Chinese Tourists Are Back, Dubai Needs A Way To Cash In
27.09.2023 - 13:07
/ skift.com
/ Josh Corder
Pre-pandemic, the cash-rich, travel-hungry Chinese tourist was a principal focus for Dubai, so much so that an entire “China Readiness” strategy was created. It included rolling out marketing campaigns on local social media app WeChat; the creation of a “Chinese Travelers Standards” training program for workers; a raft of signings with Chinese tour operators, and much more.
In 2016, the emirate announced visas-on-arrival for Chinese nationals. By 2019, China was Dubai’s fifth-largest source market with 989,000 visitors, a doubling in just three years.
The pandemic decimated these numbers, but they are gradually creeping back up. It started with 23,000 travelers from China in January, making it the 17th largest source market. By April, China broke into the top 10.
Visitor numbers through July put China as the eighth-largest source market with 328,000 visitors, a 311% increase.
Can this rebound keep going?
Peggy Li, CEO of sps:affinity, a Dubai-based consultancy, discussed the demands of modern Chinese travelers with Skift, and the ways in which Dubai must adjust its strategy.
For a while, Dubai was a prime location for status-seeking Chinese tourists. Home to the world’s largest mall, it is a shopping mecca, with a string of five-star hotels instantly recognizable to overseas travelers.
More recently, however, this “glitz and glamor,” as Li refers to it, has worn off for the new wave of Chinese travelers. This should prompt a shift towards other demographics, including corporate travelers.
“Dubai needs something more than just a lifestyle angle now. I think this bling of Dubai thing is slowly wearing off,” Li said. “Dubai can emphasize its place as the commercial springboard of the Middle East. Corporate guests will spend. Anyone asked to station in Saudi Arabia will come to Dubai at least once a month. Chinese are creatures of comfort, we need certain comforts. It’s not only alcohol I mean, it’s the shopping, it’s the food as well.”
Despite Li’s predictions, a report published earlier this year said Chinese are still coming to the region to shop.
According to the May 2023 report by the luxury consulting firm Agility, more than 20% of Chinese millionaires have intentions to travel to the Middle East within the next 12 months, primarily looking for deals on high-end goods.
Li still sees interest in shopping, but within China itself.
Domestic travelers have started to explore the country’s own developments, specifically Sanya on Hainan Island, which rivals Dubai in terms of shopping. Sanya is home to the third Kerzner-managed Atlantis hotel: Atlantis Sanya, which opened in 2018.
Li said: “Shopping has been one of the biggest draws to come to Dubai before…But China has its own tax-free zone now.