Tourism Outlook: UAE

June 2012

The United Arab Emirates (UAE) is ranked first in the Middle East for having the
1
most advanced travel and tourism sector , so it is no surprise that year after year
millions of tourists select it as a holiday destination.
In 2011, 8.2 million overseas visitors sought out the UAE as a holiday destination.
Although this was 8.8 percent lower than the previous years nine million visitors,
it is important to note that the actual amount spent by those who visited the UAE
in 2011 on Visa cards increased significantly over the previous year, indicating the
quality of visitors that the UAE is attracting. According to VisaVue Travel data,
international Visa account holders spent $4 billion on their cards while in the UAE a 28.7 percent
increase over 2010.
It is also vital to remember that despite the volatility in the Middle East in the midst of the Arab Spring
2
of 2011, which saw the number of tourists in the region as a whole drop by seven percent in 2011 , the
UAE emerged as a safe haven in the region and continued to attract international visitors.
In addition to strong tourist arrival figures, the UAE recorded its highest ever number of inbound and
3
outbound flights in 2011 at 683,389 , up 7.6 percent on the previous year. Dubai International Airport
3
recorded the highest air traffic movements within the UAE (312,009 in 2011 ), with December listed
3
as its busiest month (28,229 air traffic movements ).
As part of Visas commitment to the tourism industry, I am very pleased to present the second
Tourism Outlook: UAE that includes information from tourism receipts from Abu Dhabi, Dubai, Ajman,
Fujairah, Ras al-Khaimah, Sharjah and Umm al-Quwain, in 2010 and 2011. This report uses actual Visa
card spend data to aggregate information about visitors where they are coming from, how much
they are spending and what they are buying.
As the worlds largest retail electronic payments network, Visa is in a unique position to provide
insight into where and how visitors are spending their money. Our proprietary processing network
allows us to analyse Visa data to identify global tourism spending insights and provide useful market
data and intelligence to businesses to improve product offerings and marketing strategies that can
best attract visitors and strengthen tourism competitiveness.
Such information has helped us develop and refine several strategic partnerships with leading retailers
such as the Jumeirah Group, Atlantis Resorts, Emirates and Visas sponsorship of the iconic Dubai
Shopping Festival - a partnership that we have fostered for sixteen years. As a staunch supporter of
UAEs tourism industry, Visa is committed to helping merchants, the government and other
stakeholders promote the UAE as one of the best tourism and shopping destinations in the world.

Marcello Baricordi
General Manager, UAE, Visa

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2
3

World Economic Forum, Travel & Tourism Competitiveness Report, 2011

World Tourism Organisation
General Civil Aviation Authority (GCAA) 2011 report

Note: All currency amounts in US dollars unless stated otherwise

Overview

The World Economic Forums 2011 Travel & Tourism Competitiveness Report
th
ranked the UAE 30 among 139 countries, and the highest within the Middle
East. Strong development of the UAEs travel and tourism industry and
infrastructure contributed to the UAEs high ranking, and its ability to attract
large numbers of visitors from across the globe.
VisaVue Travel data also supports this trend.
In 2011, international visitors spent $4 billion
on Visa cards in the UAE, up 28.7 percent year
on year.

tourists from these three countries spent $1.2

billion or 29.3 percent of total tourism spend.
The top ten source markets according to
VisaVue Travel data remained the same as the
previous year, collectively spending $2.4 billion
33 percent higher than in 2010.

As in 2010, Visa accounts holders from the

United Kingdom topped the list, followed by
Russia and the United States. Collectively,

The UAE is a top destination for British travellers

with around one million British nationals visiting
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the UAE every year . Visitors from the United
Kingdom spent $489.5 million in 2011, (up 11
percent year on year). Spending was greatest in
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the Remaining merchants category which
includes ATM withdrawals (up 13 percent to
6
$145.0 million), on Accommodation (up 7.2
percent to $133.9 million) and in the Other
7
retail category which includes spend on general
retail items such as jewelry and clothes (up 11.8
percent to $76.7 million). Transaction volumes
also increased 9.5 percent to 2.3 million, while
the average transaction size rose 1.4 percent
to $215.08.

average transaction size was 3.6 percent lower

at $427.26.
Visitors from the United States spent $340.2
million, up 11.5 percent year on year. The bulk
(28.9 percent) of receipts were registered on
Accommodation (up 19.9 percent to $98.5
million), followed by Remaining merchants (up
8.8 percent to $96.4 million) and Other retail
(up 8.6 percent to $48.2 million). The number
of transactions was higher (up 11.5 percent to 1.8
million) as was the average transaction size (up
0.7 percent at $188.31).
Neighbouring Saudi Arabia remains an
important contributor to the UAEs tourism
industry, with visitors spending $326.3 million
across 1.1 million transactions (up 73.8 percent
and 80.2 percent respectively). For Saudi
visitors, spending was highest on
Accommodation (up 80.1 percent to $127
million), followed by the Other retail category
(up 62.6 percent to $94.1 million) and in the
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Other travel and entertainment segment (up a
staggering 90.5 percent to $21.8 million). The
average transaction size for Saudi visitors
dipped slightly (down 3.6 percent to $292.26).

