Top 10 trends to watch out for

Technology, luxury travel, family holidays and localisation are here to stay even as changing demographic and economic realities shape our markets

As the Arabian Travel Market (ATM) gets under way this month in Dubai, the industry will be looking at several trends that are having a profound impact across the world and how the Gulf region stands to benefit from them.

From freer travel to expo tourism and luxury travel to the China syndrome, here are 10 top trends to watch out for:

Visas made easier

Tourism authorities everywhere in the world are making it easier for tourists to enter their countries and the Gulf states are no exception.

In the UAE, the UK now offers super-priority visas at its application centres in Abu Dhabi and Dubai, while Emiratis can already use the electronic visa waiver, which offers them visa-free travel if they register online at least 48 hours before their departure to the UK, for a visit up to six months.

According to the Global Destination Index (GDI) report, compiled by the Pacific World, ease of visas is one of the factors for UAE seeing more events. Harsha Krishnan, Strategic Development Director at Pacific World, says: 'The exemption of Eastern European countries from UAE tourist visas has enabled meeting planners to consider Dubai as a more realistic and less complicated destination for their events in terms of logistics.'

Bahrain too has opened its doors, and now offers visas on arrival for 66 nationalities and three-month multiple entry visas for GCC residents and citizens of 102 countries under a new e-visa initiative.

Oman meanwhile is reportedly set to introduce a new e-visa system in an effort to boost tourism.

Halal and Islamic travel

Halal tourism is one of the fastest growing markets. Andy Buchanan, event director, Cacti Events, which is hosting the World Islamic Travel Summit in Abu Dhabi this October, says standard tourism is growing at 3 per cent annually but halal tourism is 'almost 6 per cent.'

The MasterCard-Crescent Rating Global Muslim Travel Index (GMTI) 2015 shows 108 million Muslim travellers spending $145 billion in 2014. This is expected to grow to 150 million travellers in 2020 spending $200 billion.

'As an outbound market halal is bigger than even China,' Buchanan says.

'The explosion in halal travel is driven by a young, travel hungry urban traveller who prefers to travel and spend their money with travel brands who accommodate their beliefs,' he adds.

The GMTI shows Turkey, Malayisa and the UAE took the top three spots among the Organisation of Islamic Cooperation (OIC) destinations for Muslim tourists in 2014, with the UAE also the highest ranked from the Middle East which had five destinations in the top 10.

Singapore topped the list for non-OIC countries which also included Thailand, UK, South Africa and France.

The China syndrome

With the euro in decline and the rouble not looking good, the world is looking at China to make up the numbers.

A prime example of China’s growing clout as a tourism force was when a 14,500-strong delegation from Chinese company Nu Skin visited Dubai on a incentive trip last year, setting a new record for corporate holidays in the UAE.

China’s outbound tourism market is growing at an annual rate of 9 per cent while tourism expenditure is predicted to grow to $1.8 trillion by 2030 from $260 billion in 2012, according to a report from the Boston Consulting Group and TripAdvisor.

Yogeesh Chandra executive vice-president - Hospitality, RateGain, says: 'The decline in the number of tourists from the CIS won’t worry Dubai since it is experiencing domestic growth due to ongoing preparations for Expo 2020. Dubai also is a gateway to Africa and is well positioned to capitalise on its location as a trading hub and its reputation as a safe destination.'

Expo tourism and Mice

Major events are a catalyst for development. Cedric Gaillard, general manager, Holiday Inn Abu Dhabi Downtown, foresees a massive growth in the UAE’s tourism and retail sector with Expo 2020 driving construction and infrastructure developments.

'Big events contribute to generating a buzz... this year’s Expo Milan has put Italy in the spotlight, contributing to growth of Mice business,' says Jestine Alfred, destination manager Pacific World. 'By 2020 Dubai is targeting 20 million tourists so the development won’t stop.'

Arabising of content

From websites to apps that tell you the prayer timings and closest halal restaurants around the world, content marketing is turning to the language of the Arabic-speaking population in the region.

