India leads as Dubai’s top International Tourism Source Market in 2016

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Mumbai: Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) released its annual visitor figures showing Dubai attracted 14.9 million overnight visitors in 2016, recording a healthy five per cent (5%) increase over 2015, and an impressive 4-year CAGR of eight per cent (8%) (2012-2016) since His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, launched the 2020 tourism strategy.
Leading the visitor traffic producers to Dubai in 2016, India brought in 1.8 million overnight tourists reflecting a twelve per cent (12%) growth over 2015. Overall the South Asian markets across the Indian sub-continent continued to deliver impressive volumes of both first time and repeat traffic demonstrating the ability of Dubai to retain its appeal through a diverse range of evolving destination offerings. Expectations on tourism growth from India remain high for 2017 with even stronger bilateral ties being forged between the UAE and India, highlighted by the recent presence of His Highness Sheikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, as The Chief Guest at India’s 68th Republic Day celebrations.
The global performance trajectory which reflects twice the global travel industry growth of circa four per cent (4%) over the same period as forecasted by the United Nations World Travel Organisation (UNWTO), cements the foundation for Dubai Tourism to maintain stable momentum over the next three years and attain its 2020 goals.
The strong performance of the emirate’s tourism industry amidst a particularly turbulent year across the world assures progress towards not only the annual target of 20 million visitors by 2020, but also the increased sector-driven economic contribution to Dubai’s GDP. In what is an assertive reinforcement of the tourism sector’s resilience and competitiveness, Dubai has continued to grow its share of outbound travel market despite three of its largest source markets witnessing unique disruptions, coupled with debilitating international factors and a cautious global consumer sentiment that characterized 2016.
His Excellency Helal Saeed Almarri, Director General,DubaiTourism, said:“Under the visionary leadership and support of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler ofDubai, 2016 was another milestone marker forDubai’s travel sector, as we rallied strong, and ramped up the momentum to significantly outpace the four-year global industry average by double. With our international overnight traffic reaching 14.9 million,Dubaihas cemented its ranking as the fourth most visited city in the world, critically delivering the highest value to the domestic economy with our number one ranking in terms of spend per tourist compared to any other competitor destination.”
“Our growth through a period of unforeseen macro-economic upheavals particularly across our feeder markets, validates the ability ofDubai’s tourism sector to (1) adapt and respond with agility in all our markets; (2) effectively diversify investments and deploy strategies to minimise single-market exposure; and (3) dynamically converge as an industry across government, private and public sector to grow our destination appeal and competitiveness,” he said.
“The effectiveness of our three-pronged approach is evidenced by the encouraging thirteen per cent (13%) growth in volumes from South Asia led by India, despite the demonetisation and cash pressures facing the market. Similarly, KSA remained the dominant market within the GCC, bringing first time and significant repeat travellers toDubai. Another case in point is our tenacity in the UK, post the Brexit announcement and the ensuing over twenty per cent (20%) currency devaluation, where we delivered a commendable five per cent (5%) visitation growth. Highlights of 2016 include the massive twenty per cent (20%) boost in Chinese visitors, crossing the half million mark for the first time with 540,000 tourists arriving inDubai; and the definitive resurgence of Russian inbound tourism recording a fourteen per cent (14%) growth in overnight traffic. Both countries are only expected to further accelerate through 2017 thanks to the UAE’s recent implementation of visas-on-arrival for all their citizens,” Almarri summarized.
Taking a closer look at Key Figures and Growth Drivers:The Gulf Cooperation Council (GCC) remained the number one volume generator for tourism to Dubai, delivering the highest share of visitor volumes for 2016, with a total of 3.4 million, up five per cent (5%) over 2015. In terms of country-specific performance, KSA spearheaded the contribution with over 1.6 million visitors, a six per cent (6%) increase, with Oman next in line accounting for over 1 million travellers. Kuwait and Qatar retained their top 20 status, registering an annual growth of two per cent (2%) and nine per cent (9%) respectively. On a regional level, Western Europe followed closely as second highest demand driver for travel to Dubai, accounting for twenty-one per cent (21%) of the total 2016 tourism volumes with more than 3.1 million tourists, which represents a solid four per cent (4%) annual growth. The UK retained its position as Dubai’s number three market bringing in nearly 1.25 million visitors, while Germany stayed comfortably within the top 10 list maintaining stable performance with 460,000 visitors.
South Asian markets spanning the Indian sub-continent continued to deliver impressive volumes of both first time and repeat traffic, demonstrating the ability of Dubai to drive regular reconsideration through a diverse range of evolving destination offerings. Pakistan also featured in the top 10 markets, delivered 607,000 tourists and growing at a strong eighteen per cent (18%) over 2015.
Dubai remained a preferred destination for proximity markets across the wider Middle East and North African region that collectively contributed 1.6 million visitors despite heightened regional challenges. Much of the remaining volumes came from countries within the top 20, including the likes of Egypt and Jordan, that showed signs of returning back to stability and poised to drive future regional growth.
Across North and Southeast Asian markets, Dubai welcomed a total of 1.36 million travellers in 2016, making the Asian region the next largest contributor, accounting for nine per cent (9%) of the overall visitation, reflecting the highest increase over 2015 at fifteen per cent (15%). With 540,000 Chinese tourists last year, China dominated the demand from Asia, firmly cementing its status as a top 10 market, and is predicted to strengthen its contribution in light of the visa exemption policies that came into force in November 2016. Philippines also had an impressive year with stellar twenty per cent (20%) growth delivering 390,000 visitors, maintaining its position as number 11 in the source market rankings.
The Americas collectively brought in just short of 1 million overnight travellers, maintaining stability in performance, led by the United States with a steady contribution of 607,000 visitors despite 2016 being an election year that is known to impact outbound travel volumes, followed by Canada, which stayed within the top 20 list, delivering 176,000 visitors, up five per cent (5%).
Rounding off the major regional contributors were Russia, CIS and Central European markets, accounting for circa five per cent (5%) of the overall tourism volumes to Dubai in 2016, led strongly by recoveries from both Russia and Ukraine. The former delivered a particularly resilient comeback with 240,000 visitors, up fourteen per cent (14%) over 2015, and remains on a positive upward trajectory that is expected to spike now that Russia has become the latest entrant on the list of 47 countries exempted from UAE entry visa requirements, as of February 2017.
Positive growth across resolute markets and new frontier countries for Dubai has helped offset negative trends in the African region, which saw a seven per cent (7%) decline in travellers, as well as the Australasia region, which dropped nine per cent (9%) year-on-year.