Russia moved up one place on the league board

to occupy second place in terms of total amount
spent in 2011. Russian tourists spent $342.5
million, up 43.9 percent year on year. Receipts
were highest in the Other retail category (up
46.2 percent to $183.4 million), in the
Remaining merchants category (up 30.3
percent to $52.1 million) and on
Accommodation (up 36.2 percent to $42
million). The total number of transactions
increased 49.3 percent to 801,741 and the
4
5
6
7
8

UAE Ministry of Foreign Affairs

Includes railroads, marinas, ATMs, financial institutions, insurance, money transfers, etc
Includes all hotel and lodging accommodation, rentals and purchases
Includes general merchandise, contractors, confection, bakeries, home supply, lumber, paint, garden supply, clothing, software, music, wine/liquor, antiques,
bookstores, jewelry, toys, camera/photo supply, luggage/leather, glassware, cosmetics, newsstands, etc
Includes buses, boat rentals, airport purchases, duty free purchases, home furnishings, catering, bars, casinos, golf courses, etc.

Meanwhile, tourists from China spent $225.1

million, up 72.6 percent year on year. Following
a similar trend as Russian visitors, Chinese
visitors spent the most in the Other retail
category (up 84.4 percent to $169.8 million), in
the Other travel and entertainment segment
(up 47 percent to $34.5 million) and on
Accommodation (up 33.7 percent to $8.3
million). Average transactions by Chinese
visitors went up 29.1 percent to $700.48.

Visitors from Kuwait spent $148.1 million in

2011, up 50.8 percent year on year. Other retail
topped the merchant category list (up 53.2
percent to $62.7 million), followed by
Accommodation (up 55.4 percent to $37.9
million) and in the Other travel and
entertainment category (up 44.3 percent to
$11.7 million). Average transaction sizes were up
8.9 percent to $285.77.
Visa accounts holders from India spent a total
of $141.3 million (up 11.5 percent) in 2011, in
part due to an increase in transaction volumes
(up 19.5 percent to 726,275). As with the other
top ten source markets, spend was highest in
the Remaining merchants category (up 8.1
percent to $53.8 million), in the Other retail
category (up 30.3 percent to $29.5 million) and
in the Other travel and entertainment segment
(up 26.8 percent to $18.1 million). The average
transaction size was 6.7 percent lower at
$194.50.

Angola, with a total spend of $166.1 million (up

89.1 percent), moved up four places to sixth on
the league table in 2011. Receipts were highest
in the Remaining merchants category (up 87.6
percent to $138.3 million), in the Other retail
category (up 84.2 percent to $12.9 million) and
in Radio TV and stereo stores9 (up an
impressive 107.1 percent to $2.9 million). Total
number of transactions increased a staggering
122.5 percent year on year to 364,239. However,
the average transaction size declined 15 percent
to $456.01.
9

Includes electronic store purchases

French tourists spent a total of $134.1 million

(up 14.9 percent) in tourism receipts in 2011.
Spending was highest on Accommodation (up
19.4 percent to $42.8 million), in the Remaining
merchants category (up 13 percent to $35.4
million) and in the Other retail category (up
11.8 percent to $22 million). The total number of
transactions were 15.4 percent higher at
591,819, yet the average transaction size was
0.4 percent lower at $226.56.

Transaction volumes were 31.5 percent higher at

236,874, while the average transaction size was
8.4 percent higher at $561.97.
Overall in 2011, transaction volumes increased
22.7 percent to 15.6 million.
The average transaction size in 2011 by
international Visa accounts holders was
$255.42. This was 4.8 percent higher year on
year than the previous years average
transaction size of $243.61. High spending
countries10 that had the largest increase in
average transaction size came from China (up
29 percent to $700.48), Brazil (up 11 percent to
$201) and Kuwait (up nine percent to $286).Sri
Lankan visitors showed the largest growth in
average transaction size, up 85.1 percent to
$314.5 in 2011.

