Dubai growing to be the epicenter of Family Tourism

Dubai has perched itself as one of the most coveted family tourism destination in the world. Family tourism has emerged as a major segment of the Islamic economy, accounting for as much as 12.5 per cent of the $1.07 trillion global tourism market in 2012. The size and potential of this market can be estimated from the fact that it is larger than the world’s largest conventional tourism market, the United States, which is only 11.4 per cent of the global market. The report has been released as part of the preparations for the 10th World Islamic Economic Forum, or WIEF, which will be organised by the Dubai Chamber and the WIEF Foundation in Dubai from October 28 to 30.

Highlighting the potential for the UAE market, the Dubai Chamber report says the UAE is ranked first on the Travel and Tourism Competitiveness Index 2013 in the Organisation of Islamic Cooperation, or OIC, category.

The UAE is positioned high in the new emerging travel market since family values are embedded in the UAE culture. In fact, the country ranked second globally based on criteria set by Crescent rating, a leading Muslim travel rating organisation based in Singapore, receiving a rating of 7.0, the report states. Saudi Arabia and Morocco also figure among the top global destinations with a rating of 6.5 and 6.4, respectively.

Meanwhile, the highest rating of 8.4 was awarded to Malaysia; this has helped the country attract over 170,000 visitors from the GCC alone in 2013. However, the report points out that unlike Malaysia, the UAE is both a top source of Muslim tourists, as well as a top destination, which naturally places it in a great position to become a hub for the global family-travel segment. Notably, Middle East and North Africa states account for seven of the top 10 family tourism-friendly destinations among OIC nations.

According to the report and Citing recent studies related to the Islamic economy, GCC nations contribute as much as 31 per cent to the total spending by travelers in tourism-related activities. This is despite the relatively low population in the region, which makes up just three per cent of the global Muslim population. Saudi Arabia is also one of the top source markets for family tourism, accounting for $17.1 billion in spending in 2012, the Dubai Chamber report said. While the UAE follows with spending worth $10.1 billion, travelers from Kuwait accounted for $7.4 billion in spending. Interestingly, the report has identified Iran as the leading source market in the Middle East with $18.2 in spending by its travelers.

The family tourism has grown in value from $137 billion in 2012 to $140 billion in 2013, and is expected to surpass $181 billion by 2018. Driven by population growth in Islamic nations and the healthy economic performance of these economies, industry experts forecast that family tourism sector will enjoy solid growth of 4.79 per cent annually until 2020 — higher than the global average of 3.8 per cent growth — reflecting its growing significance in the Islamic economy.