UAE and KSA to top inbound tourism rates
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The UAE and Saudi Arabia will experience some of the world’s strongest inbound tourism growth over the next five years, according to new research released at the WTM Vision Conference being staged in conjunction with Arabian Travel Market.According to Euromonitor’s Travel and Tourism Global Overview report, Saudi Arabia will boast a compound annual growth rate of 12.3% for arrivals through to 2015, which will result in an additional 9.3 million visitors to the country. This makes Saudi Arabia the fifth largest country in terms of absolute arrivals growth over the forecast review.This growth is being driven mainly by the religious tourism to Mecca and Medinah, supported by infrastructure developments in air transportation and travel accommodation. Saudi Arabia also continues to be one of the most economically stable markets in the Middle East thanks to its status as the world’s leading oil exporter. It is investing heavily in economic development, including the creation of six mega cities that will help generate employment, attract investment and drive business tourism.The report predicts the UAE will see an annual increase in arrivals during the forecast review period of 6.9%, resulting in 3.6 million new arrivals, being the 14th largest country in terms of absolute arrivals growth over 2010-2015.Significant infrastructure developments are taking place in the UAE which are expected to contribute significantly to the growing number of arrivals to the country. Dubai is also set to seal its position as a global air transportation hub upon the opening of the world’s largest airport, Al Maktoum Airport, with a capacity of 160 million passengers a year. Euromonitor International Travel and Tourism Industry analyst Nadejda Popova claimed that in a climate of regional political and economic uncertainty, Saudi Arabia and the UAE have been capable of dealing with challenging external events as demonstrated by the resilience of their respective travel and tourism industries, partly thanks to intra-regional travel, with Saudi Arabia also benefiting from robust religious tourism demand.Popova added the expansion of the hotel sector in the region could result in an oversupply as supply outpaces demand, which would impact rates and RevPAR. Positives for the region are its strong air transportation sector and the 2022 FIFA World Cup taking place in Qatar. The “contagion of instability” and oil price rises are potential weaknesses, although Popova did point out that the UAE itself has remained “stable,” during the region’s recent political and civil unrest. She also said there will be an absolute increase in outbound trips from the UAE of two million between 2010 and 2015. World Travel Market exhibition director Simon Press said: “The Middle Eastern tourism industry should take heart from these generally positive findings.”Euromonitor International’s research shows the region’s travel and tourism industry is a strong position and will grow in global importance.”
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