INSIGHTS
How the new six month stay for the five-year tourist visa will affect the retail sector in the UAE Which sub-sectors could benefit the most?
Tourism is an ‘export’ industry because goods and services are sold to consumers who generally live outside the community. The customers arriving as tourists generally have higher disposable incomes to spend on retail items. Tourism in the UAE is a key component of the country’s economy.
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ourism is a major contributor to sustainable economic growth in most cities and countries globally. Competition locally, regionally and globally is fierce for tourism dollars because tourists bring new, recurring, clean revenue sources to the communities which attract them. Tourism is an ‘export’ industry because goods and services are sold to consumers who generally live outside the community. The customers arriving as tourists generally have higher disposable incomes to spend on retail items. Tourism in the UAE is a key component of the country’s economy. The assets of a community are on display when tourists spend time travelling in foreign places. When people enjoy their time as tourists in exciting, safe places it opens up other economic benefits for both the community hosting the tourists and for the tourists themselves seeking business opportunities. Countries everywhere bring innovative marketing strategies to make the tourist visit easy, seamless and enjoyable. The introduction of the new five year tourist visa in the UAE is a great example of a country inviting more tourists to enjoy
14. RETAIL PEOPLE . JAN-MAR 2020
the wonderful sights and lifestyle available to those who visit here. The new five year visa, which is reported to be easier to attain, is an important step for the UAE to increase tourists and the duration of each stay. The new five year visa reaffirms the status of the UAE as a global tourist destination and is in line with the expectations for Expo 2020. Statistically in the past the average time tourists spent in Dubai is three days. Suggest with the new five year tourist visa the frequency of the stay will be increased and perhaps for increased duration as well. Advantages to the UAE include the attraction of new tourists to the UAE who have enjoyed Dubai in the past and would like to repeat their experiences. New tourists from countries who have not easily received tourist visas in the past may be encouraged to visit the UAE. The new five-year tourist visa will positively affect the retail sector in the UAE. Early in the past decade tourists accounted for up to forty percent of sales in the Dubai retail industry. On arrival to the
