As WiT Middle East prepares to return to Dubai on April 7, it is clear the winds of change blowing through the region’s travel market have intensified with the opening up of Saudi Arabia in full swing, the continuing migration of consumers to mobile and, of course, the building up to WorldExpo 2020 in Dubai.
A slew of initiatives has been put in place by Saudi Arabia under its Vision 2030 programme, which includes freeing up of visa regulations, pumping in hundreds of billions of dollars in tourism investments and infrastructure development, ramping up of tourism and promotional activities to tell the world about its attractions and giving travellers reasons to visit.
The Saudi government wants tourism to contribute 10% to GDP by 2030 (from the current 2%), which means attracting 100 million annual visits, up from about 40 million currently, creating more than $100b of tourism spending and attracting 30m pilgrims. You can thus imagine the frenzy on the ground as this kingdom of about 33m, 60% of whom are under 35, prepares for its new future.
Tarique Khatri, EVP Centre of Excellence, Seera Group, the leading Saudi Arabian-based travel brand founded more than 40 years ago, flagged the opening up of the kingdom as a leisure destination as the most exciting development happening in the region.
“The recent launch of tourist e-visas for leisure travellers marks a significant milestone for KSA and the wider region and with 350,000 issued in Q4 of 2019. The trend is certainly going into a positive direction for Saudi Arabia. With the focus on Saudi Vision 2030 to boost the tourism industry by promoting both inbound and outbound travel services, Saudi Arabia is positioned to become one of the world’s leading tourism destinations.”
In preparation for the future, Seera has been transforming fast, changing its name from Al-Tayyar and launching the kingdom’s first DMC (destination management company), Discover Saudi, a SR500 million ($133 million) investment. Currently, only two percent of inbound trips are for leisure and Discover Saudi will offer curated experiences for international and domestic travellers as well as services for Hajj and Umrah pilgrims and business travellers.
Stuart Crighton, CEO and founder of Cleartrip, also singled out the “opening up of the Saudi domestic travel market and investments that will position the kingdom as one of the most unexplored tourist destinations” as one of the most exciting developments in the region.
Beyond Saudi Arabia, Wego, a leading Middle East travel brand, is seeing high growth rates across the region. CEO Ross Veitch said, “At Wego, we’re seeing increased interest in the markets of the MENA region from global online travel players looking to tap into the high growth rates, high travel frequencies and large basket sizes that are typical of the MENA region.”
It is also seeing online travel bookings continuing to migrate from the web to native mobile apps “following a trend we’ve seen played out in China and other mobile first markets”, said Veitch, who co-founded Wego as a travel search engine for South-east Asia in 2005. His views were echoed by Crighton who called out “emergence of mobile as the dominant search and book tool for travellers across the region” as a key trend to watch.
Added Veitch, “Tourism boards from around the world are beginning to realise just how exceptionally high-yielding Gulf travel markets can be and that digital marketing and digital partnership are the most effective ways to activate these demographically young travellers.”
Agreeing about the potential of the outbound market in the region, Khatri said, “Outbound leisure tourism is ever on the rise, especially among the younger generation of travellers from the region who are keen on new destinations. They are more adventurous, have the funds and are travelling more frequently than ever before.”
At the same time, however, he has also noticed a trend towards more consideration of budgets. “Low to mid-range -star hotels have increased in popularity as budget-minded travellers are seeking ‘no frills’ accommodation. Mid-range and budget hotels offer authentic stays that are easy on the pocket and leave more room for in-destination spend.”
Crighton is looking forward to World Expo 2020, which will be held in Dubai this October 20 to April 10, next year. Organisers have set a target of 25 million visits, with 70% of visitors coming from outside the UAE.
Said Crighton, “The GCC is one of the most exciting travel markets in the world as we are seeing a transformation of buyer behaviour from luxury to affordability that is creating a large opportunity for OTAs to cater to a new emerging middle class traveller. We are really excited to see WiT back in the region again. A lot has changed in the last 12 months which makes attendance a must for anybody interested in the Middle East travel story.”
Added Veitch, “I’m most looking forward to reconnecting with all of Wego’s friends and partners across the industry and to swapping notes with other people who are building online travel businesses focused on the region.”
Commented Khatri, “We are excited about WiT’s Middle East edition as it brings together some of the brightest minds in the travel industry to discuss real opportunities and challenges. Key stakeholders in the ecosystem are given an excellent platform to showcase thought-provoking, quality content and we, as a travel organisation, make invaluable connections every year.”
WiT Middle East 2020 will be held April 7 at Jumeirah Emirates Tower, Dubai. Check programme here and get your tickets here.
Featured photo credit: Getty Images
