visa tourism uae 12

8/9/2019 Visa Tourism Uae 12

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Tourism Outlook: UAE

June 2


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The United Arab Emirates (UAE) is ranked first in the Middle East for having the

most advanced travel and tourism sector1, so it is no surprise that year after year

millions of tourists select it as a holiday destination.

In 2011, 8.2 million overseas visitors sought out the UAE as a holiday destination.

Although this was 8.8 percent lower than the previous years nine million visitors,it is important to note that the actual amount spent by those who visited the UAE

in 2011 on Visa cards increased significantly over the previous year, indicating the

quality of visitors that the UAE is attracting. According to VisaVue Travel data,

international Visa account holders spent $4 billion on their cards while in the UAE a 28.7 percent

increase over 2010.

It is also vital to remember that despite the volatility in the Middle East in the midst of the Arab Spring

of 2011, which saw the number of tourists in the region as a whole drop by seven percent in 20112, the

UAE emerged as a safe haven in the region and continued to attract international visitors.

In addition to strong tourist arrival figures, the UAE recorded its highest ever number of inbound and

outbound flights in 2011 at 683,3893, up 7.6 percent on the previous year. Dubai International Airport

recorded the highest air traffic movements within the UAE (312,009 in 20113), with December listed

as its busiest month (28,229 air traffic movements3).

As part of Visas commitment to the tourism industry, I am very pleased to present the second

Tourism Outlook: UAE that includes information from tourism receipts from Abu Dhabi, Dubai, Ajman,

Fujairah, Ras al-Khaimah, Sharjah and Umm al-Quwain, in 2010 and 2011. This report uses actual Visa

card spend data to aggregate information about visitors where they are coming from, how much

they are spending and what they are buying.

As the worlds largest retail electronic payments network, Visa is in a unique position to provide

insight into where and how visitors are spending their money. Our proprietary processing network

allows us to analyse Visa data to identify global tourism spending insights and provide useful market

data and intelligence to businesses to improve product offerings and marketing strategies that can

best attract visitors and strengthen tourism competitiveness.

Such information has helped us develop and refine several strategic partnerships with leading retailers

such as the Jumeirah Group, Atlantis Resorts, Emirates and Visas sponsorship of the iconic Dubai

Shopping Festival - a partnership that we have fostered for sixteen years. As a staunch supporter of

UAEs tourism industry, Visa is committed to helping merchants, the government and other

stakeholders promote the UAE as one of the best tourism and shopping destinations in the world.

Marcello Baricordi

General Manager, UAE, Visa

1

1 World Economic Forum, Travel & Tourism Competitiveness Report, 2011

2 World Tourism Organisation

3 General Civil Aviation Authority (GCAA) 2011 report

Note: All currency amounts in US dollars unless stated otherwise


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Overview

VisaVue Travel data also supports this trend.

In 2011, international visitors spent $4 billion

on Visa cards in the UAE, up 28.7 percent year

on year.

As in 2010, Visa accounts holders from the

United Kingdom topped the list, followed by

Russia and the United States. Collectively,

tourists from these three countries spent $1.2

billion or 29.3 percent of total tourism spend.

The top ten source markets according to

VisaVue Travel data remained the same as the

previous year, collectively spending $2.4 billion

33 percent higher than in 2010.

The World Economic Forums 2011 Travel & Tourism Competitiveness Report

ranked the UAE 30th

among 139 countries, and the highest within the Middle

East. Strong development of the UAEs travel and tourism industry and

infrastructure contributed to the UAEs high ranking, and its ability to attract

large numbers of visitors from across the globe.

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4 UAE Ministry of Foreign Affairs

5 Includes railroads, marinas, ATMs, financial institutions, insurance, money transfers, etc

6 Includes all hotel and lodging accommodation, rentals and purchases

7 Includes general merchandise, contractors, confection, bakeries, home supply, lumber, paint, garden supply, clothing, software, music, wine/liquor, antiques,

bookstores, jewelry, toys, camera/photo supply, luggage/leather, glassware, cosmetics, newsstands, etc8

Includes buses, boat rentals, airport purchases, duty free purchases, home furnishings, catering, bars, casinos, golf courses, etc.

The UAE is a top destination for British travellers

with around one million British nationals visiting

the UAE every year4. Visitors from the United

Kingdom spent $489.5 million in 2011, (up 11

percent year on year). Spending was greatest in

the Remaining merchants5category which

includes ATM withdrawals (up 13 percent to

$145.0 million), on Accommodation6(up 7.2

percent to $133.9 million) and in the Other

retail7category which includes spend on general

retail items such as jewelry and clothes (up 11.8

percent to $76.7 million). Transaction volumes

also increased 9.5 percent to 2.3 million, while

the average transaction size rose 1.4 percent

to $215.08.

