How the New UAE Tourist Visa Rules will Affect the Retail Sector

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.

Tourism 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

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

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 UAE the Dubai Duty Free and the Abu Dhabi Duty Free welcome visitors where statistically each person visiting the UAE spends approximately USD $45 per person on goods and services while transiting through the airport.

David Macadam, CEO, MECS+R with Younus Al Mulla, Chairman, MECS+R

UAE, the Dubai Duty Free and the Abu Dhabi Duty Free welcome visitors where statistically each person visiting the UAE spends approximately USD $45 per person on goods and services while transiting through the airport. More tourists will equate to greater retail sales for goods and services at the airports. Taxi, limousine and ground transportation benefit from the increased tourist traffic. Hotels and other forms of accommodation will greatly benefit with the increased tourism generated as a result of the new five year tourist visa.

During vacation, time spent looking at new regional products and services, shopping for good bargains and sight-seeing all contribute positively to the retail industry. Dubai and Abu Dhabi are home to some of the most innovative and magnificent retail and entertainment environments globally. With the global marketing programme which the UAE and specifically Dubai enjoy, the novel and prominent retail sector is well known. Part of the travel itinerary will be set aside for retail shopping by many tourists. With more tourists arriving with the implementation of the new five year tourist visa, the retail industry will be a chief beneficiary of the new tourist visa programme.

Retail shopping in the past has been a dominant factor influencing the number of tourists visiting Dubai. We have learned that a key driver for more tourism is repeat shopping visits from home countries. The reasons for tourist shoppers to visit the UAE include personal safety, new and varied brand presence not found in their home country and a retail industry which caters very well to the needs and desires of female shoppers. Dubai also has a retail market availability for every demographic segment of tourist visiting the city.

Retail sub-sectors to benefit dramatically from the new five year tourist visa include virtually all retail destinations across the UAE. The Dubai

Shopping Festival and Dubai Summer Surprises feature substantial price discounting over many months both of which continue to attract large numbers of shoppers seeking low price and bargain shopping.

Retail sub-sectors to benefit include the original tourist driven souks such as the Deira Gold Souk, and the Spice Market. Two of the largest retailers in the region the Dubai Duty Free and Abu Dhabi Duty Free will benefit strongly from the implementation of the new five year tourist visa. Generally the sub-sector Food & Beverage will also be well supported and grow with the increased number of tourists. The largest and most successful shopping centres across the UAE will continue to draw tourist shoppers. With the increased footfall from tourists, these shopping centres will dominate the landscape and be the magnet for these new five year tourist visa shoppers. David Macadam CEO, MECS+R