Emmanuel Durou, Telecommunications, Media and Technology (TMT) director at Deloitte in the Middle East, says: 'For years we have talked about Arabic content comprising less than one per cent of the total internet content. But, this figure comes in sharp contrast, as the size of the Arab speaking population is greater than the entire US population.'

He notes that the quality of Arabic content offline and online has improved, driven by significant investments from regional content players such as MBC and OSN. He credits start-ups such as Istikana who are attempting to create Arabic content hubs and portals.

Family travel

The Gulf has always been known for its family travel, and at the ATM, the Mexico Tourism Board is the sponsor of the Arabian family travel theme.

Family-centric travel is said to account for more than 12.5 per cent of the $1.07 trillion global tourism market, making it a key topic to focus on, the ATM organisers say.

Also, a recent report by WealthX shows that 90 per cent of the world’s ultra-high-net-worth population ($30 million threshold) is married with two children so there is a good reason to be hospitable to large groups of mixed ages travelling together.

Luxury travel

Luxury travel is becoming more accessible and nuanced. You can rough it out in luxury, be adventurous in style or just soak your feet in it.

A 2014 YouGov report, which says that Middle East and North Africa (Mena) luxury travellers spend around $8,310 per trip, highlights the appeal of the region as a global luxury hotspot.

In the survey, 69 per cent respondents agreed that luxury travel is defined by the availability of five-star accommodation as a minimum standard. They had each taken an average of 1.9 luxury holidays over the last 12 months, meaning that the region’s preponderance of upscale hotel properties is perfectly positioned to capitalise on growing demand from high net-worth travellers eager to discover new destinations.

'With no universally accepted definition of what luxury travel is, brands need to truly understand what luxury means to their customers in order to be successful,' says YouGov’s Travel and Leisure Research Director, Scott Booth.

The trend includes the meetings, incentives conferences and exhibitions (Mice) sector. According to the GDI, interest in high-end exclusive activities is growing 'especially in destinations that fit the stereotype of luxury'.

Technology taking over

Technology touches everything today but the question is how to make it work for you. Yogeesh Chandra of RateGain says: 'Technology is our friend. The booking process has evolved and the transparency that has come with it has made decision-making more efficient and less regretful.

'The cell phone is now a point of sale. Different business models like OTAs (onloine travel agencies), meta search, reverse meta, flash sales, review sites and selling of distressed inventory through apps, are helping customers make informed decisions in no time.'

Social media too is key. Daousser Chennoufi, partner, Hues Hotels & Resorts, says: 'We definitely do search engine optimisation, as 68 per cent of travellers last year went online to research their vacation options. Social media integration for marketing purposes has been one of the best practices in the travel sector as well.'

At Azura Boutique Retreats, which have recently made their Middle East foray with Gulf Reps, technology aids personalisation with trade. Stella Bettany, co-owner Azura Boutique Retreats, says, 'Our reservation manager is on Skype so if our new tour operators have any questions they can answer them.'

According to Destinia.com’s Middle East travel trends for 2015, technology will play a key role in Middle East travel for this year. Amuda Goueli, CEO and cofounder of Destinia.com, says: 'More than 40 per cent of online travel bookings in the Middel East and North Afdrica (Mena) region, through Destinia.com are made through mobile devices.'

Rewards

Travel agents need to find a way to coexist with loyalty rewards, as almost every major card issuer has a loyalty programme that is travel related. Rather than take it as a threat, Chandra says: 'Travel agents have long helped hotels get business that would not have come to their site directly. Interestingly, as hotels have tried countering the pull towards OTAs with loyalty programmes, OTAs too have developed their own loyalty programmes.'

Cluster tourism

In mature destinations, visitors are offered not just one package but many mini ones – cruise tours, medical tours, spa breaks. Combine this with the new-found awareness about community-centric living and it is clear that a visitor may not be able to visit destinations during the same trip.

Chennoufi says: 'Cluster tourism has become more common since the needs of the consumer have changed. Some tourists prefer to combine two destinations in one trip in order to save money, and therefore they may not have enough time to see all of the country but just those attractions that were selected for them.'

By Shalini Seth