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UAE: Holiday spending per capita expected to rise 15-20% in 2023 – News

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Average annual business travel spending by SMEs in the country is expected to grow by the same percentage next year



File Photo: Koh Samui

File Photo: Koh Samui

published: Monday, December 26, 2022 at 3:29 pm

Holiday spending per capita is expected to grow by 15-20% from Dh2,500 in 2022 to Dh3,000 in 2023 – mainly due to higher airfares.

This was revealed by Musafir.com, one of the UAE’s leading online travel agencies, which also said that the ‘International Travel’ segment will see faster growth in 2023 compared to the previous year.

Average annual business travel spending by UAE SMEs is also expected to increase by 15-20% by 2023.

The GCC, India, the UK, EU countries and the US will continue to remain the main destinations for business travelers in the region.

Sachin Gadoya, co-founder and CEO of Musafir.com and Musafir Business, said: “The tourism industry accounts for nearly 10% of global GDP and authorities across countries have been working together to improve safety, hygiene and safety. The industry needs reassurance regain lost ground.”

Gadoya added: “As a result, leisure and business travel will recover steadily in FY2022 due to significantly lower pandemic-related risks, easing of global travel regulations, increased traveler confidence, and a desire at the corporate level to resume face-to-face appointments. Trends [will] It will only be strengthened in 2023. “

Data and trend forecasts collected through inquiries and bookings on the Musafir Business platform show that business travelers will continue to opt for first and business class, despite an increase in ticket prices of around 15%.

The premium economy travel model further increases the options for such travelers.

The average corporate travel budget in 2023 will increase by 15-20%, to levels comparable to pre-pandemic levels.

“Insights gained from the Musafir business platform show very clearly that organizations in the UAE prefer face-to-face interactions to build trust and long-term business relationships.

With the drastic relaxation of travel regulations today, the average annual business travel spend of UAE SMEs is expected to increase by 15-20% in 2023 – from Dh185,000 in 2022 to Dh220,000 in 2023 – which is very close indeed AED 250,000 by 2019 pre-pandemic figure. “

Cruise ships will be one of the most important travel trends in 2023

Cruise ships are said to be one of the top travel trends of 2023, offering travelers unique opportunities to discover new destinations combined with a host of activities for everyone on board.

In terms of leisure, Kazakhstan, Georgia, Azerbaijan, Armenia, Serbia, Albania, Kyrgyzstan and Uzbekistan are the key choices of holiday destinations for UAE tourists in 2022.

Musafir.com expects the CIS countries to continue to be the top choice for leisure travelers in the UAE.

“Passengers from the UAE like to visit these countries due to the colder weather and the acceptable three- to four-hour flight time. Not only are these places suitable for holidays with families and children, but there are also many budget hotels and great shopping in these destinations. Value hotel options are available.

Overall, these resorts provide customers with great value for money,” added Gadoya.

Gardoya also highlighted that leisure travel to the UK and EU countries, especially the UK, France and Switzerland, is expected to increase by 2023 compared to returning home.

“Travel restrictions and visa challenges due to the pandemic do not allow many travelers to visit these destinations. We expect budget and luxury travel demand to remain at 50% each. As the situation eases, holiday demand in the UK and EU countries will Soar in 2023.

Additionally, leisure travelers from the UAE prefer to visit countries that offer hassle-free and easy visas, which may be e-Visa, visa-on-arrival or visa-free destinations. “

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