In spite of the continued uncertainty with regard to the trajectory of the covid19 pandemic, globally, countries are trying to return to normalcy. Significantly, the performance of United Arab Emirates (UAE’s) tourism sector in the first quarter of 2022 was not just back to pre-covid levels, but actually managed to do better.
H.E. Dr. Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and Small and Medium Enterprises and Chairman of the UAE Tourism Council highlighted these point while providing tourism figures for Q1 2022.Hotels received an estimated six million visitors in the first quarter of the year – a rise of 10% from 2019. Revenues for the first quarter of 2022, were AED (United Arab Emirates Dinar) 11 billion or USD 3 billion (2.9 billion) which was a jump of 20% from the first quarter of 2019.
The stellar performance of UAE’s tourism sector in the first quarter of 2022 is being attributed to a number of factors including two major events — the Dubai Expo 2020 and the World’s Coolest winter campaign.
In order to attract more visitors to the Dubai Expo 2020, UAE had also relaxed conditions for international travellers. The Emirate has also introduced new visitor visa categories with an eye on giving a boost to tourism. What is remarkable is that during the first quarter of 2022, average occupancy increased 25% from 3 nights to 4 nights and witnessed an 80% growth (no other country had such high occupancy rates)
The total number of tourists received was 4 million, and not surprisingly, Indian nationals along with tourists from UK, US and Russia accounted for a significant percentage of tourists to UAE. While other countries like Singapore have also opened their borders to international tourists, including Indians, and removed restrictions, the biggest advantage the UAE has is its geographical location – especially for tourists from the South Asian region. Given that the travelling time is less, even short breaks are possible.
Apart from this, getting a UAE visa is relatively easier than one for the west and even ASEAN countries. UAE also has enough to offer for families in terms of shopping, recreation etc. There is also a wide variety of options, as far as hotels are concerned. Since a significant number of Indians have business links or even offices in Dubai, in many cases holidays are coupled up with business trips. The fact that UAE hosts important cricketing events – in 2021 it hosted the Indian Premier League (IPL) 2021 and T20 world cup – will help it in attracting more Indian tourists in the future.
UAE is not only likely to continue to remain as a favoured tourist destination, but in the near future, it is also likely to attract more international students, especially from India. Apart from its geographical location, and the fact that it is home to a substantial population of South Asian expats, it is also home to a number of campuses of UK and US universities.
Most importantly with an eye on attracting qualified professionals and researchers, UAE has introduced a long term residency visa, dubbed as Golden Visa for researchers, medical professionals and those within the scientific and knowledge fields, and remarkable students. Here it would be pertinent to point out that UAE-India Comprehensive Economic Partnership Agreement (CEPA) which came into effect earlier this month permits easier access for Indian engineers, IT professionals, accountancy professionals and nurses. The introduction of short term work visas will also help in attracting professionals from India.
In the past, one of the reasons why UAE lost out to other countries, in attracting professionals and students from South Asia (though the number of Indian professionals in UAE has been increasing in recent years), who preferred the West, Australia or Singapore, was the fact that UAE did not provide long term residency.
With the introduction of long-term visas, it is not only professionals, but even students who otherwise may have sought to pursue education in the west who will now look towards the UAE. One of the options, which students from India could go for is the dual degree program, which has been introduced by many UK universities, where they spend some time in UAE and the rest in UK. Here it would be pertinent to point out, that UAE universities are also offering scholarships with an eye on attracting international students. One of the provisions of the India-UAE Foreign Trade Agreement (FTA) which both countries signed earlier this year is that India will set up an IIT in Abu Dhabi.
The UAE has been seeking to re-invent for some years. A good example of this is the UAE Vision 2021, Dubai Vision 2030 and Abu Dhabi Vision 2030. The Gulf nation has been able not only to handle covid19 successfully, but with its innovative and visionary thinking it has been able to do remarkably well in attracting tourists. Its ability to think out of the box will enable it to emerge as an important economic hub. UAE is likely to not just remain a favoured tourist destination, but also could emerge as a top preference for Indian nationals to study and work.
