GCC OUTBOUND TRAVEL REPORT BY UNWTO 2018

UNWTO GCC OUTBOUND TRAVEL 2018

1. Presented by Kumud Sengupta
Market Vision Research & Consulting, Dubai

2. Agenda
GCC market profile
Research insights
•GCC travel trade
•GCC consumer
Conclusions & recommendations
Q & A



2

3. 3
1. GCC Market Profile
Population
(million)
GDP
(US$ billion)
GDP per capita
(US$)

4. 4
8 6 4 2 0 2 4 6
0-4 yrs.
5-9 yrs.
10-14 yrs.
15-19 yrs.
20-24 yrs
25-29 yrs
30-34 yrs.
35-39 yrs.
40-44 yrs.
45-49 yrs.
50-54 yrs.
55-59 yrs.
60-64 yrs.
65-69 yrs.
70-74 yrs.
75-79 yrs.
80-84 yrs.
85+ yrs.
Percent
Males(%)
Females(%)
1. GCC Market Profile
With demographics skewed towards a younger population

5. 5
Fast growing outbound travel volume
8
14
24
40
46
61
GCC International tourist departures, 2000-2030f, million
2000 2005 2010 2015 2020f 2030f
1. GCC Market Profile
Source: UNWTO (Middle East data) and Market Vision (GCC estimates)

6. 6
Matched by rise in travel expenditure
1. GCC Market Profile
Source: UNWTO based on national sources
8
10
23
41
61
1995 2000 2005 2010 2017
Tourism expenditure from GCC markets
(US$ billion)

7. 7
Trade & Consumer Research Insights

8. 8
2. GCC Travel Trade
Traveller profile
•International leisure travel led by GCC nationals
•18-54 years; family oriented
•Multi-generational holiday travel → large travel groups
•Millennials segment growing → rise in small travel groups

Traveller behaviour
•Main holiday peak period still summer
•Trend towards travel round the year
•Trend towards exploring new destinations
•Trend towards different holiday types and activities
•Booking lead times changing to book earlier
•Use of internet for research and planning common

9. 9
Key drivers to holiday in Europe
•Aspirational, ‘upmarket’ destination
•Diversity of product and holiday experiences
•Shopping for luxury brands
•Good weather; summer getaway destination
•Familiarity drives repeat visitation

Key barriers to holiday in Europe
•Cost of holiday *
•Halal food
•Language
•Safety & security
* Though perception is changing
2. GCC Travel Trade

10. 10
Marketing of Europe to GCC travellers
•Easier to sell
•Multi-destination packages
•Luxury and budget options

Trade activities in promoting Europe
•Offline and online media channels, with increasing use of social
media
•Joint promotion campaigns with airlines, banks, NTOs
•Use of influencers to promote destinations and travel products
2. GCC Travel Trade

11. 11
Future travel trends
•Growth in outbound travel to the world
•Growth in travel to Europe, but increasing competition
•Multi-destination travel to increase
•Value-for-money to drive destination choices

Best prospect’ customer segments for Europe
•Led by GCC nationals
•Family travellers; 35-54 years
•Millennial travellers; 18-34 years

First time and repeat visitors
2. GCC Travel Trade

12. 12
General motivations to holiday abroad
3. GCC Consumers
4%
12%
17%
20%
32%
47%
52%
61%
66%
70%
Other (meet new people, make new
friends)
Enjoy holiday time with friends
Escape from summer heat
Participate in different activities (sports, art,
adventure)
Shopping
Experience / learn about new cultures
Change from routine
Spend vacation time with family
Need to de-stress and relax
See new places

13. 13
Motivations to holiday in Europe
3. GCC Consumers
70%
64%
63%
47%
39%
37%
35%
33%
25%
22%
18%
See new places
Europe’s scenic beauty and natural landscapes
To enjoy the weather in Europe
Diversity of cultural & historical attractions in Europe
Diversity of holiday experiences and activities in
Europe
Ease of accessibility (many flights to Europe)
Ease of travel to many countries with Schengen visa
To shop for high quality, luxury products in Europe
Europe is a value-for-money destination
Feeling of safety and security in Europe
Local people are hospitable and friendly

14. 14
Motivations to holiday in Europe
Different European countries have different iconic attractions, there is so much diversity
which attracts. - Emirati female

Most of Europe has a developed tourism infrastructure. It has some of the world’s largest
tourism economies. - Emirati male

Europe is great for shopping. For famous fashion brands. - Kuwaiti female

The atmosphere in European countries is really nice, and the weather is amazing. -
Kuwaiti male

