tourism infrastructure and attractions.Some of my other preferred
holiday destinations are Salzburg Austria , Newport Beach California, Miami and Italy.

What major changes are you
expecting in the regional hospitality industry as Expo 2020 nears?
The Expo 2020 was expected as His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai is a visionary and he saw this coming before anybody else. This has put the entire region on
creative mode and got the neighbouring countries working – Qatar is hosting 2022 FIFA World Cup and Saudi is working on the new 2030 vision.
This will open up investments and more attractions and events will come on board to be aligned with these new opportunities. Dubai Expo 2020 is a milestone in the history of the country, but it will leave behind a legacy of outstanding infrastructure, unique attractions and spectacular
facilities that will boost the tourism sector tremendously.

How do you think ‘robotics’ can fit into the tourism industry?
No doubt intelligent machines such as robotics and drones are growing and becoming increasingly commonplace as their cost collapses. I think there are two aspects of this subject.
First:
Robotics can make life easier by processing faster and reducing waiting time and frustrations.
Robots can also be easily tailored towards a need / a chore with no added training cost.
These can give the same consistency which humans lack after long hours.
Second:
In the hospitality industry you can use robots to extent; however you need that human interaction and touch. We see a more ‘Blended Workforce’.
Hotels will also have to know more about their customers. And concierge services will have to advance to new levels, delivering on the demands of guests long before they arrive.

Through Curiosity ME, what are you primarily focusing on?
Curiosity Middle East has been developed to serve as a comprehensive travel and lifestyle information resource to both trade professionals as well as direct consumers.
We are reaching out to both inbound and outbound luxury providers and seekers – be it destinations, hotels, tour operators, art, retail, technology or any other related sector. It will therefore serve as a powerful tool for brands looking to tap into the market.