Russia moved up one place on the league board

to occupy second place in terms of total amount

spent in 2011. Russian tourists spent $342.5

million, up 43.9 percent year on year. Receipts

were highest in the Other retail category (up46.2 percent to $183.4 million), in the

Remaining merchants category (up 30.3

percent to $52.1 million) and on

Accommodation (up 36.2 percent to $42

million). The total number of transactions

increased 49.3 percent to 801,741 and the

average transaction size was 3.6 percent lower

at $427.26.

Visitors from the United States spent $340.2

million, up 11.5 percent year on year. The bulk

(28.9 percent) of receipts were registered on

Accommodation (up 19.9 percent to $98.5

million), followed by Remaining merchants (up

8.8 percent to $96.4 million) and Other retail

(up 8.6 percent to $48.2 million). The numberof transactions was higher (up 11.5 percent to 1.8

million) as was the average transaction size (up

0.7 percent at $188.31).

Neighbouring Saudi Arabia remains an

important contributor to the UAEs tourism

industry, with visitors spending $326.3 million

across 1.1 million transactions (up 73.8 percent

and 80.2 percent respectively). For Saudi

visitors, spending was highest on

Accommodation (up 80.1 percent to $127million), followed by the Other retail category

(up 62.6 percent to $94.1 million) and in the

Other travel and entertainment8 segment (up a

staggering 90.5 percent to $21.8 million). The

average transaction size for Saudi visitors

dipped slightly (down 3.6 percent to $292.26).

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Meanwhile, tourists from China spent $225.1

million, up 72.6 percent year on year. Following

a similar trend as Russian visitors, Chinese

visitors spent the most in the Other retailcategory (up 84.4 percent to $169.8 million), in

the Other travel and entertainment segment

(up 47 percent to $34.5 million) and on

Accommodation (up 33.7 percent to $8.3

million). Average transactions by Chinese

visitors went up 29.1 percent to $700.48.

Angola, with a total spend of $166.1 million (up

89.1 percent), moved up four places to sixth on

the league table in 2011. Receipts were highest

in the Remaining merchants category (up 87.6percent to $138.3 million), in the Other retail

category (up 84.2 percent to $12.9 million) and

in Radio TV and stereo stores9 (up an

impressive 107.1 percent to $2.9 million). Total

number of transactions increased a staggering

122.5 percent year on year to 364,239. However,

the average transaction size declined 15 percent

to $456.01.

Visitors from Kuwait spent $148.1 million in

2011, up 50.8 percent year on year. Other retail

topped the merchant category list (up 53.2

percent to $62.7 million), followed byAccommodation (up 55.4 percent to $37.9

million) and in the Other travel and

entertainment category (up 44.3 percent to

$11.7 million). Average transaction sizes were up

8.9 percent to $285.77.

Visa accounts holders from India spent a total

of $141.3 million (up 11.5 percent) in 2011, in

part due to an increase in transaction volumes

(up 19.5 percent to 726,275). As with the other

top ten source markets, spend was highest inthe Remaining merchants category (up 8.1

percent to $53.8 million), in the Other retail


in the Other travel and entertainment segment

(up 26.8 percent to $18.1 million). The average

transaction size was 6.7 percent lower at

$194.50.

9 Includes electronic store purchases


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French tourists spent a total of $134.1 million

(up 14.9 percent) in tourism receipts in 2011.

Spending was highest on Accommodation (up

19.4 percent to $42.8 million), in the Remaining

merchants category (up 13 percent to $35.4

million) and in the Other retail category (up11.8 percent to $22 million). The total number of

transactions were 15.4 percent higher at

591,819, yet the average transaction size was

0.4 percent lower at $226.56.

Rounding off the top ten source markets was

Kazakhstan, with tourists increasing their

spending by 31.5 percent to $133.1 million. As

with other big spenders, receipts were highest

in the Remaining merchants segment (up 48

percent to $61.7 million), in the Other retailcategory (up 20.7 percent to $44.4 million) and

on Accommodation (up 28.3 percent to $7.9

million).

Transaction volumes were 31.5 percent higher at

236,874, while the average transaction size was

8.4 percent higher at $561.97.

Overall in 2011, transaction volumes increased

22.7 percent to 15.6 million.