I like going to Europe a lot because each place is different from the other and there are
lot of different activities, different weathers, different cultures. - Saudi female

Nature’s beauty, greenery, mountains, beaches, the countryside, the weather - all attract
us. …different life and a different lifestyle. - Saudi male
3. GCC Consumers

15. 15
Shopping as motivation to travel to Europe – top 5 reasons
84%
64%
61%
59%
57%
Products sold in Europe are of high
quality
More brands to choose from
Latest products, new fashion & brands
Better selection when shop in Europe
Designs /styles unique from those in my
country
3. GCC Consumers

16. 16
“The best part about Europe is you can go the original/main stores of the famous brands
for clothes, perfumes, jewellery, watches, bags and so on. You get the latest styles and
designs.” - Kuwaiti female

“Major luxury brands are cheaper in Europe, and you get the original product in so many
styles and colours for you to choose from...” - Saudi female

“We always keep a day or two to go the factory outlets. There are a lot of brands and
plenty of choice, and you get best discounts”. - Emirati female

“I like to buy sports outfits, sports shoes and accessories when I travel to Europe and
US. There’s better selection and better prices” - Kuwaiti male

Shopping as motivation to travel to Europe
3. GCC Consumers

17. 17
Barriers to holiday in Europe
3. GCC Consumers
Lack of cultural affinity
Language is a barrier
Wished to visit other parts of the world
It is too far (long distance and travel time)
Concerns about personal safety & security
Difficulty in getting visa
Lack of availability of Halal food
Requires too much advance planning
Europe is expensive
Did not get an opportunity to do so
Been to Europe once Not been to Europe

18. 18
“Recent situation with terrorist attacks is worrying. I hear there is greater scrutiny
especially of people coming from the Middle East. I would rather go to places where I
won’t have to face this”. - Saudi male

“Especially when travelling with children, I want to go to a safe place. Nowadays, in so
many cities in Europe, incidents keep happening. East Europe is better; we may go
there”. - Emirati male


“Once you go to Europe, it’s impossible to say that you don’t want to go there anymore.
Tourism is so developed there; it is enjoyable to go there”. - Emirati female

“No matter where you go, you’d go back to Europe. There is a cultural distinctiveness
that is only to be found in Europe”. - Saudi female
Barriers to holiday in Europe
3. GCC Consumers

19. 19
Travel experience – regions visited
88
67
50
26 26
15
9
7
Middle EastAsia Europe Africa North
America
AustralasiaCaribbean South
America
3. GCC Consumers

20. 20
Top 10 destinations visited
41%
40%
39%
35%
30%
30%
25%
23%
13%
12%
Turkey
United Kingdom
France
Germany
Austria
Italy
Switzerland
Spain
Belgium
Greece
34%
34%
26%
25%
24%
22%
22%
19%
17%
17%
Thailand
Malaysia
India
Singapore
United States of
America
Morocco
Indonesia
Hong Kong
(China)
China
Maldives
3. GCC Consumers
In other world regions In Europe

21. 21
Purpose of travel
3. GCC Consumers
37 14 14 7 11 17
Holiday
Visiting friends and relatives
Visit of sporting events
Health/medical treatment
Other purpose (wedding,
short course, special event)
Business
to other world regions
50 16 5 7 9 13
to Europe

22. 22
Number of holiday trips*
23 56 15 4 3
1 trip 2-4 trips 5-8 trips 9-12 trips More than 12 trips
to other world regions
* In last 5 years
3. GCC Consumers
18 48 23 6 5
1 trip 2-4 trips 5-8 trips 9-12 trips More than 12 trips
to Europe
•Frequency of trips to Europe is lower than to other world destinations

23. 23
Recent trip to Europe – seasonality
19 23 46 12
Jan-Mar Apr-Jun Jul-Sep Oct-Dec
3. GCC Consumers

24. 24
Recent trip to Europe – duration
8
21
27
23
12
9
2-3 nights 4-6 nights7-10 nights11-15 nights16-30 nightsMore than one
month
3. GCC Consumers
80% visited
in last 3
years

25. 25
Recent trip to Europe – top 10 destinations
26
22
19
17
16
14
12
11
7
United Kingdom
Turkey
Austria
France
Germany
Switzerland
Italy
Spain
Georgia
•In all, 39 European countries visited
•One-half visit more than one country on trip; average of two
3. GCC Consumers

