Sue van Winsen finds out what the trends and issues are affecting travel out of the region and into Southern Africa.
1.A growing population of travellers
The Middle East is unique in that it is home not only to a growing population of travellers, but also a steady inflow of expatriate workers. This is enhanced by a burgeoning population of young travellers expected to enter the market in the coming years. An Amadeus study entitled Shaping the Future of Travel in the Gulf Cooperation Council (GCC), found that the Gulf region is experiencing a near-30% increase in population, a huge swathe of under-15s and a desire for large families.
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According to the findings of the IPK International World Travel Monitor, a very high proportion of high earners go on international trips, as well as a large share of younger travellers under the age of 24. More than 30% of outbound trips from the region were taken by immigrants with residence and work licences in the Middle East, mostly travelling abroad to visit friends and relatives.
Omer Kaddouri, CEO of Rotana, said: “Falling birth rates will lead to ageing populations in many developed countries over the next 10-year period, but the GCC will remain an unusually young part of the world.” The Amadeus study says: “Extremely well-informed, highly proficient with and having access to technology, this segment of tomorrow’s decision-makers will conduct end-to-end research online, make reservations and bookings independently, and share their experiences with their social network in various forms, including reviews, photographs and videos.” The younger demographic are also more likely to combine business and leisure.
2.Visa regimes
According to Rob Hetem, Director of Tamrich Tours, The Middle East market is extremely sensitive when it comes to feeling welcomed in the destinations they travel to, and for this reason South Africa’s stringent visa requirements have had a massive impact on arrivals out of the Middle East. The controversial visa legislation introduced in late 2014 was a major deterrent to this market, who tend to travel with their families and therefore were impacted by the unabridged birth certificate requirement. Hetem added that while many competitor countries may require Middle Eastern travellers to obtain visas, they have offered solutions that make the process less arduous, such as multiple-entry, multiple-year visas, or granting concessions when the traveller has already obtained a visa for a country with quality vetting processes, such as a US or Schengen visa.
3.Macro-economic trends
While the falling oil price has had minimal impact on the travelling population of the Middle East, global economic instability has had a psychological impact on this market, says Hetem. “Middle Eastern travellers tend to respond to economic downturn whether they are victims of it or not,” he says. “This manifests through slightly less extravagant travel, possibly look at four-star properties over five-star accommodation, and staying in the country for a slightly shorter amount of time.
4.Increased competition
Southern Africa faces fierce competition for this lucrative market from a number of countries, including Malaysia, Australia and the US. Hetem adds that intra-Middle Eastern travel is also growing in popularity. This was echoed in the Amadeus study, which explained that the Gulf region was close to enable domestic or intra-regional travel without borders for its citizens. “This feature will continue to drive growth in short-haul trips and weekend travel, in terms of both sheer numbers as well as frequency,” states the report. It goes on to say that the reduction of travel formalities, the facilitation of seamless travel through the deployment of e-border and customs pre-clearance, and the waiving of visas for key travel destinations, are likely to cause many Middle Eastern travellers to consider domestic options over international destinations.