The average transaction size in 2011 by

international Visa accounts holders was

$255.42. This was 4.8 percent higher year on

year than the previous years average

transaction size of $243.61. High spending

countries10 that had the largest increase in

average transaction size came from China (up

29 percent to $700.48), Brazil (up 11 percent to

$201) and Kuwait (up nine percent to $286).Sri

Lankan visitors showed the largest growth in

average transaction size, up 85.1 percent to

$314.5 in 2011.

10Those whose residents made more than 100,000 transactions on their Visa cards while in the UAE


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Merchant categories

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The highest-spending countries in the Other

retail category which includes spend ongeneral merchandise like jewelry and clothes

were Russia (up 46.2 percent to $183.4

million), China (up 84.4 percent to $169.8

million) and Saudi Arabia (up 62.6 percent to

$94.1 million).

In the Remaining merchant category which

includes cash withdrawals, visitors from theUnited Kingdom registered the highest spend

(up 12.9 percent to $144.9 million), Angola

tourists spent $138.2 million (up 87.6 percent)

and visitors from the United States spent $96.3

million (up 8.8 percent).

In 2011, leading merchant segments for spend mirrored that of the previous

year. Visa account holders spent $1.2 billion on general merchandise like

clothes, music, antiques, and jewelry in the Other retail category (up 35.5

percent) and $898 million on Accommodation (up 25.5 percent).


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Looking to cater to the increasing number of

environmentally conscious global tourists, the

UAE began integrating green initiatives into the

economy in mid-2011 in a bid to improve

sustainability in alignment with its

environmental policy. Dubai in particular beganintroducing this into its tourism industry, by

transforming its hotel sector to attract visitors

looking to live the green lifestyle.

The Accommodation category again

witnessed tourists from the United Kingdom

topping the list, spending $133.8 million (up 7.2

percent), Saudi visitors spent $127 million (up

80.1 percent) and American tourists spent

$98.5 million (up 19.9 percent).

Just looking at Dubai alone, a recent report by

the Department of Tourism and Commerce

Marketing (DTCM), highlights this increase.

Dubais 575 hotels and serviced apartments

catered to 9.30 million tourists in 2011, a

growth of 10 percent over the 8.49 million in

2010. Of these, 7.26 million guests stayed in

hotels, up from 6.56 million in 2010. This

reflects an increase in room rates as hotel

occupancy stabilised at 74 percent.

Receipts from Steamships and cruise lines11

recorded the greatest year on year growth,

with a staggering 641.2 percent increase

to $69,581 from just over $9,000 the

previous year.

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11 Includes all cruise-related purchases


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The climate in the UAE tends to dictate much

inbound travel. The summer typically lasts

from April to September, with the hottest

months occurring in July and August. The hot

dry summer heat of the UAE is generally a

deterrent for visitors, who usually prefer to visit

during the cooler months of October through

to March.

As in 2010, the top four months that generated

the highest value of tourism receipts in the

UAE in 2011 were October, November,

December and February. In addition to the cool

climate, the UAE hosts a variety of eventsduring this period that entertains both

residents and tourists.

For example, the Global Village - an outdoor

bazaar featuring wares from merchants from

around the world - is only open in the winter

season and in its last season from end 2011/

early 2012, attracted almost five million visitors

over 151 days12.

Whether they are global events like the

Formula One in Abu Dhabi in November, the

Dubai World Cup - the worlds most expensive

horse race - which takes place in March or the

much awaited Dubai Shopping Festival

(typically held between January and February),

the winter season offers a mass of

entertainment and shopping options that

continually attract visitors from around the

world.

As in 2011, November held the top spot again

for the month that witnessed the highest spend

with international visitors spending $449.9million (up 27.9 percent over 2010). November

also had the most number of transactions

conducted (1.615 million, up 25.2 percent).

Apart from the thrills of the F1 and the concerts

and social scene that accompany it, November

is often the month for large-scale international

expos such as the Dubai Air Show and the

Dubai International Motor Show.

8

Seasonal spend

12 Global Village Press release (www.globalvillage.ae)


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December was second on the league table in

terms of transaction amount, with receipts at

$408.1 million (up 25.6 percent) but first in

terms of the number of transactions (1.6

million, up 21.7 percent). In December 2011,

the UAE came together to celebrate its 40thanniversary of independence with countless

entertainment activities. In addition, the much

awaited Dubai Rugby Sevens also takes place

in early December. It would seem these

activities contributed to the increase in

addition to the regular end of the year

peak season.

Conversely, August, one of the hottest months

of the year, was the quietest period for tourists

with $194.5 million spent on Visa cards - just

0.8 percent up on the previous year. Considering

Ramadan fell in August in 2011, and the spiritual

and reflective nature of the holy month, thereduction of commercial activity and related

spend by international visitors would be expected

Overall, the number of transactions grew 22.7

percent to 15.6 million.

