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Mobile travel transactions boom in the Middle East

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Emirates

At the new ATM Global Stage, Phocuswright’s Middle East analyst, Jeff Strachan, chaired an interactive event, at which regional analyst’s examined the latest consumer and technology trends driving the market.

Phocuswright, has revealed that mobile transactions from Middle East travellers are set to hit double digits for the first time ever in 2016 as consumers become increasingly comfortable using their handheld devices for travel purchases.

“Transactions from mobile devices are expected to cross 10% this year, reaching double digits for the first time in 2016, With exciting trends like ever-improving technology infrastructure and a young population with an appetite for travel, the Middle East region is poised for enormous growth in the next three years, both online and off; and companies need to stay ahead of the curve in order to remain competitive in the area,” said Strachan.

The latest round of Phocuswright research also highlights the growth in online penetration in the region, which is on track to hit 31% of total revenues in 2016, up from 25% in 2014 and 27% in 2015; with 19% of all revenues delivered online via supplier-direct websites, and 12% of all revenues emanating from online travel agencies (OTAs).

OTAs are also gaining hotel revenue share according to the data. In 2014, 56% of all OTA revenue was attributed to airlines; whilst in 2016, 46% is forecast to go to hotels, with airline share dropping to 52%.

“There’s been a huge surge in confidence in the security of online transactions in the Middle East in the last 12 months and, as more and more people across the region start to rely on their mobile devices as a speedy, secure and reliable way to get things done, this can only increase. From everyday transactions such as bill paying to bigger and more emotionally driven purchases such as hotel stays and holidays, online is rapidly replacing offline interaction,” said Nadege Noblet-Segers, Exhibition Manager, Arabian Travel Market.

According to Phocuswright, OTAs represent 75% of all online revenues to hotels, and 28% of all online bookings to airlines, who have a much better online direct performance (61% from website direct and 11% via mobile).

Online travel agency representatives including Stephen Ekbergh, Founder and CEO TravelStart; Mark Forrester, Managing Director, Occupancy Marketing; and Ross Veitch, Co-Founder & CEO, Wego Pte Ltd, highlighted the challenges and opportunities for online distribution in the region.

According to Phocuswright, key source markets including India and Saudi Arabia are making rapid movement to online travel transactions with language playing a significant role in search, particularly in Saudi Arabia where over 50% of hotel and air search terms are in Arabic language.

Understanding the Indian marketplace was examined in a single session with an executive interview with Indian online travel company, Ezeego. Its CEO & Director, Neelu Singh, shared insight into how Middle Eastern destinations can better get to grips with the requirements and interests of Indian tourists in order to drive inbound visitor numbers and increase spend.

Photo courtesy Emirates 

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Maldives tourism poised for strong growth in 2024, with 2 million visitors expected

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Maldives is setting its sights on welcoming a record-breaking 2.01 million tourists in 2024, a 7.9% increase compared to anticipated arrivals this year. This optimistic forecast, released by the Maldives Association of Travel Agents and Tour Operators (MATATO), paints a vibrant picture of tourism industry thriving next year.

Several key factors are driving this projected surge:

  • The Resurgent Chinese Market: With borders reopening and travel restrictions easing, Chinese tourists are expected to flock back to the Maldives in droves, injecting significant energy into the sector.
  • New Tourist Delights: The Maldives is steadily expanding its offerings, with new resorts, attractions, and experiences emerging to cater to a wider range of visitors.
  • Smoother Skies Ahead: The completion of the Velana International Airport’s new terminal will boost capacity, making it easier for more tourists to reach the paradise islands.
  • Luxury’s Enduring Allure: The Maldives’ reputation as a premier luxury destination remains undimmed, attracting high-spending travelers seeking unforgettable experiences.
  • Weddings and Honeymoons in Paradise: The Maldives’ romantic charm is drawing ever-increasing numbers of couples seeking picture-perfect wedding and honeymoon destinations.

Looking geographically, Asia is expected to dominate the tourist influx, accounting for 60% of arrivals. Europe, America, and other regions are also projected to contribute significantly, highlighting the Maldives’ diverse appeal.

MATATO’s forecast is based on a meticulous analysis of data from various sources, including past tourism trends, industry forecasts, consumer sentiment surveys, and even cutting-edge AI technology.

MATATO acknowledges potential risks that could affect the rosy outlook. A global economic downturn, rising travel costs, and political instability are factors to be monitored closely.

With its stunning natural beauty, luxurious offerings, and strategic initiatives, the islands are poised to welcome a record number of visitors, reaffirming its status as a dream destination for discerning travelers.

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Maldives ranks 4th among world’s most popular “old money” destinations

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The Maldives has secured its place among the most sought-after “old money” destinations in the world, ranking an impressive fourth in a recent analysis conducted by SlotTracker.com. With over 12 million Instagram hashtags (12,777,931), the Maldives has emerged as a paradise for those seeking a luxurious and refined getaway.

Renowned for its exclusive resorts, pristine beaches, and private water villas, the Maldives offers an ideal setting for indulging in opulence and tranquillity. The timeless natural beauty of the archipelago, coupled with high-end accommodations and a variety of water-based activities, further adds to its allure, attracting discerning travelers in search of sophistication.

The concept of “old money” or “quiet luxury” has gained significant attention in recent times, with TikTok’s latest trend garnering over 2.5 billion views for the hashtag #oldmoneyaesthetic. This trend embodies a sense of understated elegance, free from overt displays of wealth, and draws inspiration from the refined style of celebrities like Sophia Richie and the hit TV show “Succession.”

