Oman Sets Sights on Chinese Visitors with New Tourism Office

A shift towards experiential journeys, growing demand for premium travel options – Indians approach to travel is evolving, according to Mukul Sukhani, senior vice president of business development at Mastercard.

Marketers beware: Prior ways of marketing to Chinese consumers, including travelers, won’t work as well today because their preferences changed during the pandemic.

Looking to position itself as a leading tourism destination in the Middle East, Dubai has scrapped the 30 percent municipality tax on alcohol for what has been called a trial period of one year, till December 31. Also, tourists and expats will no longer need to pay a fee to secure a personal liquor license to purchase alcoholic beverages. However, an Emirates ID, or passport for tourists, will still be required. The change that came into effect from Sunday, was confirmed by Maritime and Mercantile International, one of the biggest alcohol retailers in the United Arab Emirates and a subsidiary of the state-owned Emirates Group.

In a bid to boost tourism’s contribution to the national gross domestic product to $122 billion a year by 2031, the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, launched the UAE Tourism Strategy 2031 on Friday. Eyeing an annual increase of $7.4 billion, the tourism startegy aims to attract new investments of $27.2 billion to the tourism sector in the country, and attract 40 million hotel guests in 2031. The strategy includes 25 initiatives and policies to support the development of the tourism sector in the country, according to the government media office. With the return of tourists, the United Arab Emirates’ tourism revenues surpassed $5 billion in the first half of this year.

Chinese travelers cite financial constraints over the last three years as the leading reason for not wanting to travel abroad even as China decided to end its zero-Covid policy by easing travel restrictions, according to a report.

Having witnessed a stronger than expected recovery in 2022, the Middle East could see international tourist arrivals return to pre-pandemic levels this year, according to the United Nations World Tourism Organization (UNWTO). Data from the UNWTO World Tourism Barometer noted that while all regions enjoyed significant increase in international arrivals in 2022 over the previous year, the Middle East recorded the strongest relative increase as international tourist numbers climbed to 83 percent of pre-pandemic numbers last year. “The region welcomed large events such as Expo 2020 Dubai and the FIFA World Cup in Qatar, as well as a highly attended Hajj pilgrimage in Saudi Arabia,” noted UNWTO in its report.  “UNWTO anticipates a strong year for the sector even in the face of diverse challenges including the economic situation and continued geopolitical uncertainty,” Secretary General Zurab Pololikashvili said. UNWTO noted that over 900 million tourists travelled internationally in 2022, which was double the number of those who travelled in 2021 though still 37 percent below 2019.

Dubai received 14.36 million international overnight visitors in 2022, growing 97 percent year-on-year from the 7.28 million tourist arrivals in 2021, according to the latest data published by Dubai’s Department of Economy and Tourism. In 2019, the city had welcomed a record 16.73 million international overnight visitors. The strong performance in 2022 features some noteworthy spikes in Dubai’s traditional key markets and strong growth across emerging markets. Dubai remained a first-choice safe travel destination for visitors from the city’s stronghold markets. Western Europe and Gulf regions each accounted for a 21 percent share of arrivals. The Gulf region in particular saw an exponential increase in their share of arrivals from 13 percent in 2021 to 21 percent last year. South Asia contributed 17 percent of total volumes while the Middle East and North Africa region contributed 12 percent, further reinforcing Dubai’s continued appeal to travelers from proximity markets. The Americas accounted for seven percent of arrivals while North Asia, Southeast Asia and Africa each contributed five percent and Australasia accounted for two percent.

Dubai has yet again revealed its plans to connect the city through flying taxis and expects to launch aerial taxi operations by 2026.

While airlines not running international flights at the pre-pandemic level could be a short-term bottleneck, Chinese online travel agency Trip.com Group believes the country’s outbound travel will start to pick up in the second quarter when flight capacity gradually recovers.

Despite a sluggish international travel market, the pace of recovery in the Middle East aviation market accelerated throughout 2022 and is expected to take off over the next 10 years with the region’s share of the global fleet set to expand. In its “Global Fleet and MRO Market Forecast 2023-2033,” global management consulting firm Oliver Wyman noted that the Middle East remains among the fastest-growing aviation markets in the world, with the regional fleet set to expand 5.1 percent annually over the next decade. The report further noted that the Middle East’s share of global fleet will grow over the decade from 4.9 percent in 2023 to 6 percent in 2033.  Meanwhile, the global fleet is projected to expand one-third by 2033, to well over 36,000 aircraft, with Oliver Wyman also anticipating a record number of aircraft deliveries over the next 10 years (despite current supply chain constraints). The Middle East fleet’s growth over the next decade will primarily be driven by the addition of narrow bodies. Historically, the Middle Eastern fleet has been primarily made up of widebodies. But moving forward, the report observed that narrow bodies will increase to 48 percent of the fleet from 39 percent, while wide bodies will decline to 48 percent from 56 percent.

Event organizers in Abu Dhabi will no longer be required to pay tourism tax. Hosting an event in Abu Dhabi had incurred a 10 percent tax per ticket sold. “For further support to the investment environment in the emirate of Abu Dhabi, it has been decided to exempt event organizers from the tourism fee of 10 percent on tickets sold,” a circular from the Department of Culture and Tourism — Abu Dhabi stated recently. The circular also said it is mandatory for event organizers to obtain event licenses in accordance with the regulations specified for this purpose. Event organizers are also required to declare the revenues generated from these events, submit supporting financial statements, and cooperate with revenue auditors or individuals designated by the department of culture and tourism to validate the accuracy of their declarations.

Good morning from Skift. It’s Wednesday, March 15. Here’s what you need to know about the business of travel today.