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According to VisaVue Travel data, visitors

from the United Kingdom were the largest

spenders in 2011, with tourism receiptstotalling $489.5 million, 11 percent higher

than the previous year.

The number of transactions made on Visa

cards by British tourists was also up year on

year, increasing 9.5 percent to 2.2 million.

Interestingly, despite the number of

transactions and amounts increasing

considerably, the average spend per

transaction was only marginally higher than

last year ($215 versus $212).

Noteworthy increases in overall category

growth for UK tourists was in Quick serve

restaurants 13(QSRs) (up 104 percent per

transaction to $30), on Airlines14(up 26

percent to $707) and in Discount stores15

(up 14 percent per transaction to $65)

demonstrating that visitors to the UAE are

enjoying dining out and getting a bargain at

discount stores.

United Kingdom: UAEs top tourism contributor

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13 Includes all quick service restaurant purchases

14 Includes all airline-related purchases

15

Includes discount store purchases

Source: VisaVue Travel Data: 2010 - 20112010 2011

Airlines +38.3%

QSRs +237.7%

Other travel & entertainment +22.6%

Misc. specialty retail +9.3%

Drug stores & pharmacies +17.8%

Business to business +4.3%

Oil +34.8%

Sporting goods stores +10.6%

Department stores +76.2%

Discount stores +76.2%

Spend by British Tourists byMerchant Segment

$232,717M$785,828M

$14,108,940M

$19,508,693M

$623M

$1097M

$7,899,079M

$8,807,385M

$1,086,753M

$1,279,987M

$155,404M

$209,505M

$1,954,475M

$2,162,423M

$1,141,557M

$1,190,972M

$32,954,068M

$40,410,552M

$793,885M

$867,806M

Health care -0.8%

$6,422,612M

$6,369,461M


13/2011

Russia: UAEs second highest tourism contributor

Added to this, in late 2010, the Abu Dhabi

Tourism Authority (ADTA) opened a new

visitor centre in central Moscow at one of

Russias leading travel exhibitions in a bid toincrease the number of Russian visitors to

the UAE.

If looking at figures from 2011 is any indication,

the UAE is on track to meet this goal of

attracting more Russian tourists. According to

VisaVue Travel data, Russia tourists came

second only to the UK in terms of transaction

spend in 2011 spending $342.5 million, up 43.9

percent on the 2010 figure.

Russian visitors spent the most in the Other

retail category (up 46.2 percent to $183.4

million) followed by the Remaining merchants


in the Accommodation sector (up 36.2

percent to $42 million).

Over the years, the UAE - and Dubai in particular - has emerged as a favoured

destination among Russian holiday makers. The two countries have seen more

flight routes launched between them including a budget route by FlyDubai in

late 2010 from Yekaterinburg, one of Russias largest cities.


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16 Includes department store purchases

17 Includes printing, freight, commercial goods, industrial supplies, stationery, office supplies, uniforms etc

Noteworthy increases in category growth were

in Other travel and entertainment (up 50.6

percent to $23.5 million), Department stores16

(up 53.5 percent to $14.5 million) and Radio

TV and stereo stores (up a staggering 97.4

percent to $4.9 million).

The number of transactions on Visa cards by

Russian tourists was up an impressive 49.3

percent year on year to 801,741.

Categories leading in average spend were in

Discount stores (up 133.4 percent per

transaction to $921), QSRs (up 80.95 percent

per transaction to $210,579) and Business to

business17(up 44.6 percent per transaction

to $775,047).

Source: VisaVue Travel Data: 2010 - 20112010 2011

QSRs +380.2%

Discount stores +405.6%

Radio tv & stereo stores +97.4%

Misc. specialty retail +61%

Furniture/equipment stores +69.6%

Bill pay +85.9%

Other travel & entertainment +50.6%

Department stores +53.5%

Auto rental +63.9%

Business to business +116%

Spend by Russian Tourists by

Merchant Segment

Government +54.5%

$182M

$921M

$43,852M

$210,579M

$358,776M

$775,047M

$431,475M

$706,983M

$1,390,982M

$2,359,392M

$35

$37

$9,471,439M

$14,537,442M

$1,540,441M

$2,863,179M

$1,540,441M

$2,863,179M

$2,485,671M

$4,905,525M

$632,807M

$1,019,013M

$608,542M$940,384M


15/2013

Other retail category, which includes general

retail items such as antiques, jewelry and

clothing receiving 28.9 percent of tourists

spending in 2011 at $1.1 billion.

