·
Recovery
of Russian rouble, UAE visa on arrival, drive growth.
·
Russia
remains a top 10 source market for Dubai, arrivals up 98% in 2017
The
number of Russian tourists travelling to the GCC in 2020 is expected to be 38%
higher than the arrival figures recorded for 2016, according to data published recently
by Arabian Travel Market 2018, which takes place at Dubai World Trade Centre
from April 22-25, 2018.
Looking
at the economic drivers, the value of the Russian rouble is stable and firming
gradually, helped by Russia’s decision to join OPEC and cut oil production,
which has supported an oil price recovery to over $60 per barrel, while forecasts
for 2018 put oil at an average of $57 per barrel, a 5.6% increase over 2017.
Over the last 25 years,
Russia has been well represented at ATM, with exhibitors including Moscow City Government, National Tourist Union and the city of St
Petersburg. Russian visitors to the exhibition increased 17% YoY between 2016
and 2017 and 9.4% of total visitors last year were interested in doing business
with Russia.
Simon
Press, Senior Exhibition Director, ATM, said: “Traditionally, the GCC has
always been popular with Russian tourists but over recent years, we have
witnessed some fluctuations in their arrival rates across the GCC, which was a
reflection of volatility in the financial and energy markets. As those factors
begin to steady, we are seeing more and more Russian visitors arrive and we
expect this to continue.”
Russia’s
links with the GCC strengthened in 2017 with the introduction of additional
airline routes, visas on arrival in the UAE for Russians, a new generation of
leisure attractions, retail destinations and a broad range of hotels and
resorts right across the GCC region.
“An
increase of 38% on 2016 arrival figures provides a significant boost to the
regional tourism industry and is supported by a number of stakeholders, from immigration
initiatives, to the region’s hotels, its F&B venues, resorts, theme parks
and malls, which all appeal to Russian visitors,” he continued.
Commissioned
by ATM, ahead of its 25th edition, the research study by Colliers
International found that while the UAE will account for the majority of Russian
arrivals, Oman will actually experience the highest Compound Annual Growth Rate
(CAGR), at 9.2%. Both countries eased visa requirements for Russian nationals
in 2017, in line with their respective tourism strategies. The Colliers research
also revealed UAE visitors to Russia were forecast to increase by 15% in 2018, compared
to 2016, as Russia hosts the World Cup.
Already
feeling the benefits, in the first three quarters of 2017, Dubai reported a 98%
year-on-year increase in the number of Russian arrivals, and the country is one
of the emirate’s top 10 source markets. Further supporting the demand, flydubai
twice extended its Russian network in 2017, adding flights to Makhachkala, Voronezh
and Ufa, and daily flights to a second airport in Moscow - Sheremetyevo
International.
With
equal appeal to business visitors, Dubai was named the most popular Russian
real estate investment destination in 2016, driven by the emirate’s market
supply of off-plan luxury properties.
Elsewhere
in the UAE, Russian hotel guest arrivals increased 41% in the first quarter of
2017, according to Abu Dhabi TCA and Ras Al Khaimah, which recorded a 10% YoY
increase in international arrivals in the first half of 2017, Russia was the
second largest source market last year, with arrivals from the country up 84%
YoY.
Despite
the UAE and Oman leading comparative growth, Saudi Arabia is predicted to
witness an increase of at least 20% in Russian visitors to the kingdom by 2020.
Press
added: “Russia is once again turning to the GCC for its year-round sunshine,
world-class hotels and resorts and fast-paced leisure and safe investment
landscape.”
ATM
2018 has adopted Responsible Tourism as its main theme and this will be
integrated across all show verticals and activities, including focused seminar
session, featuring dedicated exhibitor participation.
ATM
– considered by industry professionals as a barometer for the Middle East and
North Africa tourism sector, welcomed over 39,000 people to its 2017 event,
including 2,661 exhibiting companies, signing business deals worth more than
$2.5 billion over the four days.
Celebrating
its 25th year, ATM 2018 will build on the success of this year’s
edition, with a host of seminar sessions looking back over the last 25 years
and how the hospitality industry in the MENA region is expected to shape up
over the next 25.
