Presented by Kumud Sengupta

Market Vision Research & Consulting, Dubai

Agenda

GCC market profile

Research insights

• GCC travel trade

• GCC consumer

Conclusions & recommendations

Q & A

2

3

1. GCC Market Profile

Population (million)

GDP (US$ billion)

GDP per capita (US$)

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

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

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

Trade & Consumer Research Insights

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

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

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

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

General motivations to holiday abroad

3. GCC Consumers

4%

12%

17%

20%

32%

47%

52%

61%

66%

70%

Other (meet new people, make newfriends)

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

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 inEurope

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

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

Shopping as motivation to travel to Europe – top 5 reasons

84%

64%

61%

59%

57%

Products sold in Europe are of highquality

More brands to choose from

Latest products, new fashion & brands

Better selection when shop in Europe

Designs /styles unique from those in mycountry

3. GCC Consumers

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

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

“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

Travel experience – regions visited

88

67

50

26 26

15 9 7

Middle East Asia Europe Africa NorthAmerica

Australasia Caribbean SouthAmerica

3. GCC Consumers

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 ofAmerica

Morocco

Indonesia

Hong Kong(China)

China

Maldives

3. GCC Consumers

In other world regions In Europe

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

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

Recent trip to Europe – seasonality

19 23 46 12

Jan-Mar Apr-Jun Jul-Sep Oct-Dec

3. GCC Consumers

24

Recent trip to Europe – duration

8

21

27

23

12 9

2-3 nights 4-6 nights 7-10 nights 11-15 nights 16-30 nights More than onemonth

3. GCC Consumers

80% visited in last 3

years

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

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

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

Recent trip to Europe – top 5 shopping items

80

61

58

46

40

Fashion apparel andaccessories

Perfumes

Leather goods, shoes andbags

Cosmetics/beauty/ skincare products

Watches

3. GCC Consumers

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

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 (includingairbnb)

Own apartment or villa/house

3 star hotel or budget accommodation

Stayed with friends or relatives in theirhome

3. GCC Consumers

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

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

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

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

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

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

Thank you for listening.

Questions?

https://www.e-unwto.org/doi/book/10.18111/9789284420131