Rounding off the top ten source markets was

Kazakhstan, with tourists increasing their
spending by 31.5 percent to $133.1 million. As
with other big spenders, receipts were highest
in the Remaining merchants segment (up 48
percent to $61.7 million), in the Other retail
category (up 20.7 percent to $44.4 million) and
on Accommodation (up 28.3 percent to $7.9
million).

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Those whose residents made more than 100,000 transactions on their Visa cards while in the UAE

Merchant categories

In 2011, leading merchant segments for spend mirrored that of the previous
year. Visa account holders spent $1.2 billion on general merchandise like
clothes, music, antiques, and jewelry in the Other retail category (up 35.5
percent) and $898 million on Accommodation (up 25.5 percent).
The highest-spending countries in the Other
retail category which includes spend on
general merchandise like jewelry and clothes
were Russia (up 46.2 percent to $183.4
million), China (up 84.4 percent to $169.8
million) and Saudi Arabia (up 62.6 percent to
$94.1 million).

In the Remaining merchant category which

includes cash withdrawals, visitors from the
United Kingdom registered the highest spend
(up 12.9 percent to $144.9 million), Angola
tourists spent $138.2 million (up 87.6 percent)
and visitors from the United States spent $96.3
million (up 8.8 percent).

Looking to cater to the increasing number of

environmentally conscious global tourists, the
UAE began integrating green initiatives into the
economy in mid-2011 in a bid to improve
sustainability in alignment with its
environmental policy. Dubai in particular began
introducing this into its tourism industry, by
transforming its hotel sector to attract visitors
looking to live the green lifestyle.
The Accommodation category again
witnessed tourists from the United Kingdom
topping the list, spending $133.8 million (up 7.2
percent), Saudi visitors spent $127 million (up
80.1 percent) and American tourists spent
$98.5 million (up 19.9 percent).
Just looking at Dubai alone, a recent report by
the Department of Tourism and Commerce
Marketing (DTCM), highlights this increase.
Dubais 575 hotels and serviced apartments
catered to 9.30 million tourists in 2011, a
growth of 10 percent over the 8.49 million in
2010. Of these, 7.26 million guests stayed in
hotels, up from 6.56 million in 2010. This
reflects an increase in room rates as hotel
occupancy stabilised at 74 percent.
Receipts from Steamships and cruise lines11
recorded the greatest year on year growth,
with a staggering 641.2 percent increase
to $69,581 from just over $9,000 the
previous year.

11

Includes all cruise-related purchases

Seasonal spend

Whether they are global events like the

Formula One in Abu Dhabi in November, the
Dubai World Cup - the worlds most expensive
horse race - which takes place in March or the
much awaited Dubai Shopping Festival
(typically held between January and February),
the winter season offers a mass of
entertainment and shopping options that
continually attract visitors from around the
world.

The climate in the UAE tends to dictate much

inbound travel. The summer typically lasts
from April to September, with the hottest
months occurring in July and August. The hot
dry summer heat of the UAE is generally a
deterrent for visitors, who usually prefer to visit
during the cooler months of October through
to March.
As in 2010, the top four months that generated
the highest value of tourism receipts in the
UAE in 2011 were October, November,
December and February. In addition to the cool
climate, the UAE hosts a variety of events
during this period that entertains both
residents and tourists.

As in 2011, November held the top spot again

for the month that witnessed the highest spend
with international visitors spending $449.9
million (up 27.9 percent over 2010). November
also had the most number of transactions
conducted (1.615 million, up 25.2 percent).
Apart from the thrills of the F1 and the concerts
and social scene that accompany it, November
is often the month for large-scale international
expos such as the Dubai Air Show and the
Dubai International Motor Show.

For example, the Global Village - an outdoor

bazaar featuring wares from merchants from
around the world - is only open in the winter
season and in its last season from end 2011/
early 2012, attracted almost five million visitors
over 151 days12.
12

Global Village Press release (www.globalvillage.ae)

December was second on the league table in

terms of transaction amount, with receipts at
$408.1 million (up 25.6 percent) but first in
terms of the number of transactions (1.6
million, up 21.7 percent). In December 2011,
the UAE came together to celebrate its 40th
anniversary of independence with countless
entertainment activities. In addition, the much
awaited Dubai Rugby Sevens also takes place
in early December. It would seem these
activities contributed to the increase in
addition to the regular end of the year
peak season.

Conversely, August, one of the hottest months

of the year, was the quietest period for tourists
with $194.5 million spent on Visa cards - just
0.8 percent up on the previous year. Considering
Ramadan fell in August in 2011, and the spiritual
and reflective nature of the holy month, the
reduction of commercial activity and related
spend by international visitors would be expected.
Overall, the number of transactions grew 22.7
percent to 15.6 million.

