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Attract high-spending tourists states often look overseas. That’s a good idea international visitors typically spend more than domestic travelers. But certain international markets present a more complicated consumer landscape than others. That’s what Visit California has discovered as it starts wooing more travelers from the Middle East.
The Middle East is one of the fastest-growing outbound tourism regions in the world. Outbound travel from the region has quadrupled during the past 20 years.
The region also delivers big spenders. Per capita, outbound tourism spending from the countries of the Gulf Cooperation Council (United Arab Emirates, Saudi Arabia, Kuwait, Oman, Bahrain, and Qatar) is 6.5 times higher than the global average.
People living in GCC countries are also responsible for 60 percent of Middle Eastern travel to the United States. That’s why, when it comes to high-end products, this is a logical market for American luxury marketers to approach.
While Visit California has been attending the Arabian Travel Market, the region’s premier travel trade show, for the past four years, it decided it needed to take another step to increase the state’s visibility in the market.
In April, Visit California embarked on its first diplomatic mission in the region to explore the business potential. Beteta, Bermingham, and the chief executives of ten of the state’s destination marketing organizations took part in meetings and networking events in Abu Dhabi and Dubai, designed to help the group understand the GCC’s nuances.
The regional population includes both nationals and expatriates. In the United Arab Emirates, 81 percent of the population is expat, while Saudi Arabia is more reflective of the region writ large, with a little more than a third of the population being an expat.
“These are two very different markets, with different styles of traveling,” said Leona Reed, associate vice president global marketing for Visit California.
Visit California research found that Kuwaitis are more well-traveled than other Middle Eastern nationals. Qatar nationals and those from the United Arab Emirates are more conservative travelers. Saudi nationals get education abroad and are more sophisticated travelers. Generally, nationals from Gulf countries tend to opt for a more classic, hands-on style of luxury. And they are bigger spenders than expats.
Aside from their tendency to spend, the market presents other factors that make it extremely lucrative. GCC travelers go on long vacations, in part to escape hot Arabian summers.
Unveiling the Strategy
According to Visit California’s research, travelers from the Middle East are looking at destinations that are safe for Muslims, as both real and perceived safety has become a high priority at destinations with high levels of services. They also opt for places that consider their unique needs.
The provision of Halal food is by far the most important service that a Muslim traveler requires, Reed said. At the very least, she added, food outlets trying to appeal to this market will have to ensure all ingredients are clearly labeled.
There’s also the matter of prayer. According to the Pew Research Centre report, 63 percent of Muslims perform the five daily prayers. To cater, facilities frequented by Muslim travelers need to be equipped with prayer rooms.
It’s also about providing the right kind of luxury. “Luxury for this market is about being treated with a lot of deference. Exclusivity and pampering are key. This market is all about old luxury – it’s less about the experience and more about the luxury product,” Reed said.
Providing both the appropriate products and service levels for this market will take significant training and implementation. That’s why Visit California is focused on taking the steps needed to reduce the gulf between existing products and the demands and needs of travelers from the GCC.
