GCC outbound market set to increase in 2018

Travellers from the GCC forecasted to spend $94 billion by 2020

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DUBAI — The GCC is home to a vast number of nationalities and hence their preferences, tastes, the idea of an experience and values are so diverse. However, when it comes to outbound travel from the region, there appears to be focus on luxury travel with unique holidays and individual experiences becoming increasingly popular. Exploring the tremendous potential of the luxury travel segment from the GCC, the special 6th edition of the MICE Arabia and Luxury Travel (MALT) Congress organized by Dubai-based QnA International will bring together the movers and shakers of the luxury travel world.

Whether it is in the form of flying business, or first class, GCC outbound travellers are thought of as big spenders. So much so, that GCC outbound travellers are forecasted to spend a mammoth $94 billion by 2020, up from the $64 billion spent in 2015 according to Statista. Further, this figure is expected to reach $140 billion and $216 billion by 2025 and 2030 respectively according to same sources.

What could be driving the demand for luxury tourism? Predictive answers point to high net worth individuals (HNWI’s), strong currency and high spending power. But the travel and hospitality industry too provides another answer, and this is the development of different forms of luxury.

According to Gioia Valli, Head of MICE GCC, Switzerland Tourism, “the trend is to be more exciting, more adventurous, specifically for MICE & luxury traveller as they are looking for something new, something that is unique”

The luxury tourism sector will “Observe a further distinction between ultra-luxury and affordable luxury,” noted Marek Bukala, Director, ZanziResort, a sponsor of the 6thMALT Congress. However, there will also be a “Less ostentatious approach to guests within the luxury sector and halal tourism along with a personalized experience are necessary for catering to tourists from the GCC,” said Bukala.

To attract outbound tourism from the GCC, various sponsors of the MALT Congress agreed that certain service offerings need to be first established. For instance, Dag Kastensson, CEO, SNE Northern Europe reiterated that “Offering halal cuisine and space for religious practices,” is an important foundation on which to build services to attract guests from the GCC. Kastensson also added that the addition of “Time-efficient and daily non-stop flights to all Scandinavian capitals,” have dramatically increased accessibility for guests from the GCC.

Direct flights to most destinations are available from different GCC countries, and at the 5th MALT Congress it was revealed that, according to a Credit Suisse report, GCC nationals spend 260% more on airfare with up to 60% purchasing business tickets.

Boris Jablan, Owner and Executive Director, 3e Travel, DMC, Montenegro, also indicated that direct flights have increased the attractiveness of the Montenegro market to tourists as well as investors from the GCC, “The fact that Montenegro is a Mediterranean destination presents a huge marketing advantage, and the hospitality industry has improved to the high-quality standards of service necessary for luxury tourism,” Jablan explained.

The GCC outbound traveler does have a soft-spot for familiarities other than halal cuisine, and security. This is cultural resonance, and naturistic landscapes. As such, destinations located around the Mediterranean, and not too far away from the region, such as Turkey, tend to be hot options for travel. “Turkey, with its nature, deep history, cultural familiarity, and fusion of east and west, is a good destination for GCC travelers. We believe these are the qualities that the GCC traveler is looking for,” said Lale Eranil, Director, Cormep. — SG


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