Measures brought on by the economic downturn will mean reduced expenditures for the average Arab family, the report said, while the limited spread of the new H1N1 flu virus in Arab countries will encourage the Arab tourist to look closer to home.
Domestic tourism has seen 31% growth in the UAE this year as compared to the 11% seen over the last three years, WTO statistics for the first six months of this year reveal.
Hotels worldwide are eager to tap Middle East travellers, as figures cited by the report showed that Arab Gulf countries spend $20bn on vacations every year, led by Saudi tourists whose expenditure tops $8.5bn.
Fall in European travel
Europe and the UK are typically the most popular destinations for Middle East travellers in the summer, but this year travel to these hot spots has fallen.
'The holiday traffic has been reduced partly because people do not know exactly what the future holds,' said Melwyn D'Souza, Operations manager, Al Futtaim travel in Dubai. 'They don't want to spend money on travel they can avoid.'
'Summer used to be a peak period, but people have been leaving in installments, basically, while before you'd see the rush in one go. We were reckoning that July would be a big month with people going back home, but they are choosing to stay here.'
As a result of the belt tightening, many people in the Middle East are choosing to take their holiday within the region, D'Souza told AME Info, as evidenced by the fact that 'flights till the end of July and early August to Egypt are full, you can't get a seat'.
Germany woos Gulf tourists
In a bid to encourage travellers from the Gulf to visit its hotels in Germany, Hyatt issued a press release last week focused solely on promoting the fact that its four properties in the country offer Arabic-speaking staff, authentic culinary specialties and prayer carpets to provide a more comfortable stay for 'valued guests' travelling from the Middle East.
'As part of Hyatt's authentic hospitality, we seek to provide our guests with the comfort of being in a home away from home. Because the Middle East is an important market for us, we have tailored a wide range of services to attract business and leisure travellers visiting Germany from the region,' said Thierry Bertin, Vice President Sales and Marketing for South West Asia.
In Berlin, which saw profitability at its hotels fall by more than 30% in May according to TRI Consulting, the Marriott is offering a summer special for Middle East travellers that includes Arabic-speaking front desk and guest service personnel, Arabic newspapers and TV channels, and complimentary in-room amenities such as the Quran and dates.
UK steps up tourism efforts
In the UK, visits from the UAE to Britain were up 15% in the first four months of this year compared to the same period in 2008, but the prolonged economic downturn and fear of travel to swine flu-affected countries have led to a decline in the number of visitors from the Middle East this summer, said Carol Maddison, Marketing Manager for VisitBritain, Britain's tourist authority.
'The feedback from UAE tour operators on bookings to Britain for summer 2009 is disappointing so far, as they are saying that business travel has dropped by 10% and leisure travel by 20%-25% compared to 2008,' she said.
The Middle East market is very important for Britain as spending by tourists from the Gulf is exceptionally high, including an average spend per visit from visitors from the UAE of £1,245, she noted. In 2008, the UK received 87,000 visitors from the UAE between July and September, up from 73,000 during the same period in 2007.
'The main marketing challenge we face currently is to inspire and excite the consumer to visit Britain in a period of economic instability. Our way ahead is a combination of world class marketing execution, originality, inspiration, high reach media and value offers from airlines,' Maddison told AME Info.
Price campaigns
'Over the past few months we have run a highly successful value campaign with British Airways offering travel to the UK (any destination BA flies to) for Dhs1,999. We have also worked with SAMA Dubai TV on their Harayer programme showcasing Scotland to their audience of local Arab women aged between 25 and 45.'
The UK tourism authority is also keen to get Middle East travellers to experience Britain outside London, 'as the majority think Britain IS London', Maddison said, 'it is one of VisitBritain's remits to encourage regional spread outside London, and with regional airlines such as Emirates, Qatar and Etihad now all flying to destination outside London, it is making it easier.'
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Jeff Florian, Senior Reporter
