DUBAI – GCC (Gulf Cooperation Council) nations - in particular, the UAE, Saudi Arabia and Oman – will be the biggest beneficiaries of a resurgence in Russian outbound tourism.
With the oil price recovery, stabling of the financial markets and increased disposable incomes, Russia, once again, represents a significant growth area for travel and tourism revenue across the GCC as Russian nationals turn to the region for its year-round sunshine, world-class hotels and resorts and fast-paced leisure facilities and amenities.– Danielle Curtis, exhibition director Middle east, Arabian Travel Market
Russian tourists travelling to the GCC are expected to generate an estimated US$1.22 billion in travel and tourism revenue by 2023, an increase of 19% when compared with figures from 2018, according to data published ahead of Arabian Travel Market 2020.
The latest Colliers research predicts the UAE will witness the highest growth, with total tourism spend by Russian visitors projected to reach US$1.153 billion by 2023 and tourism spend per trip increasing 5% from US$1,600 to US$1,750.
Danielle Curtis, exhibition director Middle east, Arabian Travel Market, said, “With the oil price recovery, stabling of the financial markets and increased disposable incomes, Russia, once again, represents a significant growth area for travel and tourism revenue across the GCC as Russian nationals turn to the region for its year-round sunshine, world-class hotels and resorts and fast-paced leisure facilities and amenities.”
Building on this, Saudi Arabia is expected to witness the second largest increase closely followed by Oman.
Following recent reforms in Saudi Arabia, the introduction of tourism e-visas and the on-going development of Giga projects including The Red Sea Project and Amaala, Saudi Arabia is looking to capitalise on Russia’s growing tourism spend.
“Saudi Arabia’s Giga Projects [a term coined to refer to development projects that exceed US$10bn in cost] – in particular, are aimed to cater to the luxury segment of the tourism market targeting high-net-worth individuals and Russia is currently ranked fourth in the world in terms of the number of billionaires residing in the country, with 303 Russians representing a total billionaire wealth of US$355 billion,” Ms Curtis said.
Ms Curtis said Russia’s links with the UAE have strengthened in recent years due to relaxed visa regulations for Russian nationals and the introduction of additional airline routes, with flydubai becoming the first airline in the Gulf to offer direct flights between the UAE and Sochi.
“Adding to this, Emirates and Etihad Airways have also increased their flights between both countries, with Emirates introducing a third daily flight to Moscow in 2018.”
The research study by Colliers International found that while the UAE will account for the majority of Russian arrivals in the GCC, Oman will witness the second highest comparative growth at 4% - welcoming 13,000 Russian nationals by 2023.
Saudi Arabia will closely follow with 17,100 Russian tourists expected to visit the Kingdom by 2023, compared with 15,200 in 2018 - a comparative growth of 3.2% Arabian Travel Marker takes place at Dubai World Trade Centre from April 19-22, 2020.