Driven by curiosity about this trend, SlotTracker.com conducted a thorough analysis of more than 400 million Instagram hashtags to identify the destinations that epitomize refinement and elegance. From enchanting European cities to exotic havens in the Caribbean, their findings unveiled the most popular “old money” destinations worldwide, captivating travelers with unparalleled experiences of luxury and exclusivity.

The Maldives’ fourth-place ranking showcases the destination’s enduring appeal and its ability to deliver a quintessential “old money” experience. The abundance of Instagram hashtags dedicated to the Maldives indicates its popularity among influencers and travelers seeking to showcase their elegant retreats and experiences in this tropical paradise.

With its breathtaking turquoise waters, pristine white sand beaches, and idyllic private villas perched above the ocean, the Maldives offers an escape from the hustle and bustle of everyday life. The luxurious resorts scattered across the archipelago cater to the most discerning guests, providing personalized services, gourmet dining, and world-class amenities.

Whether it’s indulging in a rejuvenating spa treatment, embarking on a romantic sunset cruise, or exploring the vibrant marine life through snorkeling or diving, the Maldives offers a range of activities that complement the serenity and sophistication of the destination.

As the Maldives continues to attract global attention as a premier “old money” destination, the local tourism industry is poised to benefit from the discerning travelers seeking luxurious experiences. The Maldivian government and tourism authorities can leverage this recognition to further enhance the destination’s offerings, promoting sustainable luxury tourism that preserves the natural beauty and cultural heritage of the islands.

The fourth-place ranking among the world’s most popular “old money” destinations reinforces the Maldives’ position as a leading luxury travel hotspot. Travelers from around the globe are enticed by the Maldives’ timeless charm, and the destination’s commitment to providing an extraordinary blend of tranquillity, sophistication, and exclusivity continues to set it apart in the world of luxury travel.

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Maldives central bank says tourism revenue up 88 percent in Q1-2018

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Maldives tourism receipts recorded an increase of 88 percent in the first quarter of the year, a survey by the country’s central bank has shown.

In the Quarterly Business Review conducted from April 4-26 by the Maldives Monetary Authority (MMA), majority of the respondents from the tourism sector indicated an increase in total revenue and resort bookings in Q1-2018 when compared with  Q4-2017 — net balances of 88 percent and 58 percent respectively. As for average room rates, 81 percent of the respondents reported an increase in Q1-2018 in comparison to the previous quarter.

“[It was a reflection] of the peak season of the tourism industry,” the survey, which was participated by 100 enterprises from the major sectors of the economy, read.

Looking at employment numbers of the tourism industry during the review quarter, 53 percent of the respondents indicated that their employment remained unchanged, while 39 percent reported an increase. With regard to business costs, 77 percent and 60 percent of the respondents reported an increase in labour-related costs and input prices respectively.

According to the survey, half of the respondents from the tourism industry indicated no change in their capital expenditure, while 80 percent of the respondents reported their access to credit remain unchanged in Q1-2018 from Q4-2017. Reflecting these developments, 42 percent of the respondents cited an increase in the financial situation of the company, while a majority reported no change, it said.

“Following the seasonality in the tourism sector, the majority of the respondents expect total revenue, resort bookings and average room rate to decrease in Q2-2018 compared with the review quarter, as indicated by the negative net balances,” MMA said, in its survey report.

“… access to credit is also expected to remain unchanged. With regard to future investments, 31 percent of the respondents anticipate an increase in capital expenditure, while the majority foresee their capital expenditure to remain unchanged in Q2-2018. As for the financial situation, 54 percent of the respondents expect it to tighten, while 44 percent anticipate it to remain unchanged in Q2-2018.”

The central bank’s estimates are in line with growth trends reported by other authorities as well as independent research firms.

According to official figures released by the tourism ministry, total arrivals for the first five months of the year increased by 10.6 percent to reach 632,729 compared to the 572,318 in the same period of last year.

Meanwhile, data compiled by leading global market research and analysis firm STR has shown that Maldives posted the highest occupancy level for a Q1 since 2014 thanks to the highest Q1 demand increase in the destination since 2010.

According to STR’s Asia/Pacific hotel performance report for Q1 2018, occupancy in the Maldives during the January-March period stood at 76.7 percent — an year-over-year increase of 7.6 percent. This represents the highest absolute occupancy level for a Q1 in Maldives since 2014 thanks to the highest Q1 demand increase in the country (10.6 percent growth) since 2010, it said.

STR data also showed that Average Daily Rate (ADR) in the Maldives increased by 1.6 percent to MVR 12,569.93 (USD 815.10) in Q1, while Revenue Per Available Room (RevPAR) in the destination also recorded a 9.4 percent growth to reach MVR 9,637.91 (USD 624.97) during the first three months of the year.

However, domestic political instability has hit tourist arrivals, with numbers posting declines for two consecutive months.

Maldives attracted a wave of bad publicity following the recent declaration of a state of emergency, which ended in March. However, the political turmoil was strictly restricted to the capital city, away from the resorts and local islands where holidaymakers stay in.

However, MMA has projected the performance in the Maldives tourism industry to firm up during the year despite the current political instability.

Over the past five years, dozens of uninhabited islands have been leased to local and foreign resort developers. Several international brands have entered into the market, increasing the number of resorts to 120. That number is set to increase as the government has announced the opening of some 20 new resorts over the next two years.

Along with the new resort openings come the challenge of increasing demand from budget travellers who choose guesthouses over luxury resorts that the Maldives is known for. The guesthouse sector has rapidly expanded with over 450 guesthouses in operation today.

The government has announced new steps to maintain a structured growth in tourism, including a slowdown in leasing islands for resort development and increased marketing efforts in key markets such as China and the Middle East in order to reach an ambitious target of a record 1.5 million tourist arrivals this year.

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