Sat 13-01-2018 14:15 PM
DUBAI, 13th January, 2018 (WAM) -- The number of Russian tourists travelling to the GCC in 2020 is expected to be 38 percent higher than the arrival figures recorded for 2016, according to data published recently by Arabian Travel Market, ATM 2018, which takes place at Dubai World Trade Centre from 22nd to 25th April 2018.
Looking at the economic drivers, the value of the Russian Ruble is stable and firming gradually, helped by Russia’s decision to join OPEC and cut oil production, which has supported an oil price recovery to over US$60 per barrel, while forecasts for 2018 put oil at an average of $57 per barrel, a 5.6 percent increase over 2017.
Over the last 25 years, Russia has been well represented at ATM, with exhibitors including Moscow City Government, National Tourist Union and the city of St Petersburg. Russian visitors to the exhibition increased 17 percent YoY between 2016 and 2017 and 9.4 percent of total visitors last year were interested in doing business with Russia.
Simon Press, Senior Exhibition Director ATM, said, "Traditionally, the GCC has always been popular with Russian tourists but over recent years, we have witnessed some fluctuations in their arrival rates across the GCC, which was a reflection of volatility in the financial and energy markets. As those factors begin to steady, we are seeing more and more Russian visitors arrive and we expect this to continue."
Russia’s links with the GCC strengthened in 2017 with the introduction of additional airline routes, visas on arrival in the UAE for Russians, a new generation of leisure attractions, retail destinations and a broad range of hotels and resorts right across the GCC region.
"An increase of 38 percent on 2016 arrival figures provides a significant boost to the regional tourism industry and is supported by a number of stakeholders, from immigration initiatives, to the region’s hotels, its F&B venues, resorts, theme parks and malls, which all appeal to Russian visitors," he continued.
Commissioned by ATM, ahead of its 25th edition, the research study by Colliers International found that while the UAE will account for the majority of Russian arrivals, Oman will actually experience the highest Compound Annual Growth Rate, CAGR, at 9.2 percent. Both countries eased visa requirements for Russian nationals in 2017, in line with their respective tourism strategies. The Colliers research also revealed UAE visitors to Russia were forecast to increase by 15 percent in 2018, compared to 2016, as Russia hosts the World Cup.
Already feeling the benefits, in the first three quarters of 2017, Dubai reported a 98 percent year-on-year increase in the number of Russian arrivals, and the country is one of the emirate’s top 10 source markets. Further supporting the demand, flydubai twice extended its Russian network in 2017, adding flights to Makhachkala, Voronezh and Ufa, and daily flights to a second airport in Moscow - Sheremetyevo International.
With equal appeal to business visitors, Dubai was named the most popular Russian real estate investment destination in 2016, driven by the emirate’s market supply of off-plan luxury properties.
Elsewhere in the UAE, Russian hotel guest arrivals increased 41 percent in the first quarter of 2017, according to Abu Dhabi TCA and Ras Al-Khaimah, which recorded a 10 percent YoY increase in international arrivals in the first half of 2017, Russia was the second largest source market last year, with arrivals from the country up 84 percent YoY.
Despite the UAE and Oman leading comparative growth, Saudi Arabia is predicted to witness an increase of at least 20 percent in Russian visitors to the Kingdom by 2020.