United Kingdom: UAEs top tourism contributor

According to VisaVue Travel data, visitors
from the United Kingdom were the largest
spenders in 2011, with tourism receipts
totalling $489.5 million, 11 percent higher
than the previous year.

transaction was only marginally higher than

last year ($215 versus $212).
Noteworthy increases in overall category
growth for UK tourists was in Quick serve
restaurants13 (QSRs) (up 104 percent per
transaction to $30), on Airlines14 (up 26
percent to $707) and in Discount stores15
(up 14 percent per transaction to $65)
demonstrating that visitors to the UAE are
enjoying dining out and getting a bargain at
discount stores.

The number of transactions made on Visa

cards by British tourists was also up year on
year, increasing 9.5 percent to 2.2 million.
Interestingly, despite the number of
transactions and amounts increasing
considerably, the average spend per

Spend by British Tourists by

Merchant Segment
QSRs +237.7%
$232,717M
$785,828M
Airlines +38.3%
$14,108,940M
$19,508,693M
Discount stores +76.2%
$623M
$1097M
Other travel & entertainment +22.6%
$32,954,068M
$40,410,552M
Misc. specialty retail +9.3%
$793,885M
$867,806M
Department stores +76.2%
$7,899,079M
$8,807,385M
Drug stores & pharmacies +17.8%
$1,086,753M
$1,279,987M
Business to business +4.3%
$1,141,557M
$1,190,972M
Oil +34.8%
$155,404M
$209,505M
Sporting goods stores +10.6%
$1,954,475M
$2,162,423M
Health care -0.8%
$6,422,612M
$6,369,461M

2010

13
14
15

2011

Source: VisaVue Travel Data: 2010 - 2011

Includes all quick service restaurant purchases

Includes all airline-related purchases
Includes discount store purchases

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Russia: UAEs second highest tourism contributor

Over the years, the UAE - and Dubai in particular - has emerged as a favoured
destination among Russian holiday makers. The two countries have seen more
flight routes launched between them including a budget route by FlyDubai in
late 2010 from Yekaterinburg, one of Russias largest cities.
Added to this, in late 2010, the Abu Dhabi
Tourism Authority (ADTA) opened a new
visitor centre in central Moscow at one of
Russias leading travel exhibitions in a bid to
increase the number of Russian visitors to
the UAE.

second only to the UK in terms of transaction

spend in 2011 spending $342.5 million, up 43.9
percent on the 2010 figure.
Russian visitors spent the most in the Other
retail category (up 46.2 percent to $183.4
million) followed by the Remaining merchants
category (up 30.3 percent to $52.1 million) and
in the Accommodation sector (up 36.2
percent to $42 million).

If looking at figures from 2011 is any indication,

the UAE is on track to meet this goal of
attracting more Russian tourists. According to
VisaVue Travel data, Russia tourists came

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Noteworthy increases in category growth were

in Other travel and entertainment (up 50.6
percent to $23.5 million), Department stores16
(up 53.5 percent to $14.5 million) and Radio
TV and stereo stores (up a staggering 97.4
percent to $4.9 million).

Categories leading in average spend were in

Discount stores (up 133.4 percent per
transaction to $921), QSRs (up 80.95 percent
per transaction to $210,579) and Business to
business17 (up 44.6 percent per transaction
to $775,047).

The number of transactions on Visa cards by

Russian tourists was up an impressive 49.3
percent year on year to 801,741.

Spend by Russian Tourists by

Merchant Segment
Discount stores +405.6%
$182M
$921M
QSRs +380.2%
$43,852M
$210,579M
Business to business +116%
$358,776M
$775,047M
Radio tv & stereo stores +97.4%
$2,485,671M
$4,905,525M
Misc. specialty retail +61%
$632,807M
$1,019,013M
Auto rental +63.9%
$431,475M
$706,983M
Furniture/equipment stores +69.6%
$1,390,982M
$2,359,392M
Bill pay +85.9%
$1,540,441M
$2,863,179M
Other travel & entertainment +50.6%
$35
$37

$1,540,441M
$2,863,179M

Department stores +53.5%

$9,471,439M
$14,537,442M
Government +54.5%
$608,542M
$940,384M

2010

16
17

2011

Source: VisaVue Travel Data: 2010 - 2011

Includes department store purchases

Includes printing, freight, commercial goods, industrial supplies, stationery, office supplies, uniforms etc

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Shopping a clear favourite pastime

Other retail category, which includes general

retail items such as antiques, jewelry and
clothing receiving 28.9 percent of tourists
spending in 2011 at $1.1 billion.

transaction sizes in the Other retail category

with an average of $1,587 spent per transaction
(up 19.4 percent over 2010).
Russian and Khazakstani visitors also showed a
propensity towards larger transaction sizes.
Russians spent an average of $645 per
transaction (down 1.4 percent) and
Khazakstanis spent an average of $574 (up 0.7
percent) in the Other retail segment.

The UAE visa regulations for visitors from

China were eased two years ago, and since
then, the number of Chinese tourists visiting
the UAE has been increasing.
And while theyve been visiting in the droves,
Chinese visitors also had some of the highest

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About VisaVueTravel Data

Launched in 2009, VisaVue Travel data is a
service offered by Visa Inc. that provides
government agencies, hotels, airlines and other
organisations within the tourism industry
unique insights into spending by international
visitors. VisaVue Travel data utilises aggregate
international account holder spending on Visa
debit, credit, commercial and prepaid cards to
help the tourism industry to analyse tourisms
economic contribution and tailor marketing,
promotional strategies and budgets based on
up-to-date visiting spending information.

As at December 31, 2010, Visa processed more

than 71 billion transactions totaling more than
US$3.3 trillion (payments volume, $5.2 trillion
total volume), and it is clear that Visa payment
cards and services help power the global
economy and make payments faster, more
convenient, more reliable and more secure.
For more information regarding Visas
partnership with the tourism industry and
VisaVue spending data referenced, contact
globalmedia@visa.com.

The report features:

Analysis of tourism spending based on
country of origin
A detailed overview of tourism spending
across thousands of merchant categories
Visa is a valuable partner for the tourism
industry, providing tools and resources that
offer insight into how best to attract
international visitors and strengthen a
countrys tourism competitiveness. With a
network that connects more than 2.3 billion
Visa account holders (includes Visa Europe
account holders) and the people who carry
them with tens of millions of merchant outlets
and 1.9 million ATMs around the world, Visa is
in a unique position to foster better
understanding of travelers mindsets and where
and how they spend their money when
traveling abroad.
With VisaVue Travel data, Visa turns
transaction data into actionable information
that delivers value to countries and businesses
that rely on tourism revenues.

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Travelling with Visa

Visa account holders benefit from secure,
convenient and reliable access to their funds,
with the ability to use digital currency at tens
of millions of merchant locations and 1.9
million ATMs in more than 200 countries and
territories. Carrying a Visa card is safer than
carrying cash if a Visa card is lost or stolen, it
can easily be blocked and replaced, unlike cash,
which is gone forever.

calculated automatically at a competitive rate

and deducted from your account in the usual
way. In addition, items purchased with Visa
Platinum and Visa Infinite cards are covered
by purchase protection insurance

Visa cards are a global currency, so it does

not matter if you have a chip-based or a
magnetic stripe-only card you can use it
anywhere. If you have a Visa chip card, you
may be asked to provide a signature instead
of a PIN by a merchant abroad

Top Tips for Using Cards Abroad

Before leaving:

Occasionally in countries where transactions

normally involve a PIN, magnetic stripe
account holders may be asked for a PIN
rather than a signature, so make sure you
know the PIN for any card you plan to use
while travelling. You can always reapply for a
new PIN from your bank if you have lost it

Check the expiration date on your Visa card

Tell your bank you will be using your card
abroad
Photocopy your card and passport, but keep
the photocopies separate

In some countries, some merchants offer

to make a currency conversion at point-of-
sale only do this if you are sure it offers a
good deal

Check with the bank that issued your Visa

card to see if it offers any extra benefits
such as travel insurance or a money-back
guarantee if something goes wrong with
a purchase

Try not to keep cards and cash in the same

place - that way theres less chance of losing
everything if something does happen

Note down the number of Visas Global

Customer Assistance Service (GCAS), a
global support network for account holders
that is available 24 hours a day, seven days a
week, every day of the year. Account holders
can call GCAS free from anywhere in the
world, using one of 550 telephone numbers

Withdrawing cash in another country is

exactly the same as it is at home you use
the same card and PIN but the machine will
dispense local currency. If you want to take
out money abroad for taxis or tipping, you
can locate the nearest ATM by using the
ATM locator available on www.visa.com

When abroad:

Report a lost or stolen card to your bank

immediately to stop all card transactions

When you pay with your Visa card, check the

information on the terminal or sales voucher
before you sign or enter your PIN
There is no need to worry about complicated
currency conversions because the amount is

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Tourism Outlook: UAE