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UAE will witness highest
growth with total Russian tourism spend estimated to reach US$1.153 billion by
2023, followed by Saudi Arabia and Oman
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New
buyer forums and networking events at ATM 2020 to place spotlight on Russia’s
expanding outbound tourism market
Russian
tourists travelling to the GCC are expected to generate an estimated US$1.22
billion in travel and tourism revenue by 2023, an increase of 19% when compared
with figures from 2018, according to data published ahead of Arabian
Travel Market 2020, which takes place at Dubai World Trade Centre
from 19-22 April 2020.
The
latest Colliers
research commissioned by Reed Travel Exhibitions,
the organiser of Arabian Travel Market, predicts the UAE will witness the
highest growth, with total tourism spend by Russian visitors projected to reach
US$1.153 billion by 2023 and tourism spend per trip increasing 5% from US$1,600
to US$1,750.
Danielle Curtis,
Exhibition Director ME, Arabian Travel Market, said: “With the oil price
recovery, stabling of the financial markets and increased disposable incomes,
Russia, once again, represents a significant growth area for travel and tourism
revenue across the GCC as Russian nationals turn to the region for its
year-round sunshine, world-class hotels and resorts and fast-paced leisure
facilities and amenities.”
Building
on this, Saudi Arabia is expected to witness the second largest increase
closely followed by Oman, with total Russian tourism spend estimated to reach
US$28,659,600 and US$21,788,000 respectively, by 2023.
Following
recent reforms in the Kingdom, the introduction of tourism e-visas and the
on-going development of Giga projects including The Red Sea Project and Amaala,
Saudi Arabia is looking to capitalise on Russia’s growing tourism spend.
“Saudi
Arabia’s Giga Projects, in particular, are aimed to cater to the luxury segment
of the tourism market targeting high-net-worth individuals and Russia is
currently ranked fourth in the world in terms of the number of billionaires
residing in the country, with 303 Russians representing a total billionaire
wealth of USD$355 billion,” Curtis said.
Looking
at Russian outbound tourism figures, the country continues to be one of the top
10 source markets for the UAE, with 578,000 Russian visitors entering the UAE
in 2018 and this number is predicted to increase at a Compound Annual Growth
Rate (CAGR) of 4.2% to 688,300 by 2023, according to Colliers International.
Curtis
said: “Supporting this projected growth, Russia’s links with the UAE have
strengthened in recent years due to relaxed visa regulations for Russian
nationals and the introduction of additional airline routes, with flydubai
becoming the first airline in the Gulf to offer direct flights between the UAE
and Sochi earlier this year.
“Adding
to this, Emirates and Etihad Airways have also increased their flights between both
countries, with Emirates introducing a third daily flight to Moscow in 2018.”
The
research study by Colliers International found that while the UAE will account
for the majority of Russian arrivals in the GCC, Oman will witness the second
highest comparative growth at 4% - welcoming 13,000 Russian nationals by 2023.
Saudi
Arabia will closely follow with 17,100 Russian tourists expected to visit the
Kingdom by 2023, compared with 15,200 in 2018 - a comparative growth of 3.2%
“Higher
Russian visitor numbers will help support investment opportunities and economic
diversification, in line with the kingdom’s plans to target 30 million visitors
annually by 2030,” added Curtis.
Over
the last 27 years, Russia has been well represented at ATM, with the number of
visitors interested in doing business with Russia increasing 16% YoY between
2018 and 2019.
Adding
to this, as GCC travel and tourism companies and destinations look to attract a
larger share of the Russian market, ATM 2020 will introduce new buyer forums
and networking events which will explore the untapped opportunities that
Russia’s expanding tourism market presents while discussing how to attract and
cater to this key source market.
ATM, considered by industry professionals as a barometer
for the Middle East and North Africa tourism sector, welcomed almost 40,000
people to its 2019 event with representation from 150 countries. With over 100
exhibitors making their debut, ATM 2019 showcased the largest ever exhibition
from Asia.
Adopting Events for Tourism Growth as the
official show theme, ATM 2020 will build on the success of this year’s edition
with a host of seminar sessions discussing the impact events have on tourism
growth in the region while inspiring the travel and hospitality industry about
the next generation of events.