26. 26
Recent trip to Europe – top 10 types of holiday
•Mainly city holiday, beach holiday/holiday by sea
3%
3%
4%
7%
7%
9%
11%
11%
18%
24%
Visit of global sporting event
Visit for medical treatment
Touring / driving holiday
Shopping trip
Holiday in the mountains
Adventure trip
Visit to leisure park/theme park
Holiday in the countryside
Beach holiday/holiday by sea
City holiday
3. GCC Consumers

27. 27
Recent trip to Europe – top 5 holiday activities
45
50
60
72
77
Going to leisure/theme
parks
Going on
sightseeing/excursion
tours
Dining out
Shopping
Walking around,
enjoying the
atmosphere
3. GCC Consumers

28. 28
Recent trip to Europe – top 5 shopping items
80
61
58
46
40
Fashion apparel and
accessories
Perfumes
Leather goods, shoes and
bags
Cosmetics/beauty/ skin
care products
Watches
3. GCC Consumers

29. 29
Recent trip to Europe: travel companions & party size
Solo 5%
Family
68%
Friends
19%
Friends +
family 7%
Tour group
1%
1 person
5%
2 persons
19%
3-4
people
49%
5-8
people
22%
8+ people
5%
3. GCC Consumers
• 7 out of 10 trips to Europe are with the family
• Half of all trips are with 3-4 people. Solo travel and very large groups
are less common on trips to Europe

30. 30
Recent trip to Europe: Accommodation used
46
22
15
7
5
5
5 star hotel or resort
4 star hotel or resort
Rented apartment/villa/house (including
airbnb)
Own apartment or villa/house
3 star hotel or budget accommodation
Stayed with friends or relatives in their
home
3. GCC Consumers

31. 31
Information sources
3. GCC Consumers
66%
65%
33%
19%
16%
14%
11%
8%
4%
Friends and family
Internet, websites, social media, etc.
Travel agents and tour operators
Holiday brochures and travel guides
Travel magazines
Country tourist offices
Travel channels/programs on television
Travel fairs and exhibitions
Did not use any

32. 32
Booking channels
3. GCC Consumers
Airline Accommodation
32%
24%
24%
14%
6%
1%
Through travel agent
All-inclusive package
Direct with airline (online)
Online travel agency
Direct with airline (offline)
Other
28%
25%
24%
11%
10%
2%
Through travel agent
Online travel agency
All-inclusive package
No booking required
(paid accommodation
not used)
Direct with hotel on
(online)
Direct with hotel
(offline)

33. 33
Travel spend on holidays abroad
• Expenditure is significantly higher in Europe than in other destinations
3. GCC Consumers
Up to USD 2,000
USD 2,001-USD 3,000
USD 3,001-USD 5,000
USD 5,001-USD 10,000
USD 10,001-USD 20,000
USD 20,001-USD 30,000
More than USD 30,000-
Don't know/not sure
Visitors to Europe Visitors to Other World

34. 34
Future trip to Europe
34%
30%
30%
23%
23%
19%
19%
18%
13%
12%
France
United Kingdom
Turkey
Germany
Austria
Switzerland
Italy
Spain
Georgia
Bosnia and Herzegovina
27%
25%
21%
21%
21%
19%
17%
15%
13%
12%
Thailand
Maldives
Malaysia
Canada
United States
Japan
Australia
Morocco
China
Indonesia
• Competition for Europe to intensify in coming years.
• Interest in other world across all potential visitors to Europe
3. GCC Consumers
Future trip to other regions

35. 35
SWOT analysis – Europe as a destination brand
4. Conclusions & Recommendations
Strengths Opportunities
Scenic beauty, diverse landscape
Good weather
Rich history and cultural heritage
Diversified tourism product
Luxury shopping
Ease of accessibility
Well-developed tourism
infrastructure
Ease of multi-country travel
Promoting products and experiences
for:
families
millennials
Multi-destination holidays
Pan-European themes and routes
‘All-season’ affordable, short holidays

36. 36
Weaknesses Threats
Lack of cultural affinity
Safety and security concerns
Fear of harassment
High cost of holiday
Lack of availability of Halal food
Language barriers
Lack of familiarity with many
destinations in Europe
Increasing global competition
Fluctuations in currency exchange
rates
Increase in cost of travel
Natural disasters; acts of terror
Political instability
Economic downturn
4. Conclusions & Recommendations
SWOT analysis – Europe as a destination brand

37. 37
Thank you for listening.
Questions?
https://www.e-unwto.org/doi/book/10.18111/9789284420131