SHARJAH HOSPITALITY INDUSTRY POISED FOR GROWTH WITH RETAIL TOURISM BOOM

BY ASIER BAQUERO, GENERAL MANAGER OF OCCIDENTAL SHARJAH GRAND

Retail tourism has proven to be a significant contributor to the hospitality sector in the UAE. The growth of the retail industry has increased the demand for accommodation and other related services resulting in Sharjah rising as a popular destination for local and international visitors. The Sharjah Chamber of Commerce and Industry is growing the emirate’s retail sector with initiatives such as Sharjah Ramadan Festival to boost consumer spending with competitive price points. Furthermore, Sharjah Retail Group has recently signed an agreement with Sharjah Economic Development Department to boost the Emirate’s retail sector to better serve entrepreneurs, businesses, and SMEs entering the industry, including support on retail projects and shopping centres.

While it comes with its own set of challenges, the opportunities presented by retail tourism are immense for the hospitality industry in Sharjah. Hotels and hospitality management groups must adopt a customer-centric approach and offer tailored experiences for retail tourists. This can be done by creating retail packages that provide discounts and exclusive access to shopping malls and retail hubs across the city and wider UAE. Collaborating with local businesses and creating immersive shopping experiences within its property can enhance hotel groups’ efforts in catering to the specific needs of retail tourists. For example, at Occidental Sharjah Grand Hotel, we provide complimentary shuttle services to Dubai Mall, one of the most popular shopping destinations in the region. In addition, they organise the same shuttle services to Sharjah’s renowned shopping malls such as Sahara Center, Sharjah City Center, and City Center Al Zahia.

Collaboration between the retail and hospitality industries is vital to ensuring that both sectors benefit from the rising influx of tourists. Retailers and hotels can create unique and engaging experiences that attract and retain visitors – such as special packages that include shopping experiences, or temporary retail areas and pop-up kiosks within the hotel itself. By sharing consumer data and insights, retailers and hotels can get a better understanding of retail tourists’ preferences, tastes, likes, dislikes, and price points. This can help both industries provide tailored experiences that meet the expectations of visitors. This in turn leads to higher levels of customer satisfaction and increased revenue for both the retail and hospitality sectors.

In 2022, Sharjah grew to become a global destination that welcomed over 1.4 million hotel guests. Russian tourists were the largest group with 165,000 hotel guests, followed by India and Oman with more than 156,000 and 111,000 hotel guests, respectively. In total, the occupancy rate of hotel rooms in Sharjah concluded at 66%. Retail tourism continues to have a positive impact on Sharjah's hospitality sector, and with the right approach, it presents significant opportunities for growth. By offering tailored experiences and collaborating with retailers, hotels can attract and retain retail tourists. With a customer-centric approach and a willingness to collaborate, Sharjah's hospitality industry can continue to thrive.