Retail sector to take chunk of DSS 2007 consumer spending

A recent announcement revealed a change in strategy that is expected to attract an increased number of regional and global visitors in the coming years. Estimates put the expected consumer spending during DSS 2007 to touch an all-time high of AED 3 billion, announcing high occupancy rates for hotels, and revenue increase for retailers.

Consumer spending in DSS 2006 reached AED 2.57 billion, with per visitor spending of approximately AED 1370.67. The corresponding figure for DSS 2005 stood at roughly AED 1139. Increasing visitor numbers and per visitor spending have resulted in an unprecedented growth in different economic sectors during summer.

The coming edition of DSS is readying to set the record compared to past editions in terms of visitor arrivals and expenditures with around 2.16 million visitors expected to spend about AED 3.08 billion. The expected figures are an increase of 15 and 20 per cent from the 2006 DSS edition.

Emerging markets are also contributing to the increasing number of visitors to Dubai. Regions like the Far East, where the DSS recently completed a road show, accounted for a significant number of inbound tourists throughout last year. In the first half of 2006, Far East hotel guests in Dubai reached 152,015 whereas in the second half of the year, that figure rose to 177,285.

While DSS aggressively markets itself in emerging markets, regions like GCC have been constant in sending the most number of visitors to Dubai since the event's inception. In 2006, the number of hotel guests from the GCC reached 819,310, accounting for approximately 15 per cent of the total number of hotel guests that year. While the GCC guest numbers during the first, second, and fourth quarter of 2006 averaged 183,732, the third quarter witnessed the highest number of GCC hotel guests in the months of July, August, and September - 268,112.

This steep increase is generally regarded as the result of DSS related attractions and the numerous promotions offered by the airline, travel and tourism, hospitality, and the retail sectors in the summer.

The expected increase in travellers augurs well for Dubai's leading retailers. The emirate's 1.37 million square metres of retail space in 2006 took the chunk of the expenditure during DSS 2006, accounting for over 50 per cent or AED 1.35 billion of total consumer spending.

Dubai-based Middle East Council of Shopping Centres estimates that the country's shopping mall growth will increase by 190 per cent by 2010. During this period, retail spending is expected to account for 25 per cent of the UAE's Gross Domestic Product. The growth of shopping malls directly translates to even more available retail space. According to GRMC Retail Services, the Gross Leasable Area in Dubai for this year will witness a 26 per cent increase compared to 2006 meaning more retail space to cater to the ever rising number of regional and international shoppers.

Retail sectors such as jewellery stand to benefit substantially from inbound visitors with Dubai being promoted as the City of Gold. The UAE's jewellery market is worth $6.13 billion and the second biggest in the region, according to the Dubai Gold and Jewellery Group. Jewellery retailers will be looking to capitalise on the fact that Dubai has the highest consumption of gold in the region with a per capita figure of 30 grams.

As visitors look forward to ten weeks of shopping, DSS organisers are also planning to present non-stop entertainment for two-and-a-half-months. Unlike the previous editions, the Ten Surprises will last the whole period of the event and showcase 72 days of un-ending excitement. DSS 2007 begins on June 21 and will run till August 31.