American tourists turn to Gulf hotels

The US economy has taken a beating over the past year, but the country is still home to 30% of the world's high net worth individuals, the highest percentage of any nation in the world, said Lisa Hughes, Vice President and Publisher of Conde Nast Traveller.

Speaking at the Arabian Hotel Investment Conference (AHIC) in Dubai, Hughes says that she defines a high net worth individual as a person who makes $250,000 a year and has liquid assets of $1m.

Middle East on US radar

Citing figures from the magazine's annual poll of readers, Hughes says that a rising number of Americans in recent years have identified the Middle East as an attractive tourist destination. In 2000, only five cities and 21 hotels in the region were cited in the poll as desirable places to visit. By 2008, these figures jumped to 12 cities and 43 properties.

Interestingly, the Middle East came top among all destinations in the world with readers in regard to facilities and activities on offer. The region's hotels also scored highly in terms of food and dining and the design of their facilities.

‘The Middle East is clearly a busy destination for American business travellers, but when you are talking about leisure travel, it becomes a value proposition. The Gulf has many competitors for American travel dollars, especially South America, which provides a culture change for good value,’ she said.

Local culture

However, the Gulf offers many key qualities that upscale Americans look for in a destination. Topping American tourists’ wish lists are destinations that provide an opportunity to become immersed in the local culture.

'These travellers are seeking something completely different, an experience that cannot be duplicated. They want to be inspired by the local environment and cuisine,’ Hughes says. ‘They don't want it to feel like home.’ The Middle East provides these traits in abundance.

Upscale American travellers also are looking for a sense of adventure, and want to be able to say they are the first to try something. 'They want to have bragging rights,' she noted.

Since most Americans avoided the Middle East in the wake of the 9/11 attacks, the region has been largely clouded in mystery for the past few years. But now their views of the region are changing, especially because of Dubai. 'Americans have a huge interest in the region. There is a lot of buzz about Dubai,' she said.

As an example drawn from personal experience, Hughes points out that her nine-year-old son has been saying he wants to visit Dubai because he has learned that the emirate now boasts the tallest building in the world. 'If he wasn't in school I definitely would have brought him along with me,' she says with a smile.

US 'not a high priority'

Despite the potential implicit in the US market, it is not a cornerstone of Dubai's hotel developers expansion strategies. Arif Mubarak, CEO of Bawadi, said the US 'is not a main market for Dubai', as the emirate focuses mostly on tourists who are located between 4-6 hours flight from Dubai.

Another speaker cited statistics which show that there now more millionaires in India than in the US, perhaps providing even less reason to focus on America.

However, Emirates now flies non-stop to New York, Houston, Los Angeles, and is adding San Francisco later this year, reducing travel times between the regions. And these upscale travellers have indicated they are ready to spend. ‘Eighty-eight per cent have said the recession is not going to impact their spending habits, and 97% said travel is still a priority for them,’ Hughes notes.

Given that Bawadi is the largest hotel project in the world, and therefore has a lot of rooms to fill, rather than being dismissive it would seem wise to learn more about how to attract a travel segment of a market that appears to be quite willing to spend considerable amounts of money in this part of the world.

See also:
Dubai on track to hit tourism targets
Middle East's modern iconic landmarks