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Past two decades, the travel landscape has significantly changed in GCC countries. But, the concept of luxury has remained a vital element of the change. The UAE and Saudia Arabia have been in the driving seats. Statistics from 2018 showed that the UAE alone has 73 percent of the region’s luxury properties. The country is poised to remain the GCC luxury segment leader well into 2022
close second in line is Saudi Arabia which is, predicted to witness the sharpest rise in luxury hotel supply by 2022 with a compound annual growth rate of 18 percent from 2018 onwards, compared to just 10 percent in the UAE, 11 percent in Oman and Kuwait, and 9 percent in Bahrain.
The Arabian Travel Market research firm showed that luxury properties in the region tripled in just 10 years, with 95 percent operated by international management brands.
This diversification has helped keep Dubai relevant, and most of all, affordable. Market leader Jumeirah’s recent Zabeel House openings have proven this change. When the emirate’s foremost luxury brand opens in areas not usually considered travel hotspots, including The Greens, one can see things are clearly evolving.
Dubai is unique, with around 60 percent of its business still in luxury properties. Like Jumeirah, Emaar also responded to this changing landscape, creating Rove Hotels, a mid-market alternative to its luxury counterparts.
Saudi Arabia’s huge investment in the Red Sea is another show of trust in the luxury sector. The projects underway are tapping into the clientele who would usually go to the likes of the Seychelles or Maldives, but allow them the cultural reassurances of Halal travel.
Even where experiences have turned into big money, in the likes of the most northern of the UAE’s emirates, Ras Al Khaimah, it’s luxury sector still thrives, properties such as the Waldorf Astoria among its shining jewels. And with the World Cup’s arrival imminent, Qatar continues to put its trust in yet more luxury properties around its capital, Doha.
Learning the lessons of countries like China is key. Suffering an oversupply of luxury properties, the UAE went through a similar challenge, but with a huge investment in mid-market properties, tourism chiefs have ensured the country stays relevant, whatever the region’s economic fortunes.