The UAE visa regulations for visitors from

China were eased two years ago, and since

then, the number of Chinese tourists visitingthe UAE has been increasing.

And while theyve been visiting in the droves,

Chinese visitors also had some of the highest

transaction sizes in the Other retail category

with an average of $1,587 spent per transaction

(up 19.4 percent over 2010).

Russian and Khazakstani visitors also showed a

propensity towards larger transaction sizes.

Russians spent an average of $645 per

transaction (down 1.4 percent) andKhazakstanis spent an average of $574 (up 0.7

percent) in the Other retail segment.

Shopping a clear favourite pastime


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About VisaVueTravel Data

Launched in 2009, VisaVue Travel data is a

service offered by Visa Inc. that provides

government agencies, hotels, airlines and otherorganisations within the tourism industry

unique insights into spending by international

visitors. VisaVue Travel data utilises aggregate

international account holder spending on Visa

debit, credit, commercial and prepaid cards to

help the tourism industry to analyse tourisms

economic contribution and tailor marketing,

promotional strategies and budgets based on

up-to-date visiting spending information.

The report features:

Analysis of tourism spending based on

country of origin

A detailed overview of tourism spending

across thousands of merchant categories

Visa is a valuable partner for the tourism

industry, providing tools and resources that

offer insight into how best to attract

international visitors and strengthen a

countrys tourism competitiveness. With a

network that connects more than 2.3 billion

Visa account holders (includes Visa Europe

account holders) and the people who carry

them with tens of millions of merchant outlets

and 1.9 million ATMs around the world, Visa is

in a unique position to foster better

understanding of travelers mindsets and where

and how they spend their money when

traveling abroad.

With VisaVue Travel data, Visa turns

transaction data into actionable informationthat delivers value to countries and businesses

that rely on tourism revenues.

As at December 31, 2010, Visa processed more

than 71 billion transactions totaling more than

US$3.3 trillion (payments volume, $5.2 trilliontotal volume), and it is clear that Visa payment

cards and services help power the global

economy and make payments faster, more

convenient, more reliable and more secure.

For more information regarding Visas

partnership with the tourism industry and

VisaVue spending data referenced, contact

[email protected].


19/2013

Travelling with Visa

Visa account holders benefit from secure,

convenient and reliable access to their funds,

with the ability to use digital currency at tensof millions of merchant locations and 1.9

million ATMs in more than 200 countries and

territories. Carrying a Visa card is safer than

carrying cash if a Visa card is lost or stolen, it

can easily be blocked and replaced, unlike cash,

which is gone forever.

Top Tips for Using Cards Abroad

Before leaving:

Check the expiration date on your Visa card

Tell your bank you will be using your card

abroad

Photocopy your card and passport, but keep

the photocopies separate

Check with the bank that issued your Visa

card to see if it offers any extra benefits

such as travel insurance or a money-back

guarantee if something goes wrong witha purchase

Note down the number of Visas Global

Customer Assistance Service (GCAS), a

global support network for account holders

that is available 24 hours a day, seven days a

week, every day of the year. Account holders

can call GCAS free from anywhere in the

world, using one of 550 telephone numbers

When abroad:

When you pay with your Visa card, check the

information on the terminal or sales voucher

before you sign or enter your PIN

There is no need to worry about complicated

currency conversions because the amount is

calculated automatically at a competitive rate

and deducted from your account in the usual

way. In addition, items purchased with VisaPlatinum and Visa Infinite cards are covered

by purchase protection insurance

Visa cards are a global currency, so it does

not matter if you have a chip-based or a

magnetic stripe-only card you can use it

anywhere. If you have a Visa chip card, you

may be asked to provide a signature instead

of a PIN by a merchant abroad

Occasionally in countries where transactions

normally involve a PIN, magnetic stripeaccount holders may be asked for a PIN

rather than a signature, so make sure you

know the PIN for any card you plan to use

while travelling. You can always reapply for a

new PIN from your bank if you have lost it

In some countries, some merchants offer

to make a currency conversion at point-of-

sale only do this if you are sure it offers a

good deal

Try not to keep cards and cash in the same

place - that way theres less chance of losing

everything if something does happen

Withdrawing cash in another country is

exactly the same as it is at home you use

the same card and PIN but the machine will

dispense local currency. If you want to take

out money abroad for taxis or tipping, you

can locate the nearest ATM by using the

ATM locator available on www.visa.com

Report a lost or stolen card to your bank

immediately to stop all card transactions

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Tourism Outlook: UAE

visa tourism uae 12

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