Family Tourism In Dubai
Research note says sector accounts for 12.5% of global tourism market
Dubai: Family tourism has emerged as a major segment of the Islamic economy, accounting for as much as 12.5 per cent of the US$ 1.07 trillion global tourism market in 2012, Dubai Chamber of Commerce and Industry has stated in its latest research note based on Thomson Reuters data.
The size and potential of this market can be estimated from the fact that it is larger than the world’s largest conventional tourism market, the US, which is only 11.4 per cent of the global market. The report has been released as part of the preparations for the 10th World Islamic Economic Forum (WIEF), scheduled to be organised by Dubai Chamber and the WIEF Foundation in Dubai from 28-30 October 2014.
“Family tourism is one of the most vibrant areas of the global tourism industry and a key element of the Islamic economy. With Muslim travellers constituting a major segment of the global tourism traffic, the priorities of families have become critical to tourism industry’s growth and have redefined the focal areas for tourism activities,” said H.E. Abdul Rahman Saif Al Ghurair, Chairman of Dubai Chamber .
“The findings of the Dubai Chamber report are of much significance in the light of the Dubai Capital of Islamic Economy initiative, launched in 2013, which has identified family tourism as an important pillar and a major growth area. Dubai is strategically positioned to become a centre of family tourism as it aims to become the capital of Islamic economy and builds its tourism infrastructure to create family oriented hospitality services and facilities in accordance with Islamic practices,” Al Ghurair added.
Highlighting the potential for the UAE market, the Dubai Chamber report says the UAE is ranked first on the Travel and Tourism Competitiveness Index 2013 in the Organisation of Islamic Cooperation (OIC) category.
The UAE is positioned high in the new emerging travel market since family values are embedded in the UAE culture. In fact, the country ranked second globally based on criteria set by Crescent rating, a leading Muslim travel rating organization based in Singapore, receiving a rating of 7.0, the report states. Saudi Arabia and Morocco also figure among the top global destinations with a rating of 6.5 and 6.4 respectively.
Meanwhile, the highest rating of 8.4 was awarded to Malaysia; which has helped the country attract over 170,000 visitors from the GCC alone in 2013. However, the report points out that unlike Malaysia, the UAE is both a top source of Muslim tourists, as well as a top destination, which naturally places it in a great position to become a hub for the global family-travel segment. Notably, Middle East and North Africa (MENA) states account for seven of the top 10 family tourism friendly destinations among the OIC nations.
According to the report, the Gulf Cooperation Council (GCC) nations contribute as much as 31 per cent of the total spending by travellers in tourism related activities. This is despite the relatively low population in the region, which makes up just 3 per cent of the global Muslim population.
Saudi Arabia is also one of the top source markets for family tourism, accounting for US$ 17.1 billion in spending in 2012, the Dubai Chamber report said. While the UAE follows with spending worth US$ 10.1 billion, travellers from Kuwait accounted for US$ 7.4 billion in spending. Interestingly, the report has identified Iran as the leading source market in the Middle East with US$ 18.2 in spending by its travellers.
Citing recent studies related to the Islamic economy, the Dubai Chamber report shows that family tourism has grown in value from US$ 137 billion in 2012 to US$ 140 billion in 2013, and is expected to surpass US$ 181 billion by 2018. Driven by population growth in Islamic nations and the healthy economic performance of these economies, industry experts forecast that family tourism sector will enjoy solid growth of 4.79 per cent annually until 2020 – higher than the global average of 3.8 per cent growth – reflecting its growing significance in the Islamic economy.
About the 10th WIFE:
The 10th World Islamic Economic Forum (10th WIEF) will be convened in Dubai, United Arab Emirates, a cosmopolitan metropolis that has grown steadily to become a global city and a business and cultural hub of the Middle East and the Gulf region.
The 10th WIEF is a high level platform for leading global government leaders, captains of industries, academic scholars, regional experts, professionals, corporate managers, policy makers, innovators, business leaders and investors to network and discuss opportunities for business partnerships in the Muslim world. The Forum will address a myriad of current economic and business related issues with the objective of generating innovative and creative solutions to transform the global economy and promoting business collaborations.
The Forum is expected to attract more than 2,500 participants from all around the world. It is in collaboration between the WIEF Foundation, Dubai Chamber of Commerce & Industry and Dubai Capital of Islamic Economy and will be held at the Madinat Jumeirah Conference Centre Dubai on 28 – 30th October 2014, with an arching theme ‘Innovative Partnerships for Economic Growth’ which seeks to position Dubai as a leader of global halal industries.