The travel and tourism market in the UAE is predicted to reach $17 billion by 2025, with the value equally split between hotels and airlines, a new research said.
Dubai has established itself as a global destination for leisure travel, with more than 75 percent of the travel group composition being families and couples.
“The UAE residents are expected to go for more travel trips this year, driven by the combined effect of pent-up demand and receding fears of the pandemic,” said the research by RedSeer Consulting, a global consulting firm specialising in online services.
Post-pandemic, a new trend is emerging with more and more tourists preferring the natural environment and adventurous tourism as they seek to lessen inter-human contacts, the study said.
“The travel sector in the UAE is poised for a further strong rebound due to the pent-up consumer demand and openings of more markets,” Akshay Jayaprakasan, engagement manager at RedSeer, told Arabian Business.
“An aspect to consider for firms looking to drive and derive value from this wave of interest is that people are now more cautious of the social and ecological impact of travelling and will prefer flexible bookings and forms of tourism with lesser inter-human contact,” he said.
The study has also shown that travellers are increasingly opting for luxury hotels post-pandemic due to safety reasons.
“Post pandemic, the pent-up demand for travel led to recovery that inclined more towards luxury hotels. As much as 60 percent of travellers stayed in 5-star hotels and 27 percent in 4-star properties in 2021,” RedSeer said.
The corresponding figures in 2020 were 54 percent in 5-star hotels and 23 percent in 4-star hotels.
The study also said an overwhelming majority of UAE tourists now take trips for relaxation.
GenZ travellers are keen on sports and adventure tourism as well, it said.
“More and more travellers are now opting for leisure stays than micro-holidays – multiple short holidays,” the study said.
RedSeer said Expo 2020 Dubai has played a major role in accelerating recovery of flights and hotel bookings in UAE, especially from the second half of last year.
“Dubai registered more than 10 million visits and 31.5 million hotel room nights’ bookings, accounting for one percent of global hotel room bookings in 2021,” the study said.
The study also said uncertainty about future travel restrictions and quarantine requirements is leading to a strong preference for flexible hotel and airline bookings, with the option of refunds.
Another post-pandemic trend in travel in the UAE is a surge in domestic tourism, as travellers are still wary of long-distance travels.
“Even when travellers were crossing borders, they were not going too far afield,” RedSeer said.
The study said travellers were also more spontaneous in planning their trips of late, unlike the pre-pandemic trend of advance planning on locations and travel dates.
The RedSeer research also revealed that the social and ecological impact of travelling has become much more important in recent months, with tourists becoming more considerate in their behavior during holiday trips.
The post-pandemic rush for travel has also led to a massive jump in online bookings for airline tickets and hotels.
“The UAE, where the online booking penetration was already high during the pandemic period, continues to witness a significant hike in this mode of bookings,” the study said.
Travel market in the Emirates has seen strong rebound in 2021, reaching pre-pandemic levels in the second half of the year, the study said.
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