Travel and Tourism in the UAE to 2018

Synopsis

The Travel and Tourism in the UAE to 2018 provides detailed market analysis, information and insights, including:

• Historic and forecast tourist volumes covering the entire travel and tourism sector in the UAE
• Detailed analysis of tourist spending patterns in the UAE for various categories in the travel and tourism sector, such as accommodation, sightseeing and entertainment, foodservice, transportation, retail, travel intermediaries and others
• Detailed market classification across each category, with analysis using similar metrics
• Detailed analysis of the airline, hotel, car rental and travel intermediaries industries

Executive summary

The UAE’s travel and tourism sector performed significantly well during the review period (2009–2013) with overall growth in domestic, international and outbound tourism. The main factors for tourism growth were government initiatives and continuous efforts to promote country’s travel and tourism on both the domestic and international levels. Timetric expects the travel and tourism sector to continue to grow over the forecast period (2014–2018) supported by government’s significant efforts to promote tourism, develop tourism infrastructure, and participate in international events and promotional campaigns in key source countries such as the UK, the US, Russia and Germany, and emerging countries such as India and China.

Scope

This report provides an extensive analysis related to the tourism demands and flows in the UAE:

• It details historical values for the UAE's tourism sector for 2009–2013, along with forecast figures for 2014–2018
• It provides comprehensive analysis of travel and tourism demand factors, with values for both the 2009–2013 review period and the 2014–2018 forecast period
• The report provides a detailed analysis and forecast of domestic, inbound and outbound tourist flows in the UAE.
• It provides comprehensive analysis of the trends in the airline, hotel, car rental and travel intermediaries industries, with values for both the 2009–2013 review period and the 2014–2018 forecast period.

Key highlights

• The UAE is a federation of seven independent states – Abu Dhabi, Ajman, Fujairah, Ras al-Khaimah, Dubai, Sharjah, and Umm al-Quwain – each with its own distinct tourism offerings. According to the United Nations World TourismOrganization (UNWTO) report in 2013, Dubai and Abu Dhabi were leading destinations in terms of numbers of tourist arrivals to the UAE in 2013. Total tourism revenue in Dubai for the first nine months of 2013 increased by 17.1% over 2012, reaching AED15.3 billion (US$ 4.1billion) in 2013.
• International arrivals were the major contributor to the UAE’s tourism sector, with total inbound tourism expenditure recorded at AED37.1 billion (US$10.1 billion) in 2013, compared to domestic tourism expenditure of AED24.1 billion (US$6.5 billion) in the same year. International tourist arrivals were also higher, at 12.4 million, than the domestic tourist volume of 7.2 million in 2013.
•  Domestic tourist volumes in the UAE increased from 5.9 million in 2009 to 7.2 million in 2013, at a review-period CAGR of 5.01%. The growth can be attributed to a rise in disposable income due to the country’s growing economy and improved domestic tourism focus. Shopping is an especially important attraction for domestic travel. Dubai, the most popular destination for domestic tourists, is mainly visited for shopping purposes.
• International arrivals to the UAE during the review period recorded a CAGR of 8.05%, with inbound tourist volumes increasing from 9.2 million in 2009 to 12.4 million in 2013. Inbound tourist expenditure also increased from AED26.3 billion (US$7.1 billion) to AED37.2 million (US$10.1 billion), at a CAGR of 9.07%. The growth in international arrivals and expenditure can be attributed to efforts by the UAE government to promote tourism in Dubai especially, as it is the main destination for 88% of international visitors.
• The volume of outbound tourists is expected increase at a CAGR of 8.09% to reach 6.4 million by 2018. The expatriate population is expected to travel back to their home countries, with relaxed visa regulations. Most growth will come from the expansion of low-cost airlines, and the addition of new routes combined with increased income from upcoming Emirates such as Ras al-Khaimah.
• The UAE’s Airline market performed significantly well during the review period, with total revenue increasing at a CAGR of 17.40% from AED48.2 billion (US$13.1 billion) in 2009 to AED91.5 billion (US$24.9 billion) in 2013. Robust growth was recorded in the revenues of LCCs at a review-period CAGR of 30.31%, which drove the market’s growth. The number of seats sold by LCCs also increased at a CAGR of 27.65%, as Flydubai and Air Arabia established themselves in the market. A main driver of airline market growth was the increase in passenger numbers and aircraft movements at Dubai International airport, the world’s second-busiest airport by international passenger traffic in 2013, according to the Airports Council International (ACI).
• The UAE’s hotel market performed well during the review period, as total hotel revenue increased from AED18.5 billion (US$5.0 million) in 2009 to AED36.7 billion (US$9.9 billion) in 2013, at a review-period CAGR of 18.56%. The number of hotel establishments rose from 577 in 2009 to 723 in 2013. Increased demand for accommodation as a result of rising inbound and domestic tourism, increased in spending power, and the hosting of international events were the main growth drivers in the hotel market.
• Timetric expects the car rental market in the UAE to record a forecast-period CAGR of 9.24%, rising from AED835.0 million (US$227.0 million) in 2013 to AED1.3 billion (US$354.0 million) in 2018. The average rental length is expected to increase from 5.0 days in 2013 to 6.19 days by 2018. The expected growth can be attributed to the projected increase in international and domestic tourist volumes, and an increase in online car rental companies offering cost-saving packages.
• The travel intermediaries market value recorded a review-period CAGR of 7.98% to reach AED73.2 billion (US$19.9 billion) in 2013. The online travel market in the UAE recorded a CAGR of 27.27%, whereas the in-store market value only increased at a CAGR of 5.69%. The online channel’s growth can be attributed to high internet penetration rates, and the growth of online travel agencies during the review period.

Reasons to buy

• Take strategic business decisions using historic and forecast market data related to the UAE's travel and tourism sector.
• Understand the demand-side dynamics within the travel and tourism sector in the UAE, along with key market trends